Novan Completes Funding Transaction with Ligand Pharmaceuticals
May 06 2019 - 9:00AM
Novan, Inc. ("the Company" or "Novan") (Nasdaq:NOVN) today
announced that the Company has secured $12 million in non-dilutive
capital from Ligand Pharmaceuticals Incorporated (“Ligand”)
(Nasdaq:LGND). This transaction further enables the accelerated
advancement of the molluscum Phase 3 program within the overall
Novan mid-to-late stage clinical development portfolio.
Under the terms of this development funding and
royalty agreement, Ligand will provide funding of $12 million in
exchange for a tiered royalty of 7 to 10% which will be based on
future North American sales of SB206 for the molluscum indication.
In addition, Ligand is entitled to receive regulatory and
commercial milestones of up to $20 million based on specific
regulatory and sales progress. The capital from this transaction is
contractually dedicated to the exclusive use in the advancement of
the Phase 3 molluscum program. The Novan team will continue to have
responsibility for all clinical development and regulatory
execution of SB206 and the totality of the molluscum program
activity.
“The decision to advance a molluscum indication
was driven, in large part, by a strong recommendation from Dr.
Tomoko Maeda-Chubachi, our VP of Medical Dermatology,” commented
Paula Brown Stafford, President and Chief Operating Officer of
Novan. Commenting further, Ms. Stafford added, “we remain focused
on smartly advancing the underlying science and executing the
mid-to-late stage clinical programs in a highly disciplined
manner.”
The Company remains focused on the
re-engineering of certain aspects of its internal operations as
outlined during last week’s webcast. In particular, the reduction
of the existing real estate footprint and the strategic migration
of drug substance and product manufacturing remain key objectives
for 2019. Progress in these two areas will change the cost
characteristics of Novan by reducing the fixed component of the
cost base in favor of variable costs.
About Novan
Novan, Inc. is a clinical development-stage
biotechnology company focused on leveraging nitric oxide’s
naturally occurring anti-microbial and immunomodulatory mechanisms
of action to treat a range of diseases with significant unmet
needs. We believe that our ability to deploy nitric oxide in a
solid form, on demand and in localized formulations allows us the
potential to improve patient outcomes in a variety of dermatology,
women’s health and gastrointestinal diseases.
Forward-Looking Statements
This press release contains forward-looking
statements including, but not limited to, statements related to
pharmaceutical development of nitric oxide-releasing product
candidates, our intention to advance development of certain product
candidates, including SB206 for the treatment of molluscum, the
expected financial and other benefits of the funding arrangements
and the future prospects of our business and our product
candidates. Forward-looking statements are subject to a number of
risks and uncertainties that could cause actual results to differ
materially from our expectations, including, but not limited to,
risks and uncertainties in the clinical development process,
including, among others, length, expense, ability to enroll
patients, reliance on third parties, potential for delays and that
results of earlier research and preclinical or clinical trials may
not be predictive of results, conclusions or interpretations of
later research activities or additional trials; risks related to
the regulatory approval process, which is lengthy, time-consuming
and inherently unpredictable, including the risk that the products
covered by the financing arrangement may not be approved or that
additional studies may be required for approval or other delays may
occur and that we may not obtain funding sufficient to complete the
regulatory or development process; our ability to identify and
enter into strategic relationships or other business development
opportunities for the potential commercialization of our product
candidates and support thereof; risks relating to our ability to
complete an agreement for the manufacture of our active
pharmaceutical ingredient (API); risks related to the manufacture
of clinical trial materials and commercial supplies of any
potentially approved product candidates, including the manufacture
of our API and our ability to transfer technology and processes to
a third party effectively; risks associated with relying on third
parties for the manufacture of drug product for clinical trials;
our ability to reduce costs; risks relating to commercialization of
products, if approved; our ability to obtain additional funding or
enter into strategic relationships or other business development
necessary for the further advancement and development of our
product candidates; and other risks and uncertainties described in
our annual report filed with the SEC on Form 10-K for the twelve
months ended December 31, 2018, and in our subsequent filings with
the SEC. These forward-looking statements speak only as of the date
of this press release, and Novan disclaims any intent or obligation
to update these forward-looking statements to reflect events or
circumstances after the date of such statements, except as may be
required by law.
CONTACT:
(Investors & Media)Cole IkkalaDirector,
Investor Relations, Communications & Business
Developmentcikkala@novan.com
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