Novan Inc., a Durham, N.C.-based medical dermatology company, announced that it had entered into an agreement to sell all of its assets and was filing for chapter 11, the Carolina Journal reported. Since its founding in 2006, Novan has had as its main focus to research, develop and commercialize innovative products for skin diseases such as acne, rosacea and plaque psoriasis, among others. Novan, alongside its wholly owned subsidiary EPI Health, is entering into a stalking-horse asset purchasing agreement with San Diego-based company Ligand Pharmaceuticals for $15 million, along with a loan in order to keep the company afloat until the deal is officially approved by the bankruptcy court. Just two months ago, Novan had reported a loss of $14.1 million in its first quarter and during June, it announced that it was cutting 50% (equaling to 39 employees). Novan had previously disclosed that it was pursuing financial and strategic alternatives to conserve cash. Previously, Novan had stated that it believed that “its existing cash and cash equivalents as of March 31, 2023, plus expected receipts associated with product sales from its commercial product portfolio,” would provide enough liquidity to fund all of its planned operating needs into late June of 2023. Among Novan’s most notable medical products in development is berdazimer gel 10.3%, which helps with the treatment of molluscum contagiosum, included in the selling agreement.
