Novan

About Novan

Novan, a clinical-stage pharmaceutical company, was established in 2006, originating from research conducted at the University of North Carolina at Chapel Hill by chemistry professor Mark Schoenfisch and his graduate student, Nathan Stasko. The company focused on leveraging the antimicrobial and immunomodulatory properties of nitric oxide for dermatological applications. Its core asset is the proprietary NITRICIL™ technology platform, which stabilizes nitric oxide in nano-particles, allowing for its controlled, timed release as a therapeutic agent. This technology was developed to overcome previous delivery challenges of the gaseous molecule, making it a viable drug compound for various skin conditions.

The company's business model centered on the research, development, and eventual commercialization of a pipeline of drug candidates targeting significant unmet needs in the dermatology market. Key pipeline products included treatments for acne vulgaris (SB204), fungal infections (SB208), and viral skin infections like human papillomavirus (HPV) and molluscum contagiosum (SB206). Novan operated by advancing these candidates through clinical trials, with the goal of obtaining FDA approval and launching them commercially. The company went public in 2016 and, at its peak, its stock traded at over $280 per share. Throughout its history, Novan raised significant capital, including a notable $50 million round in 2015 to advance its acne drug into Phase III trials.

Despite its promising technology, Novan faced financial challenges. In July 2023, the company filed for Chapter 11 bankruptcy and entered into a stalking horse asset purchase agreement with Ligand Pharmaceuticals. Ligand subsequently acquired all assets related to the NITRICIL™ platform, including the lead product candidate berdazimer gel (now ZELSUVMI™), for $12.2 million in September 2023. Following the acquisition, Ligand established a wholly-owned subsidiary, Pelthos Therapeutics, in April 2024 to manage and commercialize these assets. In a significant milestone, ZELSUVMI™ received FDA approval in January 2024 for the topical treatment of molluscum contagiosum. To fund the commercial launch, Pelthos is set to merge with Channel Therapeutics, a public company, in a transaction expected to close in the summer of 2025.