Ligand to acquire assets of Novan, following July 17 offer

Ligand Pharmaceuticals announced that it has closed the transaction to acquire assets of Novan, following the offer it made on July 17 . On July 17, Ligand offered $15M to acquire all of the assets of Novan as well as to provide up to $15M in debtor-in-possession or DIP” financing. In September 2023, the Bankruptcy Court approved a $12.2M bid from Ligand to purchase berdazimer gel and all the assets related to the NITRICIL technology platform, and the rights to the Bayer-partnered Sitavig program. The remaining commercial assets of EPI Health will be sold to other parties. The approved $12.2M bid was credited to the $15 M DIP financing, with the balance of $2.8M and accrued interest repaid to Ligand. Berdazimer gel remains on track for a PDUFA goal date of January 5, 2024, as the first potential at-home treatment for molluscum contagiosum. “We are pleased with the outcome of the bankruptcy proceeding resulting in Ligand’s full ownership of berdazimer gel, NITRICIL platform and related assets. We will look forward to the FDA’s decision regarding the New Drug Application for berdazimer gel in January of next year, and remain confident in its potential approval as the first-ever at home treatment for molluscum contagiosum,” said Todd Davis, CEO of Ligand. “We are ideally positioned to take advantage of special situations such as this, and, consistent with our business model, will seek marketing partners for the acquired assets to maximize value to Ligand shareholders.” Birch Lake acted as financial advisor and Morgan Lewis acted as legal advisor to Ligand for this transaction.