Funds Intended to Advance SB204 into Phase 3;
Company Expands Board with the Addition of Three Directors
DURHAM, N.C. (March 15, 2015) - Novan Therapeutics, a clinical-stage biotechnology company focused on advancing innovation in dermatology via nitric oxide therapies, today announced that it has secured $50 million in an oversubscribed private financing. New investor Malin Corporation Plc. (ISEQ: MLC) functioned as the cornerstone investor along with strong participation from Novan's existing private investors throughout the Research Triangle area of North Carolina. The round closed March 27, 2015 at $50 million including an August 2014 initial filing of $10.3 million.
Neal Hunter, Novan's Founding Investor and Chairman, stated, "We believe the promise of Novan's pipeline and our advancement toward commercialization enabled us to attract strong participation in this round, leading us to close at twice the original target of $25 million. The funds secured will support Novan's efforts to create impactful, first-in-class, nitric oxide-based healthcare solutions in a number of large market indications."
In association with the financing, Novan has added two preeminent life science executives from Malin Corporation to the Company's Board of Directors: G. Kelly Martin, former CEO of Elan Corp., and Sean Murphy, former Head of Corporate M&A and Business Development for Abbott Laboratories. Mr. Martin commented, "Novan has assembled a talented leadership team and generated key clinical proof of concept demonstrating the efficient and effective delivery of nitric oxide, a naturally occurring therapeutic agent with potentially broad application. Novan's initial focus on the skin provides clear pathways for regulatory approval, while we as a team look to selectively expand Novan's pipeline of programs in the clinic."
Novan also added W. Kent Geer to the Company's Board, bringing the total number of Novan's directors to eight. As a retired audit partner from Ernst & Young, LLP, Mr. Geer has served numerous public and private companies in the life sciences, pharmaceutical, and technology sectors and is currently Chairman of the Board of PowerSecure International, Inc. (NYSE: POWR). Mr. Geer stated, "I am honored to join Novan's Board and anticipate playing a key role in advancing the Company's financial strategy. The announcement of this financing round illustrates Novan's continued ability to access capital to support its development objectives."
Novan's Clinical Dermatology Programs
SB204 is an investigational drug product in late-stage development as a new treatment for acne vulgaris. Clinical studies to date have shown that SB204 may be a well-tolerated solution with rapid onset of action. Acne is the most common skin disease in the United States, affecting more than 50 million people. Novan expects to complete its current Phase 2b clinical study of SB204 this summer and is targeting to enter Phase 3 testing by Q1 2016. SB204 may ultimately serve as a novel treatment alternative to help curb the overuse of topical and oral antibiotics in patients with acne.
Additionally, the Company plans to launch the clinical development of SB206, a topical anti-viral that could lead to a treatment for human papillomavirus (HPV) infections. SB206 is expected to enter a Phase 2 clinical trial in the second quarter of 2015 for the treatment of external genital warts. About two-thirds of healthy American adults are infected with HPV, and genital warts remain the world's most common sexually transmitted disease.
About Malin Corporation, Plc.
Malin is a newly established, Irish incorporated public limited company. Its purpose is to create shareholder value through the selective long-term application of capital and operational expertise to private, pre-IPO, pre-trade sale operating businesses in dynamic and fast growing segments of the life sciences industry. Malin will focus its efforts on acquiring majority or significant minority equity positions in companies with post investment valuations in the $10 million to $250 million range, and post acquisition, on building optimal long term value.
About Novan, Inc
Novan is a privately-held, clinical stage biotechnology company advancing potentially best-in-class therapies using drugable nitric oxide. Nitric oxide, one of the most studied molecules in human physiology, has been shown to exhibit broad anti-microbial activity and to promote vasodilation, regulate inflammation, stimulate tissue repair, and eradicate cancer cells. Novan's initial focus is on emotionally and/or physically debilitating skin diseases. The company's patented Nitricil™ technology overcomes the previous delivery issues with nitric oxide by stably storing the gaseous species as a solid that can be transformed into targeted therapeutics. The design of Novan's products is driven by the patient experience, as the Company aims to create medicines that are safe, easily accessible, and can improve outcomes by using nitric oxide to target multiple aspects of disease pathology.
This press release contains forward-looking statements involving risks and uncertainties, both known and unknown, that may cause actual results to differ materially from those indicated. Actual results may differ materially due to a number of factors, including, but not limited to, risks associated with pharmaceutical development, clinical trials that may not proceed as intended or produce the results expected, clinical trials that cost more, are less effective and take longer to complete than expected, raw materials and drug supply, changes in regulatory requirements, competition, and financing.
To learn more about Novan Therapeutics, please visit www.novantherapeutics.com.
Justin Jackson, Burns McClellan, on behalf of Novan Therapeutics