Ligand Makes $15 Mln Acquisition Offer After Novan Files For Bankruptcy Protection

(RTTNews) - Ligand Pharmaceuticals Inc. (LGND) said on Monday that it has made bid to acquire the assets of Novan, Inc. (NOVN) for $15 million in cash and provide up to $15 million in DIP financing to Novan inclusive of a $3 million bridge loan already funded.

Earlier today, Novan announced that it has filed for Chapter 11 reorganization and its entry into a stalking horse acquisition offer with Ligand.

Todd Davis, CEO of Ligand, said: "…Ligand has a proven track record of finding and investing in attractive assets that are in special situations and maximizing value - both for the assets and for shareholders."

If Ligand's bid is approved in the anticipated bankruptcy sale and auction process, Ligand will acquire the Novan assets.

The complete assets of Novan include Berdazimer gel, all other programs in development, the NITRICIL drug delivery technology, and the commercial assets of its EPI health business.

Berdazimer gel is in development for molluscum contagiosum infection, which has a filed new drug application with the FDA with an assigned PDUFA goal date of January 5, 2024.

Ligand acquired milestone and royalty rights to berdazimer gel in 2019.