Business
Ligand Offers $15 Million to Acquire Assets of Novan, Inc.
Ligand provides bridge and debtor-in-possession ("DIP") financing to Novan SAN DIEGO--(BUSINESS WIRE)-- Ligand Pharmaceuticals Incorporated (NASDAQ: LGND)
About this update from Ligand Pharmaceuticals Incorporated
[{"type":"text","content":"\nLigand provides bridge and debtor-in-possession (\"DIP\") financing to Novan\n\n\n SAN DIEGO--(BUSINESS WIRE)--\nLigand Pharmaceuticals Incorporated (NASDAQ: LGND) announced that it has made an offer to acquire the assets of Novan, Inc. (Nasdaq: NOVN) (“Novan”) 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. Novan announced earlier today that it has filed for Chapter 11 reorganization and its entry into a stalking horse acquisition offer with Ligand. The transaction is designed to preserve and maximize the value of Novan’s commercial business and berdazimer gel development assets. Berdazimer gel is in development for molluscum contagiosum infection, which has a filed new drug application (“NDA”) with the Food and Drug Administration (“FDA”) with an assigned PDUFA goal date of January 5, 2024. Ligand acquired milestone and royalty rights to berdazimer gel in 2019. If Ligand’s bid is the successful bid in the anticipated bankruptcy sale and auction process, Ligand will acquire the Novan assets and consistent with Ligand’s business model, will seek to out license or sell the existing development programs and commercial business assets of Novan.\n\n\nThe terms of the proposed transaction are outlined below:\n\n\n\nLigand has submitted a $15 million bid to acquire all the assets of Novan, including berdazimer gel, all other programs in development, the NITRICIL™ drug delivery technology, and the commercial assets of its EPI health business.\n\n\n\nSubject to court approval, Novan will be able to draw down from the $15 million secured DIP loan during the bankruptcy cases (which includes a $3 million bridge financing loan previously extended by Ligand) and will be repaid through the sale of Novan’s assets.\n\n\n\nThe $15 million DIP loan will accrue interest at 12% interest annually and will be subject to a 6% increase in interest should Novan default on its loan agreement.\n\n\n\nShould the court accept a bid for the assets of Novan from another party, Ligand’s DIP loan will be repaid, and Ligand expects that its milestone and royalty rights will be preserved.\n\n\n\nThe transaction is expected to close in the third quarter of 2023.\n\n\n\n“In the first half of the year we have focused on fortifying our business team, including a sharpening of our ...