Published on 18 Jul 2023 on Zacks via Yahoo Finance
Ligand (LGND) Offers $15M in Cash to Acquire All Novan Assets
Ligand Pharmaceuticals, Inc. LGND has made an offer to acquire the assets of Novan, Inc. for $15 million in cash and provide an additional up to $15 million in debtor-in-possession (DIP) financing to Novan inclusive of a $3 million bridge financing loan already funded.
The offer was made after Novan filed for Chapter 11 reorganization of the U.S. Bankruptcy Code. With this filing, Novan is looking to stay in business and restructure its debts, assets and operations with court approval.
Ligand reported that the proposed transaction is designed in a way that will preserve and maximize the value of Novan’s commercial business and berdazimer gel development assets. Novan currently has a filed new drug application with the FDA to seek approval for berdazimer gel in the treatment of molluscum contagiosum infection. A decision from the regulatory body is expected on Jan 5, 2024.