NOVN - Novan craters as company files for bankruptcy to sell most of its assets
2023-07-17 10:52:03 ET
Novan ( NASDAQ: NOVN ) shares plummeted -68.7% on Monday after the company said it had filed for bankruptcy and entered into a deal to sell most of its assets to Ligand Pharmaceuticals ( NASDAQ: LGND ) for $15 million.
The company said that it continues to operate its business as a debtor-in-possession under the jurisdiction of the bankruptcy court.
In early June, Novan had terminated about 50% of its workforce .
On July 14, Novan entered into a bridge loan of $3 million with Ligand, the company said in a statement .
Novan plans to continue to work with the FDA to progress towards potential approval of berdazimer gel, with a PDUFA goal date of January 5th, 2024.
"Novan has engaged Raymond James & Associates to advise on its strategic options, including the process to sell its assets in connection with the Chapter 11 Case," the company said.
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Novan craters as company files for bankruptcy, to sell most of its assets