Novan Secures $50 Million Private Financing
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. (MLC: ISE) 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.”