- Novan Inc (NASDAQ: NOVN) has acquired EPI Health LLC, a specialty pharmaceutical company focused on the U.S. dermatology market.
- EPI Health offers a product portfolio that includes four prescription products across psoriasis, rosacea, dermatosis, and acne, with a 2021 operating revenue of $17.6 million.
- Deal consideration of $27.5 million consists of $11.0 million in cash and $16.5 million in a seller's note with a 24-month term.
- Based on the financial performance of EPI's products and the occurrence of other events, Novan will pay up to an additional $23.5 million in potential future milestone payments in cash or stock.
- "As we prepare for the planned NDA submission of our lead product candidate, SB206 (berdazimer gel 10.3%), it was imperative that we evaluate a broad spectrum of options for potential commercialization. This acquisition creates a robust commercial infrastructure for Novan, and I believe sets the stage for the future success of the Company," commented Paula Brown Stafford, Chairman and Chief Executive Officer of Novan.
- Novan will employ approximately 100 staff following the acquisition, including sales personnel currently covering 42 sales territories in the U.S.
- Price Action: NOVN shares are up 1.74% at $3.57 during the market session on the last check Friday.
Read at Benzinga