Novan Therapeutics raises $50m
This article was originally published in Scrip
The private biotech company Novan Therapeutics has secured $50m in an oversubscribed private financing. New investor Malin was the main contributor, with Novan's existing private investors also participating. The round closed on 27 March, including an August 2014 initial filing of $10.3m. The Durham, North Carolina-based Noven will use the funds to develop its first-in-class, nitric oxide-based products in a number of "large market indications". 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." Novan's lead product ,SB204, is in late-stage development as a new treatment for acne vulgaris that may help curb the overuse of topical and oral antibiotics for this condition. Clinical studies so far suggest it is well-tolerated solution with a rapid onset of action. Novan expects to complete its current Phase IIb clinical study of SB204 this summer and hopes to enter Phase III early 2016. It also plans to start clinical development of SB206, a topical anti-viral for human papillomavirus (HPV) infections. It is due to enter a Phase II clinical trial in the second quarter for the treatment of external genital warts.