What Novan does

Novan, Inc. was a clinical-stage dermatology drug development company founded in 2008 and headquartered in Morrisville (later Durham), North Carolina. The company's core technology was a proprietary nitric oxide-releasing platform (NITRICIL) developed to deliver topical therapeutics for skin diseases. Its lead asset was berdazimer gel, 10.3% (SB206), a first-in-class nitric oxide-releasing topical gel targeting molluscum contagiosum, a contagious skin infection primarily affecting children under 14 with US prevalence estimated at 5.1%-11.5%. Novan pursued FDA approval with a PDUFA goal date of January 5, 2024 and reported a target FDA review milestone of the same date.

In March 2022, Novan acquired EPI Health, a dermatology-focused commercial company, to build out commercial infrastructure and broaden its dermatology footprint beyond SB206. The company funded operations through a series of equity and warrant-linked financings, including a $40M raise in June 2021, a $15M registered direct offering in June 2022, and a $6M round in March 2023, alongside historical capital from Malin Corporation and Aspire Capital Partners. Cumulative disclosed funding exceeded $200M across multiple rounds dating back to 2009.

In July 2023, Novan filed for Chapter 11 bankruptcy protection and entered a stalking horse asset purchase agreement with Ligand Pharmaceuticals to sell substantially all of its assets. Following the asset sale, the SB206 asset was ultimately approved by the FDA and commercialized in early 2024 as Zelsuvmi by Pelthos Therapeutics (a Ligand-affiliated entity), marketed as the first FDA-approved at-home prescription treatment for molluscum contagiosum. As of the input data, Novan as an independent operating entity has ceased, with the commercial franchise continuing under Pelthos across Zelsuvmi, Xepi, and Xeglyze.

Name

Novan

Legal name

Novan, Inc.

Website

https://novan.com

Company type

Private

Founded year

2008

Operating status

Closed

Headcount range

51–100 employees

Short description

Novan was a clinical-stage dermatology company that developed a proprietary nitric oxide-releasing platform (NITRICIL) to treat skin diseases, with lead asset berdazimer gel (SB206) for molluscum contagiosum; it filed for Chapter 11 in 2023 and sold assets to Ligand Pharmaceuticals, which commercialized the product as Zelsuvmi via Pelthos Therapeutics.

Ownership category

akta.pro rank

Product category

Topical Dermatology Pharmaceuticals

NAICS

Pharmaceutical and Medicine Manufacturing (3254)

SIC

Pharmaceutical Preparations (2834)

akta.pro primary industry

Infectious Disease & Antimicrobials Pharmaceuticals (HLAIAAAG)

Keywords

• Topical dermatology therapeutics
• Nitric oxide drug delivery
• Prescription skin treatments
• Molluscum contagiosum therapy
• Clinical-stage pharmaceuticals

Headquarters

HQ city

Morrisville

HQ country

United States

HQ region

North America

Markets served

GTM type

B2B

Offering type

Hardware or Manufacturing

Cost components

Technology or R&D, Personnel, Operations, Marketing or Sales, Supply Chain

Core offering

Novan was a clinical-stage pharmaceutical company developing topical therapeutics based on its proprietary nitric oxide-releasing (NITRICIL™) technology platform. Its lead asset, berdazimer gel 10.3% (SB206 / ZELSUVMI), is a topical prescription treatment for molluscum contagiosum, a contagious skin infection primarily affecting children. Following FDA approval in early 2024, the product was commercialized by Pelthos Therapeutics (Ligand Pharmaceuticals' platform) as the first at-home prescription treatment for molluscum contagiosum.

Product overview

Novan was a dermatology company focused on developing innovative therapeutic products for unmet medical needs, particularly skin conditions. The company's primary asset was SB206 (berdazimer gel, 10.3%), an investigational treatment for molluscum contagiosum. Following Novan's Chapter 11 bankruptcy and asset sale to Ligand Pharmaceuticals, the product was commercialized by Pelthos Therapeutics as Zelsuvmi, which received FDA approval in early 2024.

Differentiator

Problem solved

Functional benefit

Products and services

• SB206 (berdazimer gel, 10.3%) / ZELSUVMI Topical gel prescription treatment for molluscum contagiosum, a contagious skin infection primarily affecting children under 14. Developed using Novan's proprietary NITRICIL™ nitric oxide-releasing platform.
• ZELSUVMI® FDA-approved at-home prescription topical treatment for molluscum contagiosum lesions in pediatric and adult patients. Marketed as a self-applied therapeutic reducing treatment burden.

Quantifiable outcome

• Target FDA review goal of January 5, 2024 for berdazimer gel (SB206) for molluscum contagiosum

Segments1 record

Ideal customer profiles1 record

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature1 record

Partnerships

One partnership is on record.

• EPI HealthcoreStrategic or Co-development Partner · 11 March 2022Novan acquired EPI Health as part of its corporate expansion strategy in March 2022. This acquisition was intended to strengthen Novan's presence in the dermatology market.

Scale indicators2 records

Recent moves8 records

Expansion highlights3 records

Broad incumbents

• Galderma: One of the world's largest independent dermatology companies with a broad portfolio of prescription, aesthetics, and consumer skin care products. Operates broadly in the same dermatology therapeutics market as Novan's specialty focus.
• Pfizer (Anacor / dermatology portfolio): Global pharmaceutical company that acquired Anacor Pharmaceuticals, gaining a dermatology portfolio including topical antifungal and anti-inflammatory products. Relevant as a major pharma with established dermatology operations.
• Bausch Health (Bausch + Lomb dermatology): Large diversified pharmaceutical company with a significant dermatology franchise including topical treatments. Comparable as an established player with overlapping dermatology therapeutic capabilities.

Others

• Ligand Pharmaceuticals: Specialty pharma and royalty company that acquired substantially all of Novan's assets through the Chapter 11 stalking horse agreement. Direct relationship as acquirer of Novan's technology platform and SB206 asset.

Direct peers

• Verrica Pharmaceuticals: Specialty dermatology pharma that developed Ycanth (cantharidin 0.7%), the other FDA-approved treatment for molluscum contagiosum. Most direct competitor to Novan's SB206/Zelsuvmi in the same indication and patient population.
• Arcutis Biotherapeutics: Specialty dermatology pharmaceutical company developing and commercializing topical treatments for inflammatory skin conditions. Comparable as a small-cap, single-indication-focused dermatology pharma business model.
• Aclaris Therapeutics: Clinical-stage dermatology company developing therapeutics for skin diseases including immuno-inflammatory conditions. Comparable small-cap specialty dermatology pharma business model.
• Dermavant Sciences: Dermatology-focused pharmaceutical company developing topical therapies for skin diseases. Directly comparable specialty dermatology pharma profile with novel topical therapeutics.
• Sol-Gel Technologies: Specialty dermatology company developing topical generics and innovative treatments for skin conditions including acne and actinic keratosis. Comparable specialty dermatology pharma focused on topical product development.

Emerging players

• Pelthos Therapeutics: Specialty dermatology therapeutics company that commercialized Zelsuvmi (formerly SB206) following Novan's asset sale to Ligand. Operates the same products and NITRICIL™ platform that Novan developed, and is the direct successor entity.

Market position

Strengths3 records

Weaknesses4 records

Competitive moat3 records

Key risks5 records

Key highlights5 records

Customer concentration

• Xx.com/novan_biotech

Revenue estimate

Valuation estimate

Number of profiles

Profiles3 records

Subsidiaries1 record

Funding overview

Funding rounds14 records

Investors4 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A1 record

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Novan