Novan to restructure finances, focus on berdazimer launch

Key takeaways:

• Novan will be reallocating its assets to support the launch of berdazimer gel 10.3%.
• The company plans to restructure its commercial products and reduce its workforce by 50%.

To focus on the launch of berdazimer gel 10.3%, Novan will be restructuring its commercial business and reducing its workforce due to profitability challenges, the company announced in a press release.

“We continue to face serious challenges achieving profitability with our commercial assets in the current economic environment, while also endeavoring to extend our cash runway through the [prescription drug free user action date] goal date of Jan. 5, 2024, for berdazimer gel 10.3%,” Paula Brown Stafford, MPH, president and CEO of Novan, said in the release.

“We have been evaluating our portfolio of assets for some time to determine the optimal path for a product, if approved, to treat molluscum contagiosum, an unmet medical need,” Stafford continued. “After careful consideration, we have made the strategic decision to implement a reduction in force of our commercial team and continue to explore a sale or out-license of our commercial assets.”

The possible sale or out-licensing of assets will include Rhofade, Minolira and Cloderm. The company reports that the reduction of operating expenses supporting these products will take place immediately.

The reduction of the workforce will impact 50% of employees, primarily in the sales division, according to the press release. Novan anticipates that its existing cash, cash equivalents and expected product sales will be able to fund operations till the end of June 2023.

The company will continue to sell and distribute Rhofade, Wynzora, Minolira and Cloderm in the U.S. while it explores financial alternatives.