Novan Reports Third Quarter 2016 Financial Results

MORRISVILLE, N.C., Nov. 14, 2016 (GLOBE NEWSWIRE) -- Novan, Inc. ("the Company" or "Novan") (NASDAQ:NOVN) today announced the Company's financial results for the third quarter of 2016. Total operating expenses for the three months ended Sept. 30, 2016, were approximately $17.5 million, which includes research and development, or R&D, expenses totaling approximately $15.0 million and general and administrative, or G&A, expenses totaling approximately $2.5 million. Total operating expenses for the three months ended Sept. 30, 2015, were approximately $5.6 million, which included R&D expenses totaling approximately $3.2 million and G&A expenses totaling approximately $2.4 million. The year-over-year increase in R&D expenses was due primarily to increased development costs related to the ongoing Phase 3 pivotal clinical trials for SB204.

Novan announced on Sept. 26, 2016, the closing of the Company's initial public offering, or IPO, of 4,715,000 shares of common stock at a price to the public of $11.00 per share, which included the exercise in full by the underwriters of their option to purchase from the Company an additional 615,000 shares of common stock. Net proceeds to the Company from the sale of the shares, after deducting underwriters' discounts and commissions and offering expenses, totaled approximately $44.6 million.

As of Sept. 30, 2016, Novan's cash and cash equivalents totaled approximately $55.7 million.

"We are pleased to announce the results of a productive quarter," said Nathan Stasko, PhD, President and Chief Executive Officer of Novan. "The completion of our IPO provided us additional capital to advance our unique platform of nitric oxide-releasing product candidates, progressing toward important development milestones in the coming months for three of our development programs. We expect to announce top-line results from our SB206 Phase 2 proof-of-concept trial before year end; from our SB204 Phase 3 pivotal trials in the first quarter of 2017; and from our SB208 Phase 2 proof-of-concept trial in the first half of 2017. We appreciate our stockholders' continued partnership in unlocking the value of our development platform to redefine the standard of care in our target markets."

If you liked this article you might like

The 'Gnarly 9' Biotechs Will Test the FDA's Mettle

Could These 9 Drugs Gain FDA Approval in the Age of Trump?

The 'Gnarly 9' Biotechs Will Test the FDA's Mettle

What's Next for Novan After Its IPO?

Novan Only Piercing the Skin of Its Potential Says CEO