Novan Therapeutics, which is focused on development of new dermatology products, has closed on $50 million in new financing. The company lands a new investor and also adds two life science executives to its board.
Novan announced the new funding early Monday, noting that $10.3 million was raised last August.
According to an SEC filing, a total of 91 investors participated in the round. No minimum was set for investors to participate. The entire round is for equity, according to the filing.
The company says the new round was “oversubscribed,” the initial target for the round being $25 million.
New investor Malin Corporation led the round.
“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,” said Neal Hunter, the company’s founding investor and its chair. Hunter is a co-founder of Durham-based Cree.
“The funds secured will support Novan’s efforts to create impactful, first-in-class, nitric oxide-based healthcare solutions in a number of large market indications.”
Joining the board are G. Kelly Martin, former CEO of Elan, and Sean Murphy, a former head of corporate and business development at Abbott Laboratories.
Noted Martin in the announcement: “Novan has assembled a talented leadership team and generated key clinical proof of concept demonstrating the efficient and effective delivery of nitric oxide, a naturally occurring therapeutic agent with potentially broad application. Novan’s initial focus on the skin provides clear pathways for regulatory approval, while we as a team look to selectively expand Novan’s pipeline of programs in the clinic.”
W. Kent Greer, a retired partner at Ernst & Young, also joined the board.
Novan’s lead product SB204 is in late-stage testing as a treatment for acne.
