Novan Therapeutics, a US-based dermatology treatment developer backed by life sciences company Malin Corporation, filed for an initial public offering on Wednesday and is aiming to raise up to $60m.
Founded in 2008 as a spinout of University of North Carolina at Chapel Hill, Novan is working on dermatology treatments that will use nitric oxide to regulate skin inflammation. It is developing treatments for five separate dermatological conditions.
The proceeds will be used to advance Novan’s lead product candidate, a topical gel treatment for acne called SB204, through to the submission of a new drug application. It passed into two phase 3 clinical trials in the first quarter of 2016, and Novan expects to report results early next year.
Additional cash will support phase 2 trials for SB206, an anti-viral gel to combat skin infections like genital and perianal warts, and SB208, which is intended to treat fungal infections for skin and nails.
Novan has raised approximately $103m in VC funding, including $50m in a March 2015 round that included Malin, and a $30.4m round in December.
Malin is Novan’s largest shareholder and owns a 16.25% stake. The other shareholders with stakes larger than 5% are all present or past executives.
Piper Jaffray, JMP Securities and Wedbush Securities have been appointed underwriters for the IPO, which will take place on Nasdaq.