Novan Acquires EPI Health To Bolster Commercial Force For Potential Marketing Of Its lead Products

Novan Inc NOVN has acquired EPI Health LLC, a specialty pharmaceutical company focused on the U.S. dermatology market.
EPI Health offers a product portfolio that includes four prescription products across psoriasis, rosacea, dermatosis, and acne, with a 2021 operating revenue of $17.6 million.
Deal consideration of $27.5 million consists of $11.0 million in cash and $16.5 million in a seller's note with a 24-month term.
Based on the financial performance of EPI's products and the occurrence of other events, Novan will pay up to an additional $23.5 million in potential future milestone payments in cash or stock.
"As we prepare for the planned NDA submission of our lead product candidate, SB206 (berdazimer gel 10.3%), it was imperative that we evaluate a broad spectrum of options for potential commercialization. This acquisition creates a robust commercial infrastructure for Novan, and I believe sets the stage for the future success of the Company," commented Paula Brown Stafford, Chairman and Chief Executive Officer of Novan.
Novan will employ approximately 100 staff following the acquisition, including sales personnel currently covering 42 sales territories in the U.S.
Price Action: NOVN shares are up 1.74% at $3.57 during the market session on the last check Friday.