Why Are Novan Shares Nosediving Today?
Portfolio Pulse from Vandana Singh
Novan Inc (NOVN) shares are trading lower after Ligand Pharmaceuticals Incorporated (LGND) offered to acquire the company's assets. The deal includes $15 million in cash and up to $15 million in DIP financing. Novan has filed for Chapter 11 reorganization and has entered into a stalking horse acquisition offer with Ligand. The transaction aims to preserve and maximize the value of Novan's commercial business and berdazimer gel development assets. Novan's shares are down 68.1% at $0.20.
July 17, 2023 | 2:25 pm
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NEGATIVE IMPACT
Novan's shares are trading lower after Ligand Pharmaceuticals offered to acquire its assets. The company has filed for Chapter 11 reorganization and its shares are down 68.1%.
The news of Ligand Pharmaceuticals' offer to acquire Novan's assets and Novan's filing for Chapter 11 reorganization has negatively impacted Novan's share price. Investors are likely concerned about the company's financial stability, leading to a drop in share price.
CONFIDENCE 100
IMPORTANCE 100
RELEVANCE 100
NEUTRAL IMPACT
Ligand Pharmaceuticals has offered to acquire Novan's assets. If successful, Ligand will acquire Novan's assets and seek to out-license or sell the existing development programs and commercial business assets of Novan.
Ligand Pharmaceuticals' offer to acquire Novan's assets could potentially expand its portfolio and increase its revenue in the future. However, the impact on its share price in the short term is uncertain as the deal is still in progress and depends on the success of the acquisition.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100