Novan's Arm Signs License Deal With Japan's Sato Pharma For Rhofade; NOVN Stock Up In Pre-market

(RTTNews) - Novan, Inc. (NOVN), a drug maker focused on skin diseases, said on Wednesday that its subsidiary EPI Health, LLC, has signed an exclusive license deal with the Japanese firm Sato Pharmaceutical Co., Ltd. allowing it to develop, manufacture, and market Rhofade- oxymetazoline hydrochloride 1 percent cream, for Rosacea in Japan.

Rosacea is a common skin condition that reflects blushing or flushing and visible blood vessels in the human face.

According to the deal, EPI Health will receive an upfront payment of $5 million. It will also obtain a $2.5 million milestone payment at the time of marketing approval in Japan, and royalty payments on net sales of the product in the Asian country.

Sato will be responsible to receive regulatory approval in Japan and will have the right to access EPI Health's U.S. dossier for Rhofade. The Japanese company will also have a right of first negotiation related to Rhofade in certain other countries of the Asia Pacific region.

Paula Brown Stafford, CEO of Novan, said: "We are committed to growing our revenue-generating product portfolio and believe the expansion of our commercial initiatives for RHOFADE into Japan represents a promising opportunity…"

NOVN was trading up by 8.62 percent at $1.26 per share in pre-market on the Nasdaq.