Durham’s Novan scales back IPO

Durham pharmaceutical startup Novan narrowed an expected stock price for its planned initial public offering and scaled back the total expected to be raised in the IPO. The skin products company has no products on the market and plans to use the money it raises in the IPO to finance development of its lead product from regulatory application to commercial sale in the United States.

The decade-old company said it expects to price its shares between $11 and $13, and expects to raise about $39 million from the sale of 3.75 million shares if they were sold at $12. The company had told the Securities and Exchange Commission last month it expected to raise about $60 million in the IPO.

Novan said in an SEC filing this week it could raise as much as $45.3 million if underwriters exercise in full their option to purchase additional shares.

Novan is developing dermatological products to treat five conditions, including acne, genital warts and toenail fungus.

The company, launched in 2006 as a spinout from UNC-Chapel Hill, is backed by prominent executives, including former GlaxoWellcome CEO Robert Ingram, former Goodyear Tire CEO Robert Keegan and F. Neal Hunter, the former CEO and co-founder of CREE, the Durham LED lighting company.

This story was originally published September 9, 2016 at 5:24 PM with the headline "Durham’s Novan scales back IPO."