Novan’s EPI Health enters exclusive license agreement with Sato for RHOFADE

Novan announced that EPI Health, a fully consolidated subsidiary of Novan, has entered into an exclusive license agreement with Sato Pharmaceutical granting Sato the right to develop, manufacture and market RHOFADE for rosacea in Japan. "Since 2017, our relationship with Sato has been a valuable component of our strategy and we are pleased to further deepen and expand our partnership with Sato through this license agreement. 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," commented Paula Brown Stafford, President and Chief Executive Officer of Novan. Under the exclusive license agreement, EPI Health will receive an upfront payment of $5M, a $2.5M milestone payment at the time of marketing approval in Japan, and royalty payments on net sales of the product in Japan. Sato will be responsible for obtaining regulatory approval in Japan and will have the right to access EPI Health’s U.S. dossier for RHOFADE. Sato will also have a right of first negotiation related to RHOFADE in certain other countries in the Asia Pacific region. A portion of the amounts of the upfront and milestone payments are payable by EPI Health to a third party under contractual obligations related to RHOFADE.