Novum Pharma has filed for chapter 11 protection. The case is pending in the Delaware bankruptcy court under Case #19-10209.
Novum is a Chicago-based pharmaceutical company specializing in topical dermatology products. It has rights to 3 branded prescription dermatology products: Alcortin A (a fast acting fungicide), Quinja (a fungicide), and Novacort (a first-line treatment for pruritic dermatoses… caused by external hemorrhoids). If you are a regular follower, you know I like to add graphics to my posts. But I’m going pass on the illustrations and just note that I would go with the fast-acting options.
Novum reports approximately $20 million in assets, $35 million in current liabilities, and $18 million in long-term liabilities. Its goal? Preserving assets and conducting a bankruptcy sale. It intends to seek approval of bidding and sale procedures “in the early weeks” of its Chapter 11 Case.
The company attributes the bankruptcy to “(i) manufacturing hurdles leading to production delays and product ‘stock-outs’; (ii) a dispute with Cardinal and CVS regarding the price at which the Dermatology Products can be returned to the Debtor; (iii) managed care actions leading to increased prescription rejection rates for the Dermatology Products; and (iv) market dilution and decreased total prescriptions due to unauthorized generic alternatives being introduced into the market.”
For more background, you can download Novum’s bankruptcy petition, its global declaration, or the agenda for its first hearing scheduled for February 5th at 2:30 p.m. Additional information about the case is available free of charge from their claims agent, KCC, here.