Novan Stock Halted On News Of 'discordant' Statistical Significance Among Two Late-stage Acne Drug Trials

By Emma Court Markets MarketWatch Pulse

Novan Inc. shares were halted in pre-market trade Friday before the company said two phase 3 clinical trials for its topical acne treatment had different results, with one showing statistical significance for all three co-primary endpoints but another showing significance on only one. Chief Executive Officer Nathan Stasko said the company was "pleased" with the successful trial but "disappointed with the discordant results" of the other trial. The company hasn't yet received the full data set but will provide an update on the acne drug program after more analysis, he said. Cash on hand should fund operations through the end of 2017, with capital allocation depending on the complete analysis of the latest results and other data, the company said. Novan shares have sunk 10.5% over the last three months, compared with a 7.7% rise in the S&P 500 .

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