Novum Pharma Files for Chapter 11 Bankruptcy - (The Wall Street Journal via NewsPoints Desk)

  • Novum Pharma has filed for bankruptcy and sought to offload assets, The Wall Street Journal reported.

  • According to the filing, the drugmaker has $19.4 million in assets and about $53 million in liabilities.

  • "The prescription rejection rate for the dermatology products has reached a point that makes it impossible for the debtor to sustain its business, given the significant and lasting damage to the business due to the manufacturing issues and Cardinal/CVS return dispute," explained chief restructuring officer Thomas O'Donoghue.

  • The news comes after Novum faced scrutiny over price increases, with a Senate report indicating that the price of one of its skin gels surged from $189 to $7968.

  •  According to Connecture, the price increase occurred between January 2015 and September 2016.

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