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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