Boulder’s Brickell Biotech to absorb CA firm

BOULDER — Brickell Biotech Inc., a Boulder-based clinical-stage medical dermatology company, has entered into an agreement to merge with Vical Inc.(NASDAQ:VICL), a San Diego biopharmaceutical firm.

“The merger would create a pharmaceutical company focused on developing novel and differentiated prescription therapies addressing unmet patient needs in hyperhidrosis, cutaneous T-cell lymphoma, psoriasis, and other debilitating dermatologic disorders,” according to a joint news release from Brickell and Vical.

The merger is an all-stock deal in which existing Brickell stockholders will own 60 percent of the combined company, and Vical stockholders will own the remainder. The ownership split is based on a $60 million valuation for Brickell and a $40 million valuation for Vical.

The deal is expected to close in the third quarter of 2019.

After the close, the combined company will be headquartered in Boulder. The firm will be led by Brickell’s current management team, including CEO Robert Brown. It will be a public company traded on the Nasdaq exchange under a ticker symbol to be determined.

NovaQuest Capital Management LLC has agreed to provide $25 million in near-term research and development funding to Brickell following the merger.

“We are excited about the opportunities created by this merger as we expect it to provide us with the funding to complete our two planned pivotal Phase 3 trials of sofpironium bromide in patients axillary hyperhidrosis, with topline data expected in [the fourth quarter of 2020],” Brown said in a prepared statement. “In addition, the strong closing balance sheet would allow Brickell to further develop our key pipeline assets for the treatment of other skin diseases.”

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