Brickell Biotech closes Vical merger, makes Nasdaq debut

BOULDER  — Brickell Biotech Inc. (Nasdaq: BBI) completed its reverse stock split and merger with San Diego-based Vical Inc., allowing it to list on the Nasdaq exchange.

The Boulder pharmaceutical company will eschew Vical’s gene-therapy focus and use its resources to work solely on therapies for skin conditions, according to filings with the U.S. Securities and Exchange Commission.

Brickell’s primary drug candidate is sofpironium bromide, a topical treatment for excessive sweating. The drug is registered to begin two separate Phase III trials with the U.S. Food and Drug Administration, both expected to begin in the fourth quarter of 2019.

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In a reverse merger, a private company acquires a public company and combines the two entities, bypassing the traditional initial public offering process but potentially causing a selloff in the new stock.

Vical and Brickell agreed to merge in early June, splitting ownership in the new company to 44 percent of former Vical stockholders and 56 percent to Brickell’s backers.

Brickell also inherits Vical’s previous funding agreement with North Carolina-based NovaQuest Co-Investment Fund LP, which could provide up to $25 million over the course of several milestone payments. NovaQuest will immediately pay out $5.6 million in initial funding.

The combined company had $41,194,000 in cash and liquid securities as of June 30, according to pro forma financial statements.

Brickell stock debuted at $4.73 per share at market open and fell slightly to close the day’s trading at $4.69.

This story has been updated to reflect Brickell’s share price at the end of trading Tuesday.