Brickell posts $4.8M loss in first quarter after merger

BOULDER — Brickell Biotech Inc. (Nasdaq: BBI) posted $4.78 million in losses in its first quarter after going public via a reverse merger and initial public offering.

The Boulder dermatology company posted $1.18 million in collaboration revenue in its third quarter 2019 earnings Wednesday afternoon, but took a $1.65 per share loss in the period. That was likely due to spending $3.9 million in administrative expenses to close the merger, compared to $1.2 million during the same period last year.

Brickell originally went public in early September after closing its reverse initial public offering and takeover of San Diego-based Vical Inc.

The company has been embroiled in a federal lawsuit since late last month by its former collaborator Bodor Laboratories Inc., which alleges Brickell illegally sublicensed Bodor intellectual property and applied for a patent using the Miami-based company’s research.

Brickell has vowed to fight the suit. However, one of its largest funders suspended its milestone payments to Brickell due the suit, which would be worth up to $25 million total over the course of the deal. The company said that loss of funding could impact its Phase III clinical trials for Sofpironium Bromide, an anti-underarm sweating gel.

The company has $7.22 million in cash and liquid assets on hand, but also has up to $18.47 million in securities for sale as a fundraising option.

Brickell stock was unaffected by the after-hours earnings release, closing Wednesday’s trading period at $2.19 per share.

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