BOULDER — A North Carolina venture firm has cut ties with Brickell Biotech Inc. (Nasdaq: BBI) over the latter’s ongoing federal lawsuit, putting its final clinical trial for a flagship drug in jeopardy.
In filings with the U.S. Securities and Exchange Commission Monday, the Boulder pharmaceutical company said it reached a settlement with NovaQuest Co-Investment Fund X LP to pay back $5.6 million in earlier financing at a 9 percent interest rate.
While Brickell disagreed that NovaQuest had the right to unilaterally terminate the agreement, the company decided to cancel the agreement to avoid a potentially lengthy legal battle, according to the filing.
NovaQuest originally made a commitment of up to $25 million in financing to Vical Inc., a San Diego oncology company. Brickell inherited that funding after closing a reverse merger with Vical in September.
In previous disclosures, Brickell said losing NovaQuest’s funding would impact its Phase III clinical trials for Sofpironium Bromide, an anti-underarm sweating gel and its proposed flagship drug.
Brickell was sued in late October by Miami-based Bodor Laboratories Inc., which alleged that Brickell had violated several terms of its sublicensing deal and tried to copyright Bodor’s intellectual property as its own. The two companies entered arbitration a week later.
Brickell later posted a $4.8 million loss in its first quarter after its debut on the market. The company currently doesn’t have products on the market, and its cash flow comes directly from collaboration deals and from NovaQuest’s payments.
Brickell’s stock closed Monday at $2.16 per share, a 3-cent increase over its starting price. The announcement was made after the end of trading.
BOULDER — A North Carolina venture firm has cut ties with Brickell Biotech Inc. (Nasdaq: BBI) over the latter’s ongoing federal lawsuit, putting its final clinical trial for a flagship drug in jeopardy.
In filings with the U.S. Securities and Exchange Commission Monday, the Boulder pharmaceutical company said it reached a settlement with NovaQuest Co-Investment Fund X LP to pay back $5.6 million in earlier financing at a 9 percent interest rate.
While Brickell disagreed that NovaQuest had the right to unilaterally terminate the agreement, the company decided to cancel the agreement to avoid a potentially lengthy legal battle, according to the filing.
NovaQuest originally made a commitment of up to $25 million in financing to Vical Inc., a San Diego oncology company. Brickell inherited that funding after closing a reverse merger with Vical in September.
In previous disclosures, Brickell said losing NovaQuest’s funding would impact its Phase III clinical trials for Sofpironium Bromide, an anti-underarm sweating gel and its proposed flagship drug.
Brickell was sued in late October by Miami-based Bodor Laboratories Inc., which alleged that Brickell had violated several terms of its sublicensing deal and tried to copyright Bodor’s intellectual property as its own. The two companies entered arbitration a week later.
Brickell later posted a $4.8 million loss in its first quarter after its debut on the market. The company currently doesn’t have products on the market, and its cash flow comes directly from collaboration deals and from NovaQuest’s payments.
Brickell’s stock closed Monday at…
This article has been intentionally blurred.
You must purchase a subscription to view the rest of this content.
Want to See More!?
OR
Start your subscription to BizWest, The Business Journal of the Boulder Valley and Northern Colorado, TODAY!
Print + Digital
$7/mo
billed monthly
- 1-month online access to BizWest.com which includes unlimited news stories, archived story access and interactive versions of monthly business journal.
- 1-month subscription to BizWest & all of the publications in print version.
Digital
$7/mo
billed monthly
- 1-month online access to BizWest.com which includes unlimited news stories, archived story access and interactive versions of monthly business journal.
Unlimited
$25/mo
billed annually
- 1-year online access to BizWest.com which includes unlimited news stories, archived story access and interactive versions of monthly business journal.
- 1-year subscription to BizWest & all of the publications in print version.
- 1-year premium online access to unlimited downloads from the BizWest Datastore!
Your promotional subscription will automatically renew at the full rate on the date of your subscription maturity. Reminder notices will be emailed before each auto-renewing payment to the email address on file. You may cancel at any time by calling (970) 232-3143 or emailing bdennis@bizwest.com. Your BizWest subscription also includes a complimentary subscription to the BizWest email newsletter, and you may easily unsubscribe from this at any time by emailing bdennis@bizwest.com.






