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Vical amends proposed merger with medical dermatology company

Vical Inc. amended the terms of its merger deal with privately held Brickell Biotech Inc. and reduced the valuation of Brickell to $50.2 million from $60 million.

Based on the revised valuation, existing shareholders of Vical and Brickell will own 49% and 51% of the combined company, respectively.

The amended deal also fixed the assumed share price of Brickell and Vical outstanding shares at $0.79 and $1.35, respectively.

Additionally, the companies revised the minimum Brickell negative net working capital condition to $14.3 million from $11.5 million and the range of its closing negative net working capital in between $14.8 million and $13.8 million.

Brickell Biotech is a Boulder, Colo.-based pharmaceutical company developing prescription therapeutics to treat skin diseases. The company's drug pipeline includes potential treatments for excessive sweating or hyperhidrosis, cutaneous T-cell lymphoma, psoriasis and other prevalent severe skin diseases.

The merged entity will operate as Brickell Biotech Inc. and trade on the Nasdaq Capital Market under a new ticker.

MTS Health Partners LP and Cooley LLP are the financial and legal counsel to Vical. Meanwhile, BMO Capital Markets is the financial adviser of Brickell, with Mayer Brown LLP as legal counsel.

San Diego-based Vical researches and develops treatments for serious or life-threatening diseases using its DNA delivery technologies.