Vical Inc. said its shareholders approved the company's merger with Boulder, Colo.-based pharmaceutical company Brickell Biotech Inc.
Brickell Biotech is a private company that develops 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.
Vical initially sought a merger with the medical dermatology company where Brickell was valued at $60 million, which would have resulted in existing shareholders of Vical and Brickell owning 40% and 60% of the combined company.
The company amended the terms of the deal and reduced the valuation of Brickell to $50.2 million Aug. 20. Based on the revised valuation, existing shareholders of Vical will own 49%, while Brickell shareholders will own 51% of the combined entity.
Shareholders of Vical have authorized the company's board to implement a 1-for-7 reverse split of common stock. The split is expected to be completed immediately before the completion of the merger.
San Diego-based Vical, which develops treatments for serious or life-threatening diseases using its DNA delivery technology, expects to close the transaction Aug. 31.
Vical will change its name to Brickell Biotech Inc. after the merger and expects to start trading on the Nasdaq Capital Market under the ticker symbol BBI on Sept. 3.
