Vical Raises $20M in Private Stock Placements
Vical (NASDAQ: VICL), the San Diego biotech developing a vaccine for the H1N1 swine flu, says it has raised about $20 million in private stock sales arranged with several institutional investors. The overall deal includes a $4.6 million commitment announced today from Special Situations Funds, a New York institutional investor.
The company says it is raising approximately $15.4 million from two other institutional investors, including the Pittsburgh, PA-based Federated Kaufmann Fund, through a related stock-and-options deal. Vical says Federated Kaufmann and Special Situations Funds are among the biotech’s largest stockholders, but the company did not identify its third investor.
Vical says it expects to receive net proceeds of approximately $18.9 million from the total offering after deducting fees and expenses from the deal. The company plans to use proceeds for ongoing programs and other general corporate purposes.
Vical said recently it has completed development of a prototype H1 vaccine, and taken the preliminary steps necessary to begin human clinical trials. Assuming that animal testing is successful, the company says it is ready to advance to large-scale manufacturing of the vaccine for human clinical trials to be conducted by the U.S. Navy. In a statement, Vical CEO Vijay Samant said, “The ongoing H1N1 influenza outbreaks remain a focal point of international discussions regarding the need for and feasibility of producing an H1 vaccine. We have already demonstrated the speed of our technology by producing an H1 vaccine and initiating animal testing while others are still assessing the situation.”