Biopharmaceutical Co Vical Prices 13.3M Share Offering At 12% Discount

Biopharmaceutical developer Vical Inc.'s (VICL) public offering of 13.3 million shares priced at a 12% discount from Thursday's close.

Shares were recently trading at $3.79, slightly above the offering price of $3.75.

Vical develops gene-based treatments for cancer as well as vaccines for infectious diseases. Last year, it signed a $130 million licensing deal with Japan's Astellas Pharma Inc. (4503.TO, ALPMY) to develop and sell its TransVax cytomegalovirus vaccine. Like many development-stage drug makers, it posts frequent losses.

The company, which had about 73.7 million outstanding shares as of Nov. 1, outlined plans to offer stock late Thursday but didn't detail how many shares it intended to offer.

The firm expects to use the proceeds for general corporate purposes, including clinical trial expenses, research and development and other working capital.

In November, Vical said it swung to a third-quarter profit on a large increase in license and royalty revenue.

-By Ben Fox Rubin, Dow Jones Newswires; 212-416-3108; [e-mail];