Woodcliff Lake-based Timber Pharmaceuticals said May 18 that the company closed its merger with BioPharmX Corp. and that the combined entity had completed a private placement financing valued at $25 million.
The biopharmaceutical company, which is focused on developing and commercializing treatments for orphan dermatologic diseases, will operate under the Timber Pharmaceuticals name and trade on the small-cap NYSE American Market. As of 10:00 a.m. EDT on May 19, the shares were trading at $4.75.
Under the terms of the merger agreement, announced in January, all of Timber’s outstanding units were converted into common stock. At the time the deal was unveiled, the companies said that Timber members, including investors that were expected to carry out the financing, would own about 88.5 percent of the new entity, with BioParmX stockholders owning the rest. Other financial terms were not disclosed.
“With the completion of the $25 million financing that is expected to fund our two late stage product candidates through multiple key clinical development milestones, we believe Timber is well positioned for its transition into a public company,” Chief Executive Officer John Koconis said in a statement. “Timber’s business model which is focused on orphan dermatologic indications is currently conducting two Phase 2B clinical trials on two of our product candidates and we look forward to realizing the value of our pipeline to the benefit of all of Timber’s stakeholders.”
The company said it is developing non-systemic treatments for rare dermatologic diseases including congenital ichthyosis, tuberous sclerosis complex, and localized scleroderma.
BioPharmX had been based in Campbell, Calif.