DURHAM, N.C., Sept. 26, 2022 (GLOBE NEWSWIRE) -- Chimerix, Inc. (NASDAQ:CMRX), a biopharmaceutical company whose mission is to develop medicines that meaningfully improve and extend the lives of patients facing deadly diseases, today announced the closing of its sale of TEMBEXA to Emergent BioSolutions Inc. (EBS or Emergent).
"The closing of our sale of TEMBEXA to Emergent allows Chimerix to accelerate the value of this product while still participating in its longer-term potential. As we look ahead, our balance sheet is enhanced significantly to support the ongoing development of our oncology franchise. This includes ONC201 which has demonstrated durable responses and an attractive safety profile in a genetically defined population of patients with H3 K27M mutant high-grade glioma. This would represent the first approved therapy specifically targeting patients with this invariably lethal disease," said Mike Sherman, Chief Executive Officer of Chimerix.
EBS paid Chimerix $238 million at closing. The closing amount was subject to the terms of the agreement executed between Biomedical Advanced Research and Development Authority (BARDA) and Chimerix for the procurement of TEMBEXA. Additional future economics from the transaction include:
- Potential milestone payments of up to $124 million (up to $31 million for each of the remaining BARDA procurement options, due within 30 days of exercise);
- 15% royalty on gross profit from sales of TEMBEXA outside the U.S.;
- 20% royalty on gross profit from sales of TEMBEXA in the U.S. that are in excess of 1.7 million treatment courses; and
- Up to an additional $12.5 million upon achievement of certain developmental milestones.
Development and procurement of TEMBEXA have been supported in part with federal funds from BARDA, in the Administration for Strategic Preparedness and Response in the Department of Health and Human Services under Contracts HHSO100201100013C and 75A50122C00047.