DURHAM, North Carolina, June 23, 2022 (GLOBE NEWSWIRE) — Chimerix (NASDAQ: CMRX), a biopharmaceutical company whose mission is to develop medicines that significantly improve and extend the lives of patients facing life-threatening diseases, today announced a $9.3 million deal to procure TEMBEXA® (brincidofovir) with a third party outside of North America, with permission from the relevant health authority. Chimerix expects to promptly supply TEMBEXA treatment courses equivalent to the full value of the supply contract. The performance of this contract will be the responsibility of Chimerix, as it is expected to occur prior to the closing of the pending transaction with Emergent BioSolutions, Inc. (Emergent).
“This supply agreement underscores the utility of TEMBEXA as a medical countermeasure and the importance of addressing the longer-term need to maintain strategic stocks for potential pandemics,” said Mike Sherman, President- CEO of Chimerix. “Through this contract, we will still be able to meet our expected obligations associated with a potential contract with the US Biomedical Advanced Research and Development Authority (BARDA) and initial delivery into the US Strategic National Stockpile.”
TEMBEXA is a medical countermeasure approved for smallpox by the United States Food and Drug Administration (FDA) in June 2021. In June 2022, Chimerix entered into a definitive agreement with Emergent to sell Chimerix’s exclusive worldwide rights to the brincidofovir, including TEMBEXA, for up to $325 million. more royalties. Any revenue associated with TEMBEXA (brincidofovir) earned prior to the closing of the Emergent transaction, and that is not related to the BARDA supply contract (i.e., other U.S. revenue or international revenue), will accrue to Chimerix . For revenue generated after closing of the transaction, Chimerix will receive a 15% gross profit royalty associated with international revenue and a 20% gross profit royalty associated with U.S. revenue from sales exceeding 1.7 million treatments therapies. Several conditions are required for the transaction with Emergent to complete, including the expiration or early termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (HSR ). Additional closing conditions include execution of an advance supply agreement between BARDA and Chimerix as well as receipt of any required consents from BARDA to a pre-novation agreement to be entered into with Emergent.
Chimerix is a biopharmaceutical company whose mission is to develop medicines that significantly improve and extend the lives of patients facing life-threatening diseases. The Company’s most advanced clinical-stage development program, ONC201, is being developed for the K27M-mutant H3 glioma.
Chimerix cautions you that statements included in this report that are not a description of historical facts are forward-looking statements. Words such as “anticipate”, “expect”, “intend”, “plan”, “believe”, “seek”, “estimate”, “will”, “should”, “could” , “could”, “could” and similar expressions also identify forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding the supply agreement and the provision of treatment courses under the agreement, the potential benefits of the transaction with Emergent to the operations and financial condition of Chimerix, the ability of the parties to complete the transactions contemplated under the asset purchase agreement (APA) between Emergent and Chimerix, the satisfaction of the conditions associated with the transaction, the ability of the parties to meet expectations regarding the timing and the completion of the transaction, and Chimerix’s expectations regarding the completion of, and payments to be made from, the transaction. The inclusion of forward-looking statements should not be taken as a representation by Chimerix that any of these results will be achieved. Actual results may differ from those presented in this report due to risks and uncertainties associated with market conditions, timing of satisfaction of obligations under the APP, if any, and inherent risks and uncertainties. Chimerix’s business, including those described in other filings by Chimerix with the Securities Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and the Company undertakes no obligation to revise or update this report to reflect events or circumstances. after the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement. This disclaimer is made pursuant to the safe harbor provisions of Section 21E of the Private Securities Litigation Reform Act of 1995.
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