Chimerix Sells Smallpox Countermeasure to Emergent to Focus on Rare Cancer Drug Development
May 18, 2022
Chimerix said it has sold exclusive worldwide rights to its FDA-approved medical countermeasure for smallpox, Tembexa, to Emergent BioSolutions for up to $337.5 million plus royalties.
The funding will allow Chimerix to support its most advanced clinical-stage program, ONC201, which is in development for H3 K27M-mutant glioma.
Tembexa (brincidofovir) was approved by the U.S. Food and Drug Administration in June 2021 for the treatment of smallpox for adult and pediatric patients and is the first and only smallpox therapy approved for neonates. The oral suspension formulation is particularly important for patients who have difficulty swallowing due to age or medical status.
“Emergent is an ideal partner to maximize the long-term potential of Tembexa to ensure pandemic preparedness in the event of a smallpox recurrence,” said Mike Sherman, CEO of Chimerix. “This transaction significantly enhances Chimerix’s balance sheet and allows us to focus and invest in our development pipeline. We also continue to participate in the longer-term economics of Tembexa through U.S. milestones and double-digit royalties from U.S. and international revenues.”
Terms of the agreement with Emergent anticipate a Tembexa procurement contract with Biomedical Advanced Research and Development Authority (BARDA). Chimerix is currently in negotiations with BARDA for a procurement contract relating to Tembexa and will continue to lead the process through its conclusion.
Under the terms of the agreement with Emergent, Chimerix will receive $225 million upon closing of the transaction plus up to $100 million in up to four $25 million milestone payments. Each milestone payment is contingent upon the exercise of future BARDA procurement options of Tembexa following the base period. The closing payment and the milestone payments may be adjusted based on actual procurement value. Chimerix is also eligible to receive up to $12.5 million in regulatory milestones associated with the SymBio Pharmaceuticals brincidofovir partnership to be assumed by Emergent.
Chimerix may also earn a 20 percent royalty on future gross profit of Tembexa in the United States associated with volumes above 1.7 million treatment courses of therapy during the exclusivity period of Tembexa. Outside of the United States, the agreement also allows Chimerix to earn a 15 percent royalty on all gross profit associated with Tembexa sales during the exclusivity period of Tembexa on a market-to-market basis.
Additional closing conditions include the execution of an anticipated procurement contract between BARDA and Chimerix as well as receipt of any required consent from BARDA to a pre-novation agreement to be entered into with Emergent. Subject to the satisfaction or waiver of the closing conditions, the companies expect the transaction may close as early as the second quarter of 2022.
Author: Rare Daily Staff
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