Chimerix Awarded BARDA Contract for TEMBEXA as Medical Countermeasure for Smallpox
- Initial Procurement of 319,000 Treatment Courses for
- Emergent BioSolutions, Inc. Payment Increases to
“Our collaboration with BARDA for the development of TEMBEXA has provided
In May, Chimerix entered into an agreement with Emergent BioSolutions, Inc. (EBS) for the sale of worldwide rights to TEMBEXA for $225 million upfront and potential additional milestones of up to $100 million (the Transaction was subject to adjustment upon finalization of a procurement agreement for TEMBEXA with BARDA). Based on the terms of the final BARDA agreement, EBS is expected to pay
- Upfront payment of
$238 millionupon the signing of the pre-novation agreement;
- Potential milestone payments of up to
$124 million(up to $31 millionfor each of the remaining BARDA procurement options due within 30 days of exercise);
- 15% royalty on gross profit from sales of TEMBEXA outside the
- 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 millionupon achievement of certain developmental milestones.
Closing of the Transaction remains subject to BARDA’s approval of a pre-novation agreement between
Chimerix is a biopharmaceutical company with a mission to develop medicines that meaningfully improve and extend the lives of patients facing deadly diseases. The Company’s most advanced clinical-stage development program, ONC201, is in development for H3 K27M-mutant glioma.
TEMBEXA (brincidofovir) is a nucleotide analog lipid-conjugate designed to mimic a natural monoacyl phospholipid to achieve effective intracellular concentrations of the active antiviral metabolite, cidofovir diphosphate. Cidofovir diphosphate exerts its orthopoxvirus antiviral effects by acting as an alternate substrate inhibitor for viral DNA synthesis mediated by viral DNA polymerase.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Forward-looking statements include those relating to, among other things, procurements under the BARDA contract, the consummation of the Transaction, and potential future payments under the Transaction. Among the factors and risks that could cause actual results to differ materially from those indicated in the forward-looking statements are risks that the Transaction will not be completed as planned, including as a result of failing to satisfy the closing conditions to the Transaction; risks that the initial delivery or any subsequent deliveries of TEMBEXA will not occur as planned, or at all; risks that future payments under the Transaction will not be made; and additional risks set forth in the Company's filings with the Securities and Exchange Commission. These forward-looking statements represent the Company's judgment as of the date of this release. The Company disclaims, however, any intent or obligation to update these forward-looking statements.
Stern Investor Relations
Source: Chimerix, Inc.