Chimerix Announces TEMBEXA Procurement Agreement for Approximately $25.3 Million with Public Health Agency of Canada

Rhea-AI Summary

Chimerix (NASDAQ:CMRX) announced a contract worth up to $25.3 million from the Public Health Agency of Canada for the procurement of TEMBEXA (brincidofovir). This agreement underscores the significance of TEMBEXA as a medical countermeasure. The delivery is expected to take place before Chimerix's pending transaction with Emergent BioSolutions. TEMBEXA is approved for smallpox and Chimerix will earn revenues before closing the Emergent deal and a 15%-20% royalty on future sales. The transaction's completion requires several conditions, including regulatory approvals.

Positive

• Secured contract worth up to $25.3 million for TEMBEXA procurement.
• Reinforces TEMBEXA's role as a key medical countermeasure.
• Potential revenue from the multi-million dollar agreement.
• Chimerix set to receive royalties (15%-20%) post-Emergent deal.

Negative

• Transaction with Emergent contingent on multiple regulatory approvals.
• Risks associated with the satisfaction of contractual obligations.

DURHAM, N.C., June 24, 2022 (GLOBE NEWSWIRE) -- Chimerix (NASDAQ:CMRX), a biopharmaceutical company whose mission it is to develop medicines that meaningfully improve and extend the lives of patients facing deadly diseases, today announced Public Health Agency of Canada awarded Chimerix a contract up to $25.3 million agreement to procure TEMBEXA^® (brincidofovir). Execution of this contract will be the responsibility of Chimerix, as it is expected to substantially occur prior to the close of the pending transaction with Emergent BioSolutions, Inc. (Emergent).

“This second international procurement contract highlights TEMBEXA’s important role as a medical countermeasure and the need to have these types of medicines in strategic stockpiles for all age groups,” said Mike Sherman, Chief Executive Officer of Chimerix. “With this new procurement, we are still on track to deliver the expected obligations associated with a potential U.S. Biomedical Advanced Research and Development Authority (BARDA) contract and initial delivery into the U.S. Strategic National Stockpile later this year.”

TEMBEXA is a medical countermeasure approved for smallpox by the U.S. 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 brincidofovir including TEMBEXA, for up to $325 million plus royalties. Any revenue associated with TEMBEXA (brincidofovir) earned prior to closing of the Emergent transaction, and which is unrelated to the BARDA procurement contract (i.e., other U.S. revenue or international revenue), will accrue to Chimerix. For revenue earned after the close of the transaction, Chimerix will receive a 15% royalty on gross profit associated with international revenue and a 20% royalty on gross profit associated with U.S. revenue from sales in excess of 1.7 million treatment courses of therapy. There are several conditions required for the transaction with Emergent to close, including the expiration or early termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (HSR Act).   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.

About Chimerix
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.

Forward-Looking Statements
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,” “would,” “could,” “may” and similar expressions also identify forward-looking statements. These forward-looking statements include, without limitation, statements regarding the procurement agreement and the delivery of treatment courses under the agreement, the potential benefits of the transaction with Emergent to Chimerix’s operations and financial position, the parties’ ability to consummate the transactions contemplated under the asset purchase agreement (APA) between Emergent and Chimerix, satisfaction of conditions in connection with the transaction, the parties’ ability to meet expectations regarding the timing and completion of the transaction, and Chimerix’s expectations with regard to completion of, and payments to be received from, the transaction. The inclusion of forward-looking statements should not be regarded as a representation by Chimerix that any of these results will be achieved. Actual results may differ from those set forth in this report due to the risks and uncertainties associated with market conditions, the timing of the satisfaction of the obligations under the APA, if at all, as well as risks and uncertainties inherent in Chimerix’s business, including those described in Chimerix’s other filings 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 caution is made under the safe harbor provisions of Section 21E of the Private Securities Litigation Reform Act of 1995.

Contacts:

Investor Relations:
Michelle LaSpaluto
(919) 972-7115
ir@chimerix.com

Will O’Connor
Stern Investor Relations
Will@sternir.com
212-362-1200

FAQ

What contract did Chimerix announce on June 24, 2022?

Chimerix announced a contract worth up to $25.3 million with the Public Health Agency of Canada for TEMBEXA (brincidofovir) procurement.

What is TEMBEXA and why is it significant?

TEMBEXA is a medical countermeasure approved for smallpox and is crucial for strategic stockpiling.

How much royalty will Chimerix earn from TEMBEXA sales?

Chimerix will earn a 15% royalty on international sales and a 20% royalty on U.S. sales exceeding 1.7 million treatment courses after the Emergent transaction.

What challenges does Chimerix face regarding the Emergent transaction?

The transaction with Emergent is subject to several conditions, including regulatory approvals and the expiration of the HSR Act waiting period.

When was TEMBEXA approved by the FDA?

TEMBEXA was approved by the FDA in June 2021.