Chimerix is expected to receive $225m as a one-time upfront payment and is eligible to receive a total of $100m in milestone payments, in addition to sales-based royalties
Emergent to acquire rights to Chimerix’s Tembexa to treat smallpox. (Credit: Towfiqu barbhuiya on Unsplash)
Emergent BioSolutions has agreed to acquire exclusive global rights to Tembexa (brincidofovir), a prescription smallpox disease medicine, from Chimerix.
Under the terms of the licence agreement, Chimerix is expected to receive $225m as a one-time upfront payment in cash, upon closing of the transaction.
The company is also eligible to receive a total of $100m in milestone payments, in addition to sales-based royalties based on potential procurement of the drug in the future.
Chimerix continues to hold the right to receive a fraction of the milestone payments for indications other than orthopox infections, related to the SymBio Pharmaceuticals license.
The transaction is expected to close at the end of the second quarter of 2022, subject to customary closing conditions, including the expiration of the waiting period under the HSR Act.
Emergent intends to fund the transaction using its currently available cash flow.
Emergent president and CEO Robert Kramer said: “The addition of TEMBEXA to Emergent’s portfolio of medical countermeasures builds upon our core capabilities and leverages our long and successful history of partnering with the U.S. government to address dangerous public health threats.
“It exemplifies our thoughtful M&A strategy as part of our 2024 growth plan and positions us better to deliver value for our shareholders.”
Chimerix is a biopharmaceutical company focused on developing medicines for the treatment of patients living with cancers and other life-threatening diseases.
Tembexa is an oral antiviral formulated as 100mg tablets and 10mg/mL oral suspension dosed once weekly for two weeks, to treat smallpox disease.
In June last year, the company obtained the US Food and Drug Administration (FDA) approval for the drug to treat human smallpox disease in patients of all age groups.
The FDA approval was based on efficacy data in two lethal orthopoxvirus animal models of human smallpox disease, the rabbitpox model and the mousepox model.
Furthermore, the transaction is subject to the execution of a procurement contract by the Biomedical Advanced Research and Development Authority (BARDA), which is expected in the second quarter of this year.
Emergent MCM business SVP Paul Williams said: “This transaction expands and further diversifies our medical countermeasures business with the addition of a small molecule therapeutic that aligns with the government’s smallpox preparedness strategy.
“It is expected to be accretive upon first product delivery under the anticipated BARDA contract within three to six months from closing.”