Biotech Values

[DewDiligence]

CMRX -61% on sale of smallpox antidote, Tembaxa (brincidofovir), to EBS for $225M up-front cash—and other bad news:

https://www.globenewswire.com/news-release/2022/05/16/2443624/33240/en/Emergent-BioSolutions-to-Acquire-from-Chimerix-its-Exclusive-Worldwide-Rights-to-TEMBEXA-brincidofovir-the-First-FDA-Approved-Smallpox-Oral-Antiviral-for-All-Ages.html

Under the terms of the agreement, Emergent will pay Chimerix a $225 million one-time upfront payment in cash upon closing and up to a total of $100 million in milestone payments contingent on the potential exercise by the U.S. government of procurement options following the base period. The closing payment and the milestone payments may be adjusted based on the actual procurement value.

Two years ago, CMRX terminated all brincidofovir development other than the smallpox program (#msg-148708224); hence, CMRX investors are presumably disappointed by the low price tag of today’s deal.

Moreover, CMRX had bad news nestled in its 1Q22 financial PR (https://finance.yahoo.com/news/chimerix-reports-first-quarter-2022-110000593.html ):

We continue our engagement with the U.S. Food and Drug Administration (FDA) regarding the development of ONC201. While we have not yet requested formal feedback on a potential NDA submission for accelerated approval, communication from the FDA makes it clear that the potential for accelerated approval is more challenging than previously anticipated. …As such, we are prioritizing the initiation of a randomized Phase 3 study by year-end.