Chimerix Inc (NASDAQ: CMRX) has received a $25.3 million contract agreement from the Public Health Agency of Canada for the procurement of TEMBEX (brincidofovir). The biopharmaceutical company will be responsible for the execution of the contract since it is likely to considerably take place before the closing of its proposed transaction with Emergent Biosolutions Inc.
Chimerix entered an agreement to sell TEMBEXA rights to Emergent Biosolutions
This second international procurement agreement highlights TEMEXA’s vital position as a medical countermeasure and the necessity of such drug types in strategic stockpiles for every age group. In June last year, the US FDA approved TEMBEXA as a medical countermeasure for smallpox. This month the company signed a definitive agreement to sell exclusive global brincidofovir rights, including TEMBEXA, to Emergent for $325M plus royalties.
CEO Mike Sherman said, “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, approved for smallpox, is likely to treat monkeypox, which is currently spreading worldwide. Already around 3,200 monkeypox cases have been confirmed globally.
Chimerix to continue receiving TEMBEXA sales revenue before the transaction closes
Before the Emergent transaction closes, Chimerix will receive any TEMBEXA (brincidofovir)-related revenues made abroad or in the United States that are unconnected to the BARDA purchasing contract. In addition, Chimerix will earn a 15% royalties on gross earnings related to foreign sales and a 20 percent royalties on total profit linked with US sales revenue exceeding 1.7 million treatment sessions of therapy for revenue generated following the conclusion of the agreement.
Before the transaction closes, several conditions should be met, including early termination or expiry of the relevant waiting timeframe as per the amended 1976 Hart-Scott-Rodino Antitrust Improvements Act (HSR Act). Other closing requirements include the execution of the expected purchase contract between Chimerix and BARDA and the receipt of necessary BARDA consent to sign a prenovation agreement with Emergent.
