Analyst: Chimerix Inc. Govt Smallpox Pact Worth Up To $435 Million

Chimerix Inc.'s

proposed government contract to produce up to 1.7 million doses of a treatment for smallpox could be worth up to $435 million, an analyst said Wednesday. The Durham, North Carolina-based company was awarded the sole-source, five-year contract Monday, although it would formally receive it until April 28 to verify that no other sources can supply the drug. https://www.fbo.gov/index?s=opportunity&mode=form&id=adc39285c4659164c0a0b19b09bc12d2&tab=core&_cview=0? "It's Chimerix's contract for the taking," according to Brean's Jonathan Aschoff who maintained a Buy rating and $45 target. Chimerix has 2014 revenue of $4 million. Chimerix has been working with the agency, the Biomedical Advanced Research and Development Authority, or Barda, since 2011 on developing its brincidofovir drug as a treatment for both smallpox as well as for cytomegalovirus, which is dangerous to newborn children. Barda, an arm of the U.S. Department of Health and Human Services, said a data package to support a new drug application for brincidofovir for the prevention of CMV is nearing completion. Chimerix has gained more than 3 percent since obtaining the contract and closed Wednesday at $38.26, down $0.39 cents.