Chimerix Shares Plummet After Divesting Its Only Marketed Product For Over $300M - Chimerix (NASDAQ:CMRX)

Emergent BioSolutions Inc EBS has agreed to acquire Chimerix Inc's CMRX exclusive worldwide rights to Tembexa (brincidofovir), the first FDA-approved antiviral for all age groups for smallpox.
"It exemplifies our thoughtful M&A strategy as part of our 2024 growth plan and positions us better to deliver value for our shareholders," said Robert Kramer, president & CEO of Emergent.
Also See: Chimerix's CMX521 Antiviral Program Shows Potential Against COVID-19 In Preclinical Studies.
"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," said Paul Williams, SVP government/MCM business at Emergent.
"It is expected to be accretive upon first product delivery under the anticipated BARDA contract within three to six months from closing," Williams added.
Emergent will pay Chimerix a $225 million one-time upfront payment in cash upon closing and up to $100 million in milestone payments contingent on the potential exercise by the U.S. government of procurement options.
Emergent closed the March quarter with a cash balance of $435.8 million.
Chimerix remains eligible to receive a portion of the regulatory milestone payments associated with the license to SymBio Pharmaceuticals Ltd for indications other than orthopoxvirus infections.
Price Action: CMRX shares plunge 57.1% to $1.82 during the market session on the last check Monday.

Market News and Data brought to you by Benzinga APIs