Chimerix Shares Jump After Smallpox Drug Supply Deal

By Dean Seal

Chimerix Inc. shares were up 19% to $2.58 on Monday after the company said it had signed a deal with the federal government to deliver up to 1.7 million smallpox treatment courses over the next 10 years.

The biopharmaceutical company said it reached the multi-year deal with the Biomedical Advanced Research and Development Authority, an office within the U.S. Department of Health and Human Services. The deal includes an initial procurement of 319,000 courses of its Tembexa treatment for about $115 million and options for future procurements.

The 10-year contract is valued at about $551 if the government exercises all of its options. It also supports $13 million in post-marketing activities for each procurement, giving the contract a potential value of up to $680 million, Chimerix said.

Tembexa is a two-dose oral regimen approved as a smallpox treatment for all ages, including infants.

"Our collaboration with BARDA for the development of Tembexa has provided the United States government with a second therapeutic option to ensure the federal government's readiness for a potential smallpox emergency," Chief Executive Mike Sherman said.

Write to Dean Seal at [e-mail]

(END) Dow Jones Newswires

August 29, 2022 11:42 ET (15:42 GMT)

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