Biopharma firm Chimerix has announced the Public Health Agency of Canada has awarded the company a contract of up to C$25.3 million (US$32.6 million) to procure TEMBEXA (brincidofovir).
Execution of the contract will be the responsibility of Chimerix, as it is expected to substantially occur prior to the close of the pending transaction with Emergent BioSolutions, Inc.
“This second international procurement contract highlights TEMBEXA’s important role as a medical countermeasure and the need to have these types of medicines in strategic stockpiles for all age groups,” said Mike Sherman, CEO of Chimerix.
“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.”
$325M deal
TEMBEXA is a medical countermeasure approved for smallpox by the U.S. Food and Drug Administration (FDA) in June 2021. In June 2022, Chimerix entered into a definitive agreement with Emergent to sell Chimerix’s exclusive worldwide rights to brincidofovir including TEMBEXA, for up to $325 million plus royalties.
Any revenue associated with TEMBEXA (brincidofovir) earned prior to closing of the Emergent transaction, and which is unrelated to the BARDA procurement contract (i.e., other U.S. revenue or international revenue), will accrue to Chimerix.
For revenue earned after the close of the transaction, Chimerix will receive a 15% royalty on gross profit associated with international revenue and a 20% royalty on gross profit associated with U.S. revenue from sales in excess of 1.7 million treatment courses of therapy.
There are several conditions required for the transaction with Emergent to close, including the expiration or early termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (HSR Act).
Additional closing conditions include the execution of an anticipated procurement contract between BARDA and Chimerix as well as receipt of any required consent from BARDA to a pre-novation agreement to be entered into with Emergent.