Chimerix surges on supply deal with U.S. govt for smallpox drug
29/08/2022 16:22
** Chimerix Inc's shares CMRX.O surge 22.6% to $2.65 - set
for their biggest one-day pct gain since January 2021
** Co says it signed a contract with U.S. govt for the
delivery of up to 1.7 mln treatment courses of its drug TEMBEXA
in preparation for a potential smallpox emergency urn:newsml:reuters.com:*:nGNX9ZFX42
** The 10-year contract includes an initial procurement of
319,000 treatment courses for about $115 mln, company says
** There are also options for future procurements,
potentially valuing the contract at about $551 mln, if the govt
chooses to exercise the option - CMRX
** In May, Emergent BioSolutions EBS.N agreed to pay $225
mln upfront for worldwide rights to TEMBEXA, which is
FDA-approved for the treatment of smallpox
** Based on the U.S. contract, CMRX says EBS is now expected
to make an upfront payment of $238 mln
** Up to Friday's close, stock down 61% YTD
(Reporting by Khushi Mandowara)
((Khushi.Mandowara@thomsonreuters.com;))