DURHAM – Biopharma Chimerix has landed a contract worth as much as $680 million with the federal government for its smallpox treatment TEMBEXA, which was approved by the FDA.
Securing of the deal with the Biomedical Advanced Research and Development Authority (BARDA) in the U.S. Department of Health and Human Services’ Administration for Strategic Preparedness and Response was a key part in a Chimerix (Nasdaq: CMRX) deal earlier this year to sell rights to the treatment to Emergent BioSolutions Inc. for more than $300 million.
The BARDA contract is for 10 years and includes $115 million for an initial procurement.
“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. TEMBEXA’s simple two dose oral regimen is the first approved smallpox treatment for all ages, including infants,” said Mike Sherman, CEO of Chimerix, in a statement. “TEMBEXA also may provide protection for patients should a strain of variola virus emerge that is resistant to other antivirals.”
Chimerix noted that EBS is “expected to pay” the company:
- Upfront payment of $238 million upon the signing of the pre-novation agreement;
- Potential milestone payments of up to $124 million (up to $31 million for each of the remaining BARDA procurement options due within 30 days of exercise);
- 15% royalty on gross profit from sales of TEMBEXA outside the U.S.;
- 20% royalty on gross profit from sales of TEMBEXA in the U.S. that are in excess of 1.7 million treatment courses; and
- Up to an additional $12.5 million upon achievement of certain developmental milestones.