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Jazz Pharmaceuticals JAZZ announced that it has entered into a definitive agreement to acquire all the outstanding shares of clinical-stage biotech Chimerix CMRX for $8.55 per share in cash, aggregating to nearly $935 million.
The transaction, expected to be completed in the second quarter, is subject to customary closing conditions and clearance from regulatory authorities. Jazz expects to fund this deal using its existing cash balance and investments.
JAZZ Sets Eyes on CMRX’s Rare Oncology Drug
After this acquisition is completed, Jazz will add CMRX’s lead pipeline drug, dordaviprone. The FDA is currently reviewing this drug under the accelerated approval pathway as a potential treatment for adult and pediatric patients with recurrent H3 K27M-mutant diffuse glioma. A final decision is expected by Aug. 18, 2025.
If the Chimerix drug receives approval, it will be the first FDA-approved therapy for this deadly disease and among the first molecularly targeted therapies for high-grade gliomas. Currently, radiation is the most common treatment approach for the given indication. A potential approval for dordaviprone also makes CMRX eligible for a rare pediatric disease priority review voucher (PRV).
Dordaviprone is also being evaluated in the ongoing phase III ACTION study to confirm its clinical benefit in newly diagnosed patients with non-recurrent H3 K27M-mutant diffuse glioma. If data from this study is positive, it could expand the drug’s use as a front-line treatment and also convert the potential accelerated approval into a full one. Interim results from this study are expected later this year.
Chimerix also has another clinical candidate, ONC206, which is being evaluated in early-stage, dose-escalating studies for adult and pediatric patients with advanced central nervous system tumors.
JAZZ will also likely acquire a financial interest in the smallpox drug Tembexa, which was sold by Chimerix to Emergent BioSolutions EBS in September 2022.
JAZZ & CRMX Stock Performance
Following this news on Wednesday, shares of Chimerix surged nearly 71% while Jazz gained about 1%.
Year to date, shares of Jazz have risen 14%, while those of Chimerix have skyrocketed 143%. Both stocks have outperformed the industry’s 6% growth during the same timeframe.
Image Source: Zacks Investment Research
How Does the CMRX Buyout Benefit JAZZ?
In our opinion, the deal is a strategic fit for Jazz Pharmaceuticals, which currently markets five oncology drugs, namely Defitelio, Vyxeos, Rylaze, Zepzelca and Ziihera. The addition of Chimerix’s drug help Jazz expand its oncology portfolio and further diversify its revenue stream. The deal also benefits CMRX as it lacks a commercial supply chain and experience to market a drug — something that JAZZ already has in place.