Jazz Offers to Buy Chimerix for $935M to Boost Oncology Portfolio

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 DrugAfter 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 PerformanceFollowing 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 ResearchHow 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.Over the few years, Jazz has been successful in reducing its revenue burden on just its neuroscience portfolio, which is mainly being driven by two products—sleep disorder drug Xywav and epilepsy drug Epidiolex. The company’s share of product revenues from its oncology segment is increasing consistently — what started as an additional revenue generator accounted for 29% of its product revenues in 2024. This contribution is only expected to go up as sales of the company’s oncology drugs are expected to rise consistently.The addition of a new drug like dordaviprone, which is nearing a potential approval from the FDA, also provides JAZZ with a potentially new revenue stream. Per the company, the CMRX drug has patent production through at least 2037, which meets Jazz’s durable revenue requirement.For 2025, Jazz expects total revenues to be in the range of $4.15-$4.40 billion, indicating 5% year-over-year growth at the midpoint. It expects sales from its oncology products to be a key contributor to its top line.Jazz Pharmaceuticals PLC Price Jazz Pharmaceuticals PLC price | Jazz Pharmaceuticals PLC QuoteJAZZ’s Zacks RankJazz Pharmaceuticals currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Jazz Pharmaceuticals PLC (JAZZ): Free Stock Analysis Report Emergent Biosolutions Inc. (EBS): Free Stock Analysis Report Chimerix, Inc. (CMRX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks