Biopharmaceutical firm Chimerix (NASDAQ: CMRX) shares are trading higher on Friday after the company announced the acquisition of Oncoceutics, a privately held clinical-stage biotechnology company.
The deal will see Chimerix pay Oncoceutics shareholders $78 million, of which $39 million is payable in Chimerix stock, and $39 million is payable in cash. The cash payment is split with $25 million at closing and $14 million on the first anniversary of closing.
Oncoceutics shareholders can also potentially earn development, regulatory and sales milestones totalling up to $360 million across three development programs on combined sales of ONC201 and ONC206 of 15% up to $750 million in annual revenue and 20% above $750 million.
Chimerix will benefit from an expanded pipeline with Oncoceutics lead product candidate, ONC201, shown to selectively induce cancer cell death in various cancer types. The drug is currently in a registrational clinical trial for recurrent H3 K27M-mutant glioma.
“Glioma remains one of the highest areas of unmet need in oncology where even first-line radiation therapy, as well as temozolomide in eligible patients, is not meaningfully effective and subsequent therapies are considered palliative,” said Mike Sherman, CEO of Chimerix.
“Our team is uniquely positioned to advance ONC201 given our considerable experience bringing targeted oncology products through the regulatory process,” added Sherman.
Chimerix shares have shot higher on the news, currently trading 70.67% higher at $8.50 following Thursday’s close at $4.98.