Jazz Pharmaceuticals Acquires Chimerix for $935 million
The acquisition is expected to enhance Jazz's oncology portfolio by adding dordaviprone, a novel small molecule therapy in development for H3 K27M-mutant diffuse glioma.
Image Credit: Adobe Stock Images/Bartek
Jazz Pharmaceuticals has announced that it has acquired Chimerix for approximately $935 million in cash. The acquisition includes dordaviprone, a novel small molecule therapy in development for H3 K27M-mutant diffuse glioma in children and young adults. The transaction has been approved by both companies and is expected to close in Q2 of this year.1
"Adding dordaviprone to our oncology R&D pipeline will further diversify our portfolio with a medicine that addresses a significant unmet need with no other FDA-approved therapies and limited treatment options for this patient population. If approved, dordaviprone has the potential to rapidly become a standard of care for a rare oncology disease and also contribute durable revenue beginning in the near term," said Bruce Cozadd, chairman and CEO of Jazz Pharmaceuticals, in a press release. "We are encouraged by the dordaviprone clinical trial results to date and look forward to closing the proposed acquisition and working with our new colleagues from Chimerix to fully leverage our combined R&D and commercial expertise to deliver this novel therapy to patients, beginning as early as the second half of this year."
Under the terms of the deal, Jazz will offer all shareholders of Chimerix $8.55 per share in cash, representing a 72% premium. The company is expected to acquire additional shares through a second-step merger at the same amount.
The regulatory outlook for dordaviprone aligns with Jazz’s strategic acquisition, as the FDA has accepted a New Drug Application for the therapy under Priority Review. The agency has set a targeted Prescription Drug User Fee Act date of August 18, 2025. If approved, dordaviprone could potentially qualify for a Rare Pediatric Disease Priority Review Voucher.
Additionally, dordaviprone is currently being evaluated in the Phase III ACTION trial in patients newly diagnosed with H3 K27M-mutant diffuse glioma who were treated with radiation therapy. Currently, there are no FDA-approved therapies for H3 K27M-mutant diffuse glioma.1
Chimerix describes dordaviprone as a first-in-class small molecule imipridone that targets both the G-protein-coupled dopamine receptor D2 and the mitochondrial protease ClpP with selective binding.
A November 2021 integrated safety and efficacy analysis found that as a monotherapy, dordaviprone demonstrated an overall response rate of 20%, based on dual-reader, blinded independent central review by Response Assessment in Neuro-Oncology – High Grade Glioma criteria. Additionally, the disease control rate was 40%, the median time to response was 8.3 months, the six-month progression-free survival (PFS) rate was 35%, and the one-year PFS rate was 30%.2
Last week, Jazz announced its full financial results for 2024, as well as financial guidance for 2025. According to the company, it generated approximately $1.4 billion in cash from business performance. This year, the company expects to accrue between $720 million and $770 million in non-GAAP R&D expenses and between $792 million and $851 million in GAAP R&D expenses. Additionally, the financial guidance indicated a GAAP gross margin of 88% and a non-GAAP gross margin of 92%.3
"We are excited to reach this agreement with Jazz Pharmaceuticals as they bring global scale to broaden our dordaviprone commercial strategy," said Mike Andriole, president and CEO of Chimerix, in the press release. "The transaction, if approved, provides the opportunity to advance access to dordaviprone to reach more patients globally. This announcement is the culmination of years of scientific work by our incredibly talented team and will deliver significant and certain value to our shareholders."
References
1. Jazz Pharmaceuticals to Acquire Chimerix, Further Diversifying Oncology Portfolio. PR Newswire. March 5, 2025. Accessed March 5, 2025. https://prnmedia.prnewswire.com/news-releases/jazz-pharmaceuticals-to-acquire-chimerix-further-diversifying-oncology-portfolio-302393056.html
2. Overview of ONC201 in H3 K27M Glioma. Chimerix. Accessed March 5, 2025. https://www.chimerix.com/our-pipeline/imipridones/onc201/
3. Jazz Pharmaceuticals Announces Full Year and Fourth Quarter 2024 Financial Results and Provides 2025 Financial Guidance. PR Newswire. February 25, 2025. Accessed March 5, 2025. https://prnmedia.prnewswire.com/news-releases/jazz-pharmaceuticals-announces-full-year-and-fourth-quarter-2024-financial-results-and-provides-2025-financial-guidance-302385001.html
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