In a significant expansion of its oncology portfolio, Jazz
Pharmaceuticals has entered into an agreement to purchase Chimerix for $935 million, positioning itself to acquire an experimental brain cancer treatment currently under FDA review. The all-cash transaction, announced on Wednesday, will see Chimerix shareholders receive $8.55 per share, representing a 72% premium over the company’s Tuesday closing price.
The Dublin-based pharmaceutical company plans to finance the acquisition using its substantial cash reserves and investments, which stood at $3 billion at the close of 2024. The deal is expected to reach completion during the second quarter of 2025.
Central to the acquisition is Chimerix’s drug candidate dordaviprone, also known as ONC201, which is being evaluated for the treatment of gliomas featuring an H3 27M mutation. This genetic variation is particularly prevalent in glioma patients under 50 years old, according to research from 2014. If approved, dordaviprone would join Jazz’s existing lineup of five cancer medications.
The drug’s FDA submission relies on clinical trial data demonstrating that 28% of participants experienced either tumor shrinkage or stabilization. While this initial study did not include comparison groups, Chimerix is currently conducting a Phase 3 trial measuring dordaviprone’s effectiveness against a placebo in post-radiation therapy glioma patients, with interim results anticipated in the third quarter of 2025.
Bruce Cozadd, Jazz’s chairman and CEO, expressed optimism about the drug’s potential, stating that if approved, dordaviprone could quickly become essential in treating this rare form of cancer while generating sustainable revenue. The FDA is expected to make its decision on accelerated approval in the third quarter, with the application having received priority review status.
According to Jefferies analyst Maury Raycroft, the FDA’s willingness to consider the accelerated approval application may have been influenced by Chimerix’s success in enrolling patients for the ongoing Phase 3 trial. Raycroft projects potential peak sales of approximately $550 million for the initial indication under FDA review.
The merger brings together two veteran companies in the biotechnology sector. Jazz, established in 2003, began with a focus on neurology and psychology medications, while Chimerix, founded in 2002, initially concentrated on developing antiviral treatments for smallpox and HIV.
This strategic acquisition comes at a time of transition for Jazz, as Cozadd, who helped establish the company, recently announced his retirement plans. The transaction would help Jazz diversify its revenue streams beyond its primary income source, the sleep medication Xywav.
The acquisition aligns with broader industry trends, where
pharmaceutical companies are actively seeking to strengthen their positions in specialized therapeutic areas through strategic acquisitions. For Jazz, this deal represents a significant step in building its oncology presence, particularly in addressing rare and difficult-to-treat cancers.
By leveraging its substantial financial resources for this
acquisition, Jazz demonstrates its commitment to expanding its therapeutic reach and reinforcing its position in the oncology market. The potential addition of dordaviprone to Jazz’s portfolio could provide new treatment options for patients with limited alternatives while contributing to the company’s growth objectives.