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Analyst: Chimerix Govt. Smallpox Pact Worth Up To $435 Million

John Seward

Chimerix Inc (NASDAQ: CMRX)'s proposed government contract to produce up to 1.7 million doses of a treatment for smallpox could be worth up to $435 million, an analyst said Wednesday.

The company was awarded the sole-source, five-year contract Monday, although it would formally receive it until April 28 to verify that no other sources can supply the drug.

"It's Chimerix's contract for the taking," according to Brean's Jonathan Aschoff who maintained a Buy rating and $45 target.

Chimerix has 2014 revenue of $4 million.

Chimerix has been working with the agency, the Biomedical Advanced Research and Development Authority, or Barda, since 2011 on developing its brincidofovir drug as a treatment for both smallpox as well as for cytomegalovirus, which is dangerous to newborn children.

Barda, an arm of the U.S. Department of Health and Human Services, said a data package to support a new drug application for brincidofovir for the prevention of CMV is nearing completion.

Chimerix gained more than 3 percent since obtaining the contract and closed Wednesday at $38.26, down $0.39.

Latest Ratings for CMRX

Date Firm Action From To
Mar 2015 Cantor Fitzgerald Maintains Buy
Mar 2015 Barclays Initiates Coverage on Overweight
Feb 2015 Stifel Nicolaus Maintains Buy

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