The smallpox medicine had been the only product from Chimerix (NASDAQ:CMRX) that had managed to get approval from the United States Food and Drug Administration. However, the company announced yesterday that it had decided to sell the product in a deal that is going to be worth as much as $337.5 million.
Trading Data
On Monday, CMRX stock plunged 61% to $1.66 with more than 38.01 million shares, compared to its average volume of 1.80 million shares. The stock moved within a range of $1.6000 – 1.9900 after opening trading at $1.94.
Key Details
Chimerix noted that it had decided to make such a move in order to get the necessary funding for its other initiatives. The sale of the only approved product came as a major shock to many investors, who headed for the exits in a big way and sent the Chimerix stock cratering by as much as 61%.
The company announced yesterday that it had reached an agreement with regards to the sale with the company Emergent BioSolutions, which is based out of Maryland. The product in question is Tembexa, for which Chimerix had got the much needed approval back in 2021. The company is going to get a cash payment of as much as $225 million straightaway and on top of that, it could also get as much a $112.5 million more if the product could manage to hit certain milestones.
Technical Data
CMRX stock is trading below the 20-Day and 50-Day Moving averages of $4.25 and $4.81 respectively. Moreover, the stock is trading below the 200-Day moving average of $5.78.
