Jazz Pharmaceuticals Acquires Chimerix for $935M, Expanding Oncology Portfolio

Jazz Pharmaceuticals has announced its acquisition of Chimerix, a North Carolina-based biotech company, for $935 million in an all-cash deal. The acquisition, expected to close in the second quarter of 2025, significantly expands Jazz's oncology expertise and pipeline, particularly in the area of rare brain tumors.

Dordaviprone: A Potential Breakthrough in Glioma Treatment

At the heart of this acquisition is Chimerix's lead drug candidate, dordaviprone (also known as ONC201). This investigational small molecule is designed to selectively target CIpP, a mitochondrial protease, while also targeting the dopamine receptor D2. Dordaviprone is currently under FDA review for the treatment of H3 K27M-mutated diffuse glioma, a rare and aggressive type of brain tumor primarily affecting children.

The FDA has granted dordaviprone priority review status, with a decision expected by August 18, 2025. If approved, it could become the first FDA-approved therapy for this specific indication, addressing a significant unmet medical need.

Bruce Cozadd, Jazz's CEO, stated, "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."

Strategic Expansion and Financial Details

The acquisition aligns with Jazz's strategy to diversify its pipeline and expand its presence in the oncology market. Jazz will pay $8.55 per share for Chimerix's outstanding shares, representing a 72% premium over Chimerix's closing price on Monday.

Jazz plans to finance the deal using its existing cash reserves and investments, which totaled $3 billion at the end of 2024. The company expects the acquisition to contribute to its revenue stream in the near future, with analysts estimating peak sales of around $550 million for dordaviprone in its current indication.

Future Development and Commercial Plans

Following the acquisition, Jazz and Chimerix will combine their commercial capabilities to prepare for a strong launch of dordaviprone, pending FDA approval. The companies will also continue developing the drug for other oncology indications.

Dordaviprone is currently being studied in the Phase III ACTION trial for diffuse glioma, with interim results expected in the third quarter of 2025. This study aims to establish both clinical benefit and potential use as a first-line treatment.

Additionally, Chimerix's pipeline includes ONC206, another potential solid tumor treatment that is reportedly ten times more potent than dordaviprone in vitro. A phase 1 trial for ONC206 is ongoing in patients with central nervous system cancers.