Chimerix acquires cancer-drug company Oncoceutics for $78M

Chimerix Inc. acquired Oncoceutics Inc., a privately held company developing targeted cancer therapies, for $78 million.

Durham, N.C.-based Chimerix will pay $39 million of the consideration in stock and the other half in cash, subject to certain adjustments. Of the $39 million cash payment, $25 million will be paid at closing and the remaining $14 million a year after closing.

Oncoceutics shareholders could earn development, regulatory and sales milestones of up to $360 million across three development programs. Shareholders are also eligible to obtain royalties on combined sales of ONC201 and ONC206.

ONC201 is Philadelphia-based Oncoceutics' lead product candidate being developed to treat recurrent H3 K27M-mutant glioma, a type of tumor that starts in the brain and spine. The therapy is under a registrational clinical trial and confirmatory response rate assessment is anticipated in 2021.

The U.S. Food and Drug Administration has granted ONC201 fast track designation for treating recurrent H3 K27M-mutant high-grade glioma; rare pediatric disease designation for H3 K27M-mutant glioma; and orphan drug designations for glioblastoma and malignant glioma.

The boards of both companies approved the transaction, which closed Jan. 7.

Cooley LLP was the legal adviser to Chimerix. Evercore and Morgan Lewis served as exclusive financial adviser and legal adviser, respectively, to Oncoceutics. Spring Mountain Capital was the lead Oncoceutics investor.