Jazz Pharmaceuticals acquires Chimerix for $935 million

DUBLIN - Jazz Pharmaceuticals plc (NASDAQ: JAZZ), a healthcare company with a market capitalization of $6.09 billion and impressive gross margins of 92.36%, has completed its acquisition of biotechnology company Chimerix, Inc., making it a wholly owned subsidiary, in a deal valued at approximately $935 million in cash. The transaction, which concluded with a tender offer of $8.55 per share, was finalized on Sunday. According to InvestingPro analysis, Jazz currently trades near its 52-week low, suggesting potential value opportunity for investors.

This strategic move adds dordaviprone, a potential treatment for H3 K27M-mutant diffuse glioma, to Jazz’s oncology pipeline. Dordaviprone is notable for being under Priority Review by the U.S. Food and Drug Administration (FDA), with a decision expected by August 18, 2025. Approval could make it the first and only FDA-sanctioned therapy for this rare pediatric disease, possibly qualifying for a Priority Review Voucher. With a strong financial health score rated as "GREAT" by InvestingPro, Jazz appears well-positioned to support this expansion.

Bruce Cozadd, chairman and CEO of Jazz, expressed optimism about the acquisition’s ability to meet unmet patient needs and the potential for a commercial launch in the latter half of the year, subject to FDA approval.

Dordaviprone, also known as ONC201, is a first-in-class small molecule imipridone targeting mitochondrial protease ClpP and dopamine receptor D2. Its mechanism of action involves reversing key epigenetic modifications associated with H3 K27M-mutant gliomas. The ongoing Phase 3 ACTION trial is assessing the drug’s efficacy in newly diagnosed patients following radiation treatment.

The acquisition aligns with Jazz’s mission to develop medicines for serious diseases with limited treatment options. Jazz, with its global presence, is known for its portfolio of marketed medicines for sleep disorders, epilepsy, and a growing number of cancer treatments.

The press release includes forward-looking statements that involve risks and uncertainties, cautioning that actual results may differ from those anticipated. It also outlines potential risks such as regulatory approval uncertainties, integration challenges, and the inherent risks of pharmaceutical development and commercialization. Despite these risks, InvestingPro data shows Jazz’s net income is expected to grow this year, with the company currently trading below its Fair Value. Investors seeking detailed analysis can access Jazz’s comprehensive Pro Research Report, part of InvestingPro’s coverage of over 1,400 US stocks.

This report is based on a press release statement and presents the facts surrounding Jazz Pharmaceuticals’ acquisition of Chimerix and the potential implications for its oncology pipeline.

In other recent news, Jazz Pharmaceuticals has been at the center of several noteworthy developments. H.C. Wainwright raised its price target for Jazz Pharmaceuticals to $217, highlighting the company’s recent acquisition of Chimerix and the potential for significant R&D savings and operating margin improvements. This acquisition is expected to add dordaviprone, a promising treatment for a rare brain tumor, to Jazz’s portfolio. Truist Securities also increased its price target to $230, factoring in the potential of dordaviprone, with peak sales projected to reach $800 million by 2037. Meanwhile, UBS upgraded Jazz Pharmaceuticals to a Buy rating, setting a price target of $179, citing confidence in the company’s base business and its Ziihera pipeline. BofA Securities maintained its Buy rating with a target of $213, addressing concerns about potential pharmaceutical tariffs and emphasizing Jazz’s U.S. production capabilities. UBS analysts also adjusted their price target to $166, noting the recent stock performance and the company’s diverse manufacturing presence. These developments reflect a period of strategic activity and analyst interest in Jazz Pharmaceuticals, with several firms recognizing potential upside in the company’s future performance.

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