Here's Why Chimerix Stock Is Imploding Today
A poorly received decision from the management team at Chimerix (NASDAQ: CMRX), a biopharmaceutical company, sent its stock price into a nosedive on Monday morning. Investors furious about the sale of Tembexa for an uncertain sum and the company's plans for that cash infusion have hammered the stock 59.7% lower as of 10:36 a.m. ET.
Chimerix reported first-quarter earnings this morning, but with just $15,000 in top-line revenue, investors were more interested in an accompanying announcement regarding the company's most valuable asset. Investors are not happy about the company's planned sale of Tembexa, an antiviral the U.S. Food and Drug Administration (FDA) approved to treat smallpox last June, to Emergent Biosolutions (NYSE: EBS), a company with a history of manufacturing medical countermeasures against eradicated diseases for the U.S. government.
Under the terms of the agreement, Chimerix will receive $225 million when the transaction closes plus up to $100 million worth of milestone payments. The stock's market cap has fallen to about $150 million because the company also noted these payments could be adjusted based on actual procurement value.
Source Fool.com
