Jazz Pharmaceuticals Bets on Oncology Growth with Chimerix Acquisition

Jazz Pharmaceuticals (NASDAQ: JAZZ) has agreed to acquire Chimerix (NASDAQ: CMRX) in a deal set to close in the second quarter of 2025, strengthening its position in the oncology market. The acquisition will give Jazz access to Chimerix’s lead candidate, dordaviprone (ONC201), a first-in-class treatment for H3 K27M-mutant diffuse glioma — a rare and aggressive brain tumor that primarily affects children and young adults. Currently, no FDA-approved therapies exist for this condition beyond radiation.

The U.S. Food and Drug Administration (FDA) is reviewing dordaviprone for accelerated approval, with a decision expected by August 18. If approved, the drug could qualify for a Rare Pediatric Disease Priority Review Voucher (PRV), which can be sold or used to expedite the review of another drug. Dordaviprone is also being evaluated in the Phase 3 ACTION trial for use in newly diagnosed, non-recurrent patients after radiation, potentially expanding its use to the front-line setting.

The acquisition comes as Jazz looks to offset falling revenues in its Neuroscience segment, which has been hit by declining sales of Xyrem — its legacy sodium oxybate product — following the entry of generic and branded competitors. Xyrem accounted for 28% of Jazz’s revenue in 2022 but now contributes just 3%. The Chimerix acquisition is expected to accelerate growth in Jazz’s Oncology segment, with analysts forecasting a 15% year-on-year rise in oncology sales to $1.4 billion by 2026. Oncology, which represented 24% of Jazz’s revenue in 2022, is projected to contribute 31% by 2026 and 57% by 2035. Dordaviprone alone is expected to generate $37.8 million in revenue in 2026 and $91.4 million in 2027, with peak sales reaching $509 million by 2035.