Rubric Capital Management Sends Letter to Chimerix
November 10, 2022 at 03:05 pm EST
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On November 10, 2022, Rubric Capital Management LP issued a press release announcing that it sent a letter to the board of directors of Chimerix, Inc. setting forth certain of its views on the Company. Rubric Capital Management stated that it has had and anticipate having further discussions with officers and directors of the Company in connection with its investment in the Company. In the letter, Rubric Capital Management stated that the Company is on the wrong path and is being frivolous with shareholder value.
Rubric Capital Management added that continuing to invest in ONC201 despite the likely need for an expensive phase 3 trial is not an appropriate course of action for a Company of this size and with such an onerous cost of capital. Rubric Capital Management expressed its view that the Board must simultaneously begin a winddown process to maximize liquidation value available to shareholders and commence a strategic alternatives process for ONC201.
Chimerix, Inc. is a biotechnology company. The Company is focused on developing medicines that address unmet medical needs. The Company's product Imipridones is a cancer therapy that provides ONC201, which is in clinical-stage development for H3 K27M-mutant glioma as its lead indication. In addition, imipridone ONC206 is in dose-escalating clinical trials. Imipridones target specific G protein-coupled receptors (GPCRs) and mitochondrial caseinolytic protease P (ClpP), resulting in cancer cell death. The Company's product Imipridone chemical scaffold provides an opportunity to target GPCRs and ClpP with tunable specificity and modality, which enables therapeutic use for cancer and other diseases. Its ONC206 is an imipridone, Dopamine Receptor D2 (DRD2) antagonist and ClpP agonist. Its ONC212 is an imipridone, an investigational agonist of the orphan GPCR tumor suppressor GPR132, as well as ClpP. Its CMX521 is a nucleoside analog antiviral drug candidate for the treatment of SARS-CoV-2.
CHIMERIX, INC. 
