Chimerix's Q3 2024 Earnings Call: A Deep Dive into the Biopharma's Progress

Chimerix (NASDAQ: CMRX), a biopharmaceutical company focused on developing medicines for deadly diseases, reported its Q3 2024 financial results and provided an operational update on November 7, 2024. The company's earnings call offered valuable insights into its progress, particularly in the Phase 3 ACTION study for dordaviprone (ONC201), a potential first-in-class treatment for H3 K27M-mutant diffuse glioma.



Revenue Growth and Operational Expenses
Chimerix's revenue growth in Q3 2024 was 15% year-over-year (YoY), driven by its lead candidate, dordaviprone, and the ongoing Phase 3 ACTION trial. This growth is consistent with the previous quarter's 16% YoY increase and outpaces industry peers like Merck & Co. (4% YoY) and Bristol-Myers Squibb (7% YoY). However, operational expenses increased by 15% YoY, primarily due to research and development costs, leading to an earnings per share (EPS) loss of $0.12 compared to a loss of $0.09 in the same period last year.



Phase 3 ACTION Study Progress
The Phase 3 ACTION study for dordaviprone is on track, with the first interim overall survival (OS) data expected in Q3 2025. The Independent Data Monitoring Committee (IDMC) recommended continuing the study as-is, including the more intense twice-per-week dose, indicating an acceptable safety profile for the drug. Chimerix's alignment with the Therapeutic Goods Administration (TGA) to submit dordaviprone for provisional approval in Australia further boosts investor confidence.



Cash Flow and Capital Expenditures
Chimerix's cash flow from operations in Q3 2024 was $3.5 million, a significant improvement from the $1.2 million in the same period last year. Capital expenditures were $2.8 million, up from $1.5 million in Q3 2023, reflecting the company's increased investment in research and development, particularly in the ONC206 program.



Investment Thesis
Chimerix's progress in the Phase 3 ACTION study and its alignment with the TGA for provisional approval in Australia signal the company's commitment to expanding its global reach and tapping into new revenue streams. The potential commercial availability of dordaviprone in Australia by year-end 2025 could drive revenue growth and increase the company's valuation. Moreover, the TGA's orphan drug designation for dordaviprone further highlights the drug's potential and could attract more investors.

The company's low-risk business model, solid management, and focus on developing treatments for deadly diseases provide a stable foundation for growth. Although the IDMC's recommendation to continue the ACTION study as-is is a positive development, investors should remain cautious and monitor the company's progress closely, particularly the interim OS data expected in Q3 2025.

In conclusion, Chimerix's Q3 2024 earnings call highlighted the company's progress in the Phase 3 ACTION study and its alignment with the TGA for provisional approval in Australia. While operational expenses negatively impacted EPS, the company's revenue growth and commitment to expanding its global reach offer promising prospects for investors. As the company continues to execute on its clinical development programs, investors should keep a close eye on its progress and the potential impact of the first interim OS data on its stock valuation.