Chimerix says exposure to any SVB liquidity risk is “immaterial”
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- Amid funding woes at SVB Financial (SIVB), the parent company of Silicon Valley Bank, Durham, North Carolina-based biotech Chimerix (NASDAQ:CMRX), announced Friday that its exposure to liquidity concerns at the regional bank is "immaterial."
- The shares of the monkeypox vaccine developer dropped ~7% in the previous session, a day after SVB Financial (SIVB) announced plans to sell $1.75B worth of common and preferred stock in an attempt to reposition its balance sheet and shore up liquidity.
- “Chimerix considers its exposure to any liquidity concern at SVB as immaterial, given that cash held at SVB is at or near the FDIC-insured limit of $250,000,” Chimerix (CMRX) said in a regulatory filing a short while ago, as SIVB plunged ~42%.
- The biotech added that multiple firms which serve as custodians for third-party investments under its name “are not directly exposed to any consequences of a liquidity concern at SVB.”
- This week, Seeking Alpha contributor Out of Ignorance upgraded Chimerix (CMRX) to Strong Buy from Hold, citing cash runway into 2027.