TRIMERIS INC : Le point sur TRMS (article du 18/08/07)

grangers

21 août 2007 •15:38

Trimeris executives started talks with a large shareholder that is pushing the Durham company to halt development of an HIV/AIDS drug and consider putting itself up for sale.
Andrew Graham, Trimeris' director of finance, said he has had one phone conversation with HealthCor Management. The New York investment firm has been buying Trimeris shares and owns at least 15 percent of the struggling company.

Graham declined to say whether Trimeris is for sale.

But the company isn't changing its research and development activities, he said. "At this point of time, we're sticking to our position," he added.

HealthCor representatives did not return a call Friday.

In a letter to Trimeris' board filed Aug. 14 with the Securities and Exchange Commission, HealthCor said that Trimeris' plan to develop a next-generation Fuzeon AIDS drug is depressing the company's stock. It labels the research effort as "too expensive, lengthy and risky."

New HIV/AIDS drugs coming to market have begun to slow Fuzeon sales, and analysts don't expect a new version of the drug to change that. But on the auction block, analysts projected, Trimeris could fetch $9 to $12 per share, a premium over the current price.

Healthcor also said it resorted to writing the board after Larry Hill, Trimeris' president, failed to respond to its phone calls and a letter.

But Graham said there's no hostility between Trimeris and Healthcor. More talks may follow, maybe even a face-to-face meeting, though nothing is scheduled yet, he said.

Fuzeon was approved for patients four years ago, but sales have never lived up to early expectation, partly because the drug must be injected and partly because of its high price -- about $22,000 per year.

After years of disappointment, Trimeris started a restructuring late last year that led to layoffs and an overhaul of its executive team and board.

Shares of Trimeris have lost nearly half their value this year. But the stock has climbed 22 percent since HealthCor, which has about $1.8 billion under management, filed documents with the SEC Aug. 7 revealing that it has been buying Trimeris shares and is seeking a meeting with the company's management.

Trimeris shares closed Friday at $7.07, down 6 cents.


Staff writer Sabine Vollmer can be reached at 829-8992 or sabine.vollmer@newsobserver.com.