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AIDS drug maker falters
Short on cash, Trimeris cuts jobs
http://tinyurl.com/2vwfw
Tuesday, January 6, 2004 12:00AM EST
By SABINE VOLLMER, Staff Writer
Prompted by lackluster sales of its AIDS drug Fuzeon, Trimeris is halting development of a second-generation version of the drug and cutting 30 jobs, about one-quarter of the Durham company's work force.
To reduce expenses, Trimeris is retooling its research and development programs. All of the employees who were let go Monday worked on the experimental AIDS treatment known as T-1249, said spokeswoman Robin Fastenau.
<HR ALIGN=CENTER SIZE="3" WIDTH="95%">Trimeris halts trials of AIDS Drug, Stocks Fall
http://tinyurl.com/37o59
Tue January 06, 2004 01:35 AM ET
(Adds comments from Trimeris conference call throughout)
By Ransdell Pierson and Bill Berkrot
NEW YORK, Jan 5 (Reuters) - Swiss drugmaker Roche Holding AG (ROG.VX: Quote, Profile, Research) and Trimeris Inc. (TRMS.O: Quote, Profile, Research) on Monday said they had halted clinical trials of their experimental HIV drug, called T-1249, sending Trimeris shares down more than 10 percent in after-hours trade.
Trimeris, which developed a similar HIV drug called Fuzeon with Roche that was approved by U.S. regulators in March, has no other medicine currently in clinical trials.
Trimeris said there would be job cuts related to the curtailing of development of T-1249. A company spokeswoman said about 30 jobs would be lost, leaving the tiny biotechnology company with about 100 employees.
"With the loss of T-1249, Trimeris' drug pipeline is essentially gone," said David Bouchey, a drug analyst for C.E. Unterberg, Towbin.
He said the setback will likely delay launch of any new Trimeris drug by between two and five years.
Roche and Durham, North Carolina-based Trimeris said they had stopped trials of T-1249 because of shortcomings found in its formulation, which the partners did not describe.
Trimeris Chief Executive Dani Bolognesi said in a conference call that T-1249 was not dead, but that the company was "putting the current clinical program on hold until we arrive at a formulation that meets our objectives."
He said Trimeris expected to name its next candidate for clinical testing sometime this year.
U.S. regulators had agreed to review the injectable medicine, which has been in Phase I/II trials, on a "fast-track" basis once later trials were completed.
Like Fuzeon, T-1249 is a so-called fusion inhibitor designed to prevent the virus that causes AIDS from entering human cells.
The companies said they remain committed to fusion inhibitor development and signed an agreement to continue their partnership in research on drugs in this class.
The annual cost of Fuzeon is about $20,000 per patient, but Roche and Trimeris have said the cost is justified because dozens of steps are required to produce the injectable drug.
U.S. sales of Fuzeon reached only $10.7 million in the third quarter of 2003 because of failure by Roche to aggressively market the medicine and unwillingness of insurers to pay for it, Bouchey said.
The share price of Trimeris, which had reached almost $56 in the past year, has fallen dramatically as a result of the disappointing Fuzeon demand.
But Bouchey predicted sales of Fuzeon will soon pick up, reaching annual sales of $500 million by 2005.
The companies on Monday said they would undertake a number of initiatives designed to boost Fuzeon sales and were working on ways to reduce the number of injections necessary for patients.
Bolognesi said Trimeris planned to spend between $22 million and $27 million on research and development in 2004. He added that the company had sufficient cash to fund operations for at least the next two years.
"If sales of Fuzeon improve, the two years cash situation obviously resolves itself," he added.
Shares of Trimeris fell to $18.10 on the Instinet electronic brokerage system after closing off 3.6 percent at $20.24 in regular Nasdaq trade on Monday
Short on cash, Trimeris cuts jobs
http://tinyurl.com/2vwfw
Tuesday, January 6, 2004 12:00AM EST
By SABINE VOLLMER, Staff Writer
Prompted by lackluster sales of its AIDS drug Fuzeon, Trimeris is halting development of a second-generation version of the drug and cutting 30 jobs, about one-quarter of the Durham company's work force.
To reduce expenses, Trimeris is retooling its research and development programs. All of the employees who were let go Monday worked on the experimental AIDS treatment known as T-1249, said spokeswoman Robin Fastenau.
<HR ALIGN=CENTER SIZE="3" WIDTH="95%">Trimeris halts trials of AIDS Drug, Stocks Fall
http://tinyurl.com/37o59
Tue January 06, 2004 01:35 AM ET
(Adds comments from Trimeris conference call throughout)
By Ransdell Pierson and Bill Berkrot
NEW YORK, Jan 5 (Reuters) - Swiss drugmaker Roche Holding AG (ROG.VX: Quote, Profile, Research) and Trimeris Inc. (TRMS.O: Quote, Profile, Research) on Monday said they had halted clinical trials of their experimental HIV drug, called T-1249, sending Trimeris shares down more than 10 percent in after-hours trade.
Trimeris, which developed a similar HIV drug called Fuzeon with Roche that was approved by U.S. regulators in March, has no other medicine currently in clinical trials.
Trimeris said there would be job cuts related to the curtailing of development of T-1249. A company spokeswoman said about 30 jobs would be lost, leaving the tiny biotechnology company with about 100 employees.
"With the loss of T-1249, Trimeris' drug pipeline is essentially gone," said David Bouchey, a drug analyst for C.E. Unterberg, Towbin.
He said the setback will likely delay launch of any new Trimeris drug by between two and five years.
Roche and Durham, North Carolina-based Trimeris said they had stopped trials of T-1249 because of shortcomings found in its formulation, which the partners did not describe.
Trimeris Chief Executive Dani Bolognesi said in a conference call that T-1249 was not dead, but that the company was "putting the current clinical program on hold until we arrive at a formulation that meets our objectives."
He said Trimeris expected to name its next candidate for clinical testing sometime this year.
U.S. regulators had agreed to review the injectable medicine, which has been in Phase I/II trials, on a "fast-track" basis once later trials were completed.
Like Fuzeon, T-1249 is a so-called fusion inhibitor designed to prevent the virus that causes AIDS from entering human cells.
The companies said they remain committed to fusion inhibitor development and signed an agreement to continue their partnership in research on drugs in this class.
The annual cost of Fuzeon is about $20,000 per patient, but Roche and Trimeris have said the cost is justified because dozens of steps are required to produce the injectable drug.
U.S. sales of Fuzeon reached only $10.7 million in the third quarter of 2003 because of failure by Roche to aggressively market the medicine and unwillingness of insurers to pay for it, Bouchey said.
The share price of Trimeris, which had reached almost $56 in the past year, has fallen dramatically as a result of the disappointing Fuzeon demand.
But Bouchey predicted sales of Fuzeon will soon pick up, reaching annual sales of $500 million by 2005.
The companies on Monday said they would undertake a number of initiatives designed to boost Fuzeon sales and were working on ways to reduce the number of injections necessary for patients.
Bolognesi said Trimeris planned to spend between $22 million and $27 million on research and development in 2004. He added that the company had sufficient cash to fund operations for at least the next two years.
"If sales of Fuzeon improve, the two years cash situation obviously resolves itself," he added.
Shares of Trimeris fell to $18.10 on the Instinet electronic brokerage system after closing off 3.6 percent at $20.24 in regular Nasdaq trade on Monday
Nelson Vergel
Director, Program for Wellness Restoration (PoWeR)
An all volunteer non profit 501 (c) 3 organization.
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