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$12 million breakup fee drives up Trimeris earnings

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DURHAM, N.C. – A $12 million breakup fee from Arigene lifted profitability for pharmaceutical firm Trimeris (Nasdaq: TRMS) in 2009 even as sales of its HIV drug Fuzeon fizzled.

The Korean firm pulled out of an $81 million deal to buy Trimeris last fall, triggering the fee. Arigene said it was unable to secure financing for the buyout.

For the year, Trimeris reported a profit of $12.3 million, or 55 cents per share, compared to $8 million for 2008.

Without the termination fee, Trimeris said full-year earnings would have been $6.8 million, compared to $10.7 million in 2008.

Fuzeon sales declined 32 percent in the fourth quarter to $16.5 million, Trimeris sells Fuzeon in partnership with Roche. Sales have been declining steadily due to the drug’s high cost, the difficulty of its administration and the availability of other treatments.

Trimeris said Fuzeon sales worldwide fell to $25.5 million in the last quarter. In the same quarter of 2008, sales were $40.5 million.
In the U.S. and Canada, sells fell even more, down 44 percent to $9 million.

The U.S.-Canada sales were the lowest in two years. In the first quarter of 2008, sales in those markets were $17 million.

For the year, Fuzeon produced $112.2 million sales, a 33 percent drop from 2008’s total of $167 million.

In 2007, Fuzeon sales were nearly $267 million.

Read here for the complete earnings report.

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