Trimeris, following up on good news about its AIDS drugs, is going to offer 2 million shares of stock in an attempt to raise some cash.
Wall Street reacted negatively to the news.
Shortly after Trimeris said it had filed the necessary statement with the Security and Exchange Commission for the proposed offering of shares, its stock dropped more than five percent, or $2.57 a share, to $47.42. That’s also $5.78 off the stock’s one-year high of $53.20 on May 15. The stock closed Fridat at $47.55, down $2.44 or 4.88 percent for the day.
In a statement, Trimeris said the money raised would be “used to fund the clinical development and commercialization” of its two leading drug candidates, Fuzeon and T-1249. Both are on fast track toward approval by the Federal Drug Administration after positive results in trials.
Morgan Stanley & Co., Goldman, Sachs & Co., Lehman Brothers Inc. and Banc of America Securities LLC will handle the offering.
But concerns have been raised recently about Trimeris’ partner, Roche, and its capacity to produce Fuzeon. International attention also shifted this week toward the pricing for the drug. Both companies have said additional investment in facilities will be required to boost production capacity.
According to The Associated Press, the drug may cost between $10,000 and $15,000 per year per patient. But Fuzeon’s cost should be kept in perspective, according to Dr. James Thommes at Roche who is acting as the drug’s medical director. He said the drug would keep people from expensive hospital stays and prolong lives. “No one wants drug companies to stop looking at ways to treat AIDS” because of expense issues, Thommes told The AP.
