Editor’s note: The full text of New York investment firm HealthCor to management at Trimeris reads as follows:
“We have made several attempts to reach Mr. Julian Baker by telephone this week but Mr. Baker did not return our phone calls. We are, therefore, writing to set forth our views as the largest shareholder of Trimeris, Inc. ("TRMS" or the "Company").
“In our letter dated August 13, 2007 to you, we expressed our view that the Company should: (i) cease its clinical development activities and eliminate related expenses, and (ii) consider strategic alternatives such as a sale of the business in order to maximize shareholder value.
“On December 10, 2007, the Company issued a press release announcing a plan to reduce the Company’s workforce and wind down the research and development activities of TRMS. The press release further announced that the Company will evaluate a ‘full range of options for maximizing shareholder value, including strategic transactions.’
“The Company’s plans, however, only partially address our concerns. Although we are very supportive of the cost reduction initiatives, we note that the continued development of TRI-1144 is an expensive proposition and one that we would like to follow closely. We have significant expertise in this area.
“In addition, the Company has not addressed our concerns relating to a sale of the business. As we have mentioned during the course of our conversations with Mr. Baker and Mr. Martin Mattingly, the newly appointed CEO of the Company, we are not in favor of strategic transactions other than those involving a sale of the business. In particular, we recognize that TRMS has significant cash assets but we do not want this cash to be risked in making acquisitions. Rather, the cash should be returned to the owners of the business – the shareholders – through a dividend or in the context of a sale transaction.
“Given the importance of the decisions that face TRMS and their potential dramatic impact on shareholder value, we feel it is imperative that we have representation on the TRMS board of directors as soon as possible. Our representatives would be committed to a prompt and full exploration of strategic alternatives, in the interest of maximizing value for all shareholders. We propose to have two members of our firm, Arthur Cohen and Evan Sturza, serve in such capacity. Attached is a brief biography of Mr. Cohen and Mr. Sturza.
“We appreciate your prompt response to our request.”
HealthCor Management, L.P.