Trimeris, Inc. (NASDAQ: TRMS) today announced financial results for the fourth quarter and full year ended December 31, 2010. The Company reported net income of $20.0 million, or $0.89 per share, for the year ended December 31, 2010 compared with $12.3 million, or $0.55 per share, for the year ended December 31, 2009. The year-to-year increase in net income is primarily driven by the Company’s previously reported entry into an agreement with F. Hoffmann-La Roche Ltd and Hoffmann-La Roche Inc. (“Roche”) during the third quarter that relieved Trimeris of any obligation to repay $18.7 million of deferred marketing expenses, which increased 2010 net income by the same amount. This increase was offset, in part, by Roche’s previously reported reduction of the royalty rate from 12% to 6% for rest of world (“ROW”) sales, combined with lower ROW sales. The Company reported net income of $1.2 million, or $0.05 per share, for the fourth quarter of 2010 compared with $7.2 million, or $0.32 per share, for the fourth quarter of 2009. The quarter-to-quarter decrease was due to the receipt in the fourth quarter of 2009 of a $12 million reverse termination fee pursuant to a terminated merger agreement. Full year 2010 total worldwide sales were $88.4 million compared to $112.2 million for 2009. Total worldwide sales for the fourth quarter of 2010 were $23.0 million compared to $25.5 million for the fourth quarter of 2009.
Adjusted Net Income
The Company reported fourth quarter 2010 net income of $1.2 million, or $0.05 per share, compared with $1.7 million, or $0.08 per share, in the fourth quarter of 2009 excluding the reverse termination fee (net of taxes and other adjustments) related to a terminated merger agreement. Excluding the effect of the agreement with Roche regarding deferred marketing expenses and the previously reported Novartis litigation settlement in 2010, the full year 2010 adjusted net income was $3.7 million, or $0.16 per share, compared with $6.8 million, or $0.30 per share for the year ended December 31, 2009 (see GAAP to Non-GAAP reconciliation table below). This decrease was primarily driven by lower FUZEON sales and the reduction of the royalty rate from 12% to 6% for ROW sales.