Trimeris, Inc. (NASDAQ: TRMS), today reported second quarter 2011 financial results. As previously reported, Trimeris entered into a new royalty arrangement with F. Hoffmann-La Roche Ltd. and Hoffmann-La Roche Inc. (collectively, “Roche”) pursuant to an Amended and Restated Agreement dated as of May 25, 2011 and effective as of January 1, 2011 (the “New Roche Agreement”), which is described in footnote 1 to the attached statements of operations. Because the New Roche Agreement fundamentally changed the calculation of amounts payable to Trimeris, comparisons of financial results between the quarters and six month periods ended June 30, 2011 and June 30, 2010 are not directly comparable.
Net income for the quarter ended June 30, 2011 was $673,000 or $0.03 per share compared with net income of $1.3 million or $0.06 per share for the quarter ended June 30, 2010. For the six months ended June 30, 2011, Trimeris reported net income of $606,000, or $0.03 per share, compared with $2.3 million, or $0.10 per share for the six months ended June 30, 2010.
The overall decline in net income for the quarter and six months ended June 30, 2011 compared to the corresponding periods in 2010 resulted primarily from decreased worldwide net sales of FUZEON and increased general and administrative fees related to the Trimeris process to evaluate and identify a strategic partner as well as Trimeris’ proposed merger with Synageva BioPharma Corp. (“Synageva”) described below and other adjustments, offset by certain payments from Roche.
Proposed Synageva MergerAs previously reported, on June 13, 2011, the Company entered into an Agreement and Plan of Merger and Reorganization (the “Synageva Merger Agreement”) with Synageva. Pursuant to the terms and subject to the conditions set forth in the Synageva Merger Agreement, Synageva would become a wholly-owned subsidiary of Trimeris (the “Synageva Merger”). Completion of the Synageva Merger is subject to various conditions, including the approval of the stockholders of both Trimeris and Synageva. On July 13, 2011, Trimeris and Synageva filed a Registration Statement on Form S-4 with the Securities and Exchange Commission (the “SEC”). This Registration Statement provides additional information regarding the Synageva Merger.