Trimeris Reports Financial Results for the First Quarter 2009
On Friday May 8, 2009, 4:00 pm EDT
DURHAM, N.C.--(BUSINESS WIRE)--Trimeris, Inc. (Nasdaq: TRMS - News) today announced financial results for the quarter ended March 31, 2009, reporting net income of $2.1 million, or $0.10 per share compared with $2.3 million, or $0.10 per share for the quarter ended March 31, 2008. This result was primarily driven by decreased FUZEON® sales and an increase in tax expense offset, in part, by reduced operating expenses and a credit to cost of goods sold included in collaboration income.
Royalty revenue for the quarter ended March 31, 2009 was $2.0 million compared with $2.8 million for the quarter ended March 31, 2008. This decrease was driven by a decrease in net FUZEON® sales outside the U.S. and Canada. Net sales of FUZEON® outside the U.S. and Canada for the first quarter of 2009 were $17.8 million, down 31 percent from $25.7 million in the first quarter of 2008.
Collaboration income for the quarters ended March 31, 2009 and March 31, 2008 was $2.4 million for each quarter. The decrease in net sales of FUZEON® in the U.S and Canada in 2009 was offset primarily by decreased selling and marketing expenses and a credit to cost of goods sold of $1.1 million (see note 1 to the Statement of Operations). Net sales of FUZEON® in the U.S. and Canada for the first quarter of 2009 were $10.0 million, down 41 percent from $17.0 million in the first quarter of 2008.
Operating expenses for the quarter ended March 31, 2009 were $1.4 million compared with $2.7 million for the quarter ended March 31, 2008. This decrease was primarily driven by a decrease in research and development expenses as the Company no longer staffs any research and development functions.
The income tax provision for the quarter ended March 31, 2009 was $1.0 million compared with $257,000 for the quarter ended March 31, 2008. This increase was driven by an ownership change under Section 382 of the Internal Revenue Code of 1986, as amended, which occurred in December 2008. The effects of this ownership change were the imposition of a $457,000 annual limitation on the use of net operating loss carryforwards, tax credits and built-in loss items attributable to periods before the change. Earnings over the annual limitation will now be subject to corporate income taxes.
Cash, cash equivalents and investment securities available-for-sale totaled $33.1 million at March 31, 2009, compared to $31.6 million at December 31, 2008.
Wholesaler Inventory
Historically in the U.S. the Company has observed that wholesaler inventory levels of FUZEON® generally increase at the end of the fourth quarter; that is wholesaler inventory levels generally are above the average wholesaler inventory of approximately 25 days.
Based on information provided by Roche, our collaboration partner, we believe average wholesaler inventory at the end of 2008 was approximately 53 days but that by March 31, 2009 the wholesaler inventory had returned to the average of 25 days. The Company believes that the decrease in wholesaler inventory impacted sales for the first quarter of 2009.
2009 Guidance
The Company updated its guidance that it expects its total operating expenses in 2009 to be in the range of $4.5 million to $6.0 million.
Earnings Conference Call
The Company announced today that it will not be conducting a conference call in connection with this earnings release.
surf's up......crikey
