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TRMS - Trimeris stock plunges on CEO's departure
Friday March 16, 3:44 pm ET

The stock price of Trimeris collapsed Friday following the company's announcement that both its chief executive officer and chief financial officer have tendered their resignations.
The company said late Thursday afternoon that co-founder and CEO Dani Bolognesi, who also acts as chief scientific officer, would resign today. He will stay on as a "scientific consultant" to Trimeris through October 2008. Robert Bonczek, CFO and general counsel, plans to step down on April 30.

Shares of Trimeris were down 31.5 percent to $6.90 in midafternoon trading Friday.

Trimeris (NASDAQ: TRMS - News) officials did not cite a reason for the departure of either Bolognesi or Bonczek.

The company has named E. Lawrence Hill Jr. acting president and chief operating officer. Hill currently is president of Hickey & Hill Inc., a management services firm, and formerly served as CEO of Deltagen Inc. from 2003 through 2005.

Thursday's announcement came on the heels of a difficult year for Trimeris, whose HIV drug Fuzeon has failed to reach expectations. The company announced in December plans to slash 25 percent of its work force.

Also Thursday, the company released 2006 fourth quarter and full-year financial results above Wall Street expectations.

Trimeris reported 2006 full-year net income of $7.4 million, or 34 cents per diluted share, compared to a 2005 full-year loss of $8.1 million, or 37 cents per share. Full-year revenue nearly topped $37 million in 2006, up from $19 million a year earlier.

Analysts polled by Thomson Financial had projected, on average, full-year earnings of 28 cents per share on revenue of $35.84 million.

Trimeris reported 2006 fourth quarter net income of $4.7 million, or 21 cents per diluted share, up from nearly $3.8 million, or 17 cents per diluted share. Fourth quarter revenue in 2006 was $12.5 million, compared to nearly $8 million in the same period a year earlier.

Company officials attributed the earnings to higher sales of HIV drug Fuzeon, which totaled $73.3 million in 2006.

In yet another announcement Thursday, Trimeris said it has altered an agreement signed in 2000 with drug maker Roche, its partner on Fuzeon. Trimeris said it would pay a "nominal royalty" to Roche for the return of rights to joint patents and other intellectual property that could be used in the development of future HIV drugs.

Published March 16, 2007 by the Triangle Business Journal