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Published Sat, Oct 03, 2009 05:10 AM
Modified Fri, Oct 02, 2009 09:35 PM

South Koreans acquire Trimeris

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Trimeris, a once-promising biotech company that failed to reach its potential, is being acquired by a South Korean medical equipment company.

Arigene Co. said Friday it will pay about $81million in cash for Trimeris, which has just a handful of employees in Durham.

The $3.60-per-share tender offer, which shareholders must approve, represents a premium of about 40 percent over Thursday's closing price. Shares fetched more than $30 at their peak in 2000.

Trimeris is one of the few Triangle drug companies to shepherd a drug from the research-and-development stage to market. But sales of its powerful AIDS drug Fuzeon were hindered by its $20,000-a-year price tag and its side effects.

Fuzeon, based on AIDS research conducted at Duke University, generated $167million in sales last year -- down 37 percent from a year earlier.

Trimeris, which receives royalties from Fuzeon sales, reported second-quarter revenue of $3.6million -- down from $4.5million in the same quarter last year.

The boards of directors of Trimeris and Arigene have approved the deal. Some Trimeris shareholders already have lined up in favor of the transaction, according to the two companies.

Trimeris will become a wholly owned subsidiary of Arigene if the deal goes through.

Trimeris shares closed Friday at $3.53 -- up 96 cents.

Staff writer David Ranii

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