Trimeris to add two investors to its board

Trimeris has fulfilled the request of its largest investor, HealthCor Management, and appointed two of HealthCor's founders to its board of directors.

HealthCor, a New York investment firm that owns nearly 18 percent of Morrisville-based Trimeris, has been agitating for the AIDS drug company to be sold. On Feb. 1, HealthCor filed a letter with the Securities and Exchange Commission expressing concern that Trimeris might decide to make an acquisition rather than put itself up for sale.

Trimeris responded by announcing late Friday that it is appointing Arthur B. Cohen and Joseph P. Healey, two HealthCor founders, to its board.

Trimeris once was one of the Triangle's most promising young biotechnology companies, but its AIDS drug Fuzeon -- its only product -- fell short of high expectations. Sales were hampered by the drug's steep price -- more than $22,000 for a year's supply -- and resistance from patients who did not like injecting the drug.

In December, Trimeris announced plans to halt its research and development efforts, lay off an undisclosed number of researchers and "evaluate a full range of options for maximizing shareholder value, including strategic transactions." That announcement followed on the heels of the appointment of Martin Mattingly as CEO -- the company's fourth chief executive in a year's time.

Sales growth of Fuzeon fell to 7 percent last year, from a 20 percent growth rate two years ago after the introduction of two new medicines that compete with the Trimeris drug.

This morning, shares of the company traded unchanged at $6.53. The stock is down 50 percent in the past year.