- Revenues of $10.4 Million, a 7 Percent Increase over Revenues
of $9.7 Million in the Third Quarter of 2006
- U.S. GAAP Net Income Increases to $5.5 Million from $3.4
Million in the Third Quarter of 2006
- U.S. GAAP Earnings Per Share Increases to $0.25 Per Share from
$0.16 Per Share in the Third Quarter of 2006
- Cash and Investments Increase to $63.3 Million from $48.6
Million at December 31, 2006
MORRISVILLE, N.C.--(BUSINESS WIRE)--Nov. 8, 2007--Trimeris, Inc.
(Nasdaq: TRMS) today announced financial results for the three months
ended September 30, 2007, reporting total revenues of $10.4 million,
an increase of 7 percent, compared to the same period last year. This
increase was primarily driven by net sales of FUZEON outside of the
U.S. and Canada, which reached $43.3 million, an increase of 47
percent over the same period last year. Worldwide sales of FUZEON,
reached $73.9 million, an increase of 17 percent over the same period
last year. All sales of FUZEON are recorded by F. Hoffmann-La Roche
Ltd. ("Roche"), Trimeris' collaborative partner.
For the three months ended September 30, 2007, the Company
reported net income of $5.5 million, or $0.25 per share, compared with
$3.4 million, or $0.16 per share, for the three months ended September
30, 2006. This result was primarily driven by increased FUZEON sales
and decreased operating expenses.
For the nine months ended September 30, 2007, the Company reported
net income of $18.4 million, or $0.83 per share, compared with $2.7
million, or $0.12 per share for the nine months ended September 30,
2006.
As previously announced, Roche returned to Trimeris all rights to
joint patents and other intellectual property related to
next-generation HIV fusion inhibitor peptides including our lead
candidate TRI-1144. As a result, the Company accelerated revenue
recognition for past milestone payments received from Roche into the
first nine months of 2007. Also included in net income for the nine
months ended September 30, 2007 are expenses of $4.3 million for the
reductions in workforce that occurred during the first nine months of
2007.
For the nine months ended September 30, 2007, the Company reported
Non-GAAP net income of approximately $13.3 million, or $0.60 per
share, compared with a net loss of $215,000 or a loss of $0.01 per
share, for the nine months ended September 30, 2006. Non-GAAP net
income for the three months ended September 30, 2007 does not show a
significant difference from GAAP net income and therefore is not
presented.
Cash, cash equivalents and investment securities
available-for-sale totaled $63.3 million at September 30, 2007,
compared to $48.6 million at December 31, 2006.
Reconciliations between GAAP and Non-GAAP earnings for the nine
months ended September 30, 2007 and 2006 are provided in the following
table:
Nine Months Ended Nine Months Ended
Sept. 30, 2007 Sept. 30, 2006
(in thousands (in thousands
except per share except per share
amounts) amounts)
(unaudited) (unaudited)
-----------------------------------
Net income (GAAP) $ 18,366 $ 2,685
Milestone Revenue (1) (9,369) (2,900)
Charge related to the
reductions in workforce (2) 4,264 --
-----------------------------------
Net income (loss) excluding
milestone revenue and charges
related to reduction in workforce
(Non- GAAP) $ 13,261 $ (215)
===================================
Diluted net income per share
(GAAP) $ 0.83 $ 0.12
-----------------------------------
Diluted net income (loss) per
share (Non-GAAP) $ 0.60 $ (0.01)
===================================
(1) On March 13, 2007, the Company entered into an agreement with
Roche that amended the terms of the Research Agreement. Under this
agreement, all rights and joint patents and other intellectual
property rights to the next generation fusion inhibitor peptides
falling under the Research Agreement, which includes our lead drug
candidate, TRI-1144, reverted to Trimeris. As a result of this
agreement, the Company accelerated revenue recognition for past
milestone payments received from Roche into the first quarter of 2007
because our period of joint development ended. These milestone
payments were previously being amortized over the length of the joint
research and development period of the next generation fusion
inhibitor peptides or through December 2012.
(2) During the nine months ended September 30, 2007, the Company
recorded a charge to the Statement of Operations related to the
reductions in workforce.
Conference Call
Trimeris will host a live conference call to discuss third quarter
2007 financial results at 5:00 p.m. Eastern Time, today. To access the
live call, please dial (800) 399-8403 (U.S.) or (706) 634-6565
(international). The conference ID number is 23609458. Telephone
replay is available approximately two hours after the call through
11:59 p.m. Eastern Time, November 22, 2007. To access the replay,
please call (800) 642-1687 (U.S.) or (706) 645-9291 (international).
The information provided on the teleconference is only accurate at the
time of the conference call, and Trimeris will take no responsibility
for providing updated information.
Live audio of the conference call will be simultaneously broadcast
over the Internet and will be available to members of the news media,
investors and the general public. The webcast can be accessed by going
to Trimeris' website, www.trimeris.com.
About Trimeris, Inc.
Trimeris, Inc. (Nasdaq: TRMS) is a biopharmaceutical company
engaged in the development and commercialization of novel therapeutic
agents for the treatment of viral disease. The core technology
platform of fusion inhibition is based on blocking viral entry into
host cells. FUZEON, approved in the U.S., Canada and European Union,
is the first in a new class of anti-HIV drugs called fusion
inhibitors. For more information about Trimeris, please visit the
Company's website at http://www.trimeris.com.
Non-GAAP Financial Information
In addition to disclosing financial results calculated in
accordance with Generally Accepted Accounting Principles ("GAAP"), we
have included certain non-GAAP financial measures that exclude the
charge related to the reductions in workforce and the recognition of
milestone revenue. The Company believes that the presentation of
results excluding the reductions in workforce and recognition of
milestone revenue provides meaningful supplemental information
regarding our financial results for the nine months ended September
30, 2007 as compared to the nine months ended September 30, 2006
because our financial statements for the nine months ended September
30, 2006 did not include a charge related to a reduction in our
workforce or an acceleration of the recognition of milestone revenue.
We believe that this financial information is useful to management and
investors in assessing our historical performance and results. The
Company will use these non-GAAP financial measures when evaluating its
financial results, as well as for internal planning and forecasting
purposes. The non-GAAP financial measures disclosed by the Company
should not be considered a substitute for or superior to financial
measures calculated in accordance with GAAP, and the financial results
calculated in accordance with GAAP and reconciliations to those
financial statements should be carefully evaluated. The non-GAAP
financial measures used by the Company may be calculated differently
from, and therefore may not be comparable to, similarly titled
measures used by other companies.
Trimeris Safe Harbor Statement
This document and any attachments may contain forward-looking
information about the Company's financial results and business
prospects that involve substantial risks and uncertainties. These
statements can be identified by the fact that they use words such as
"expect," "project," "intend," "plan," "believe" and other words and
terms of similar meaning. Among the factors that could cause actual
results to differ materially are the following: there is uncertainty
regarding the success of research and development activities,
regulatory authorizations and product commercializations; we are
dependent on third parties for the sale, marketing and distribution of
our drug candidates; the market for HIV therapeutics is very
competitive with regular new product entries that could affect the
sales of our products; the results of our previous clinical trials are
not necessarily indicative of future clinical trials; and our drug
candidates are based upon novel technology, are difficult and
expensive to manufacture and may cause unexpected side effects. For a
detailed description of these factors, see Trimeris' Form 10-K filed
with the Securities and Exchange Commission on March 16, 2007 and its
periodic reports filed with the SEC.
Trimeris, Inc.
Statements of Operations
(in thousands, except per share amounts)
(unaudited)
Three Months Nine Months
Ended Sept. 30, Ended Sept. 30,
2007 2006 2007 2006
-------- -------- -------- --------
Revenue:
Milestone revenue (1) $ 78 $ 789 $ 9,369 $ 2,900
Royalty revenue 4,781 3,391 11,862 8,379
Collaboration income (2) 5,518 5,559 15,692 13,168
-------- -------- -------- --------
Total revenue and collaboration
income 10,377 9,739 36,923 24,447
-------- -------- -------- --------
Operating expenses:
Research and development 3,809 3,840 9,865 13,981
General and administrative 1,674 2,658 10,150 8,741
-------- -------- -------- --------
Total operating expenses (3) 5,483 6,498 20,015 22,722
-------- -------- -------- --------
Operating income 4,894 3,241 16,908 1,725
-------- -------- -------- --------
Other income (expense)
Interest income 815 519 2,212 1,407
Gain on sale of equipment -- 7 7 7
Interest/accretion expense (115) (196) (519) (582)
-------- -------- -------- --------
Total other income (expense) 700 330 1,700 832
-------- -------- -------- --------
Income before taxes and cumulative
effect of change in accounting
principle 5,594 3,571 18,608 2,557
Income tax provision 54 124 242 124
-------- -------- -------- --------
Income before cumulative effect of
change in accounting principle 5,540 3,447 18,366 2,433
Cumulative effect of change in
accounting principle (3) -- -- -- 252
-------- -------- -------- --------
Net income $ 5,540 $ 3,447 $18,366 $ 2,685
======== ======== ======== ========
Basic net income per share before
cumulative effect of accounting
change $ 0.25 $ 0.16 $ 0.83 $ 0.11
Accounting change -- -- -- 0.01
-------- -------- -------- --------
Basic net income per share $ 0.25 $ 0.16 $ 0.83 $ 0.12
======== ======== ======== ========
Diluted net income per share before
cumulative effect of accounting
change $ 0.25 $ 0.16 $ 0.83 $ 0.11
Accounting change -- -- -- 0.01
-------- -------- -------- --------
Diluted net income per share $ 0.25 $ 0.16 $ 0.83 $ 0.12
======== ======== ======== ========
Weighted average shares used in
basic per share computations 22,108 21,911 22,047 21,889
======== ======== ======== ========
Weighted average shares used in
diluted per share computations 22,132 22,037 22,068 22,056
======== ======== ======== ========
Notes:
(1) On March 13, 2007, the Company entered into an agreement with
Roche that amended the terms of the Research Agreement. Under this
agreement, all rights and joint patents and other intellectual
property rights to the next generation fusion inhibitor peptides
falling under the Research Agreement, which includes the lead drug
candidate, TRI-1144, reverted to Trimeris. As a result of this
agreement, the Company accelerated revenue recognition for past
milestone payments received from Roche into the first quarter of 2007
because our period of joint development ended. These milestone
payments were previously being amortized over the length of the joint
research and development period of the next generation fusion
inhibitor peptides or through December 2012.
(2) Collaboration income represents our share of the net operating
results from the sale of FUZEON in the United States and Canada under
our collaboration agreement with Hoffmann-La Roche, Inc., our
collaborative partner. These net operating results consist of net
sales less cost of goods (gross margin), less selling and marketing
expenses and other costs related to the sale of FUZEON.
(3) Included in operating expenses for the three and nine months
ended September 30, 2007 are an expense reversal of $90,000 and an
expense of $4.3 million, respectively, for the reductions in workforce
that occurred during these periods. Excluding these charges, operating
expenses for the three and nine months ended September 30, 2007, would
have been $5.6 and $15.7 million, respectively.
Trimeris, Inc.
Condensed Balance Sheets
($ in thousands)
Sept. 30, Dec. 31,
2007 2006
(unaudited)
----------------------
Assets
Cash, cash equivalents and short-term
investment securities available-for-sale $ 57,142 $ 48,035
Other current assets 11,301 14,445
----------------------
Total current assets 68,443 62,480
Property, furniture and equipment - net 1,801 2,160
Long-term investment securities available-for-
sale 6,145 604
Total other assets 9,937 9,659
----------------------
Total assets $ 86,326 $ 74,903
======================
Liabilities and Stockholders' Equity
Total current liabilities $ 6,331 $ 8,907
Long term portion of deferred revenue 1,635 9,151
Accrued marketing costs 17,807 17,288
Accrued compensation - long-term 800 1,072
Other liabilities 719 713
----------------------
Total liabilities 27,292 37,131
----------------------
Total stockholders' equity 59,034 37,772
----------------------
Total liabilities and stockholders' equity $ 86,326 $ 74,903
======================
FUZEON Net Sales
(Recognized by Roche, our collaborative partner)
($ in millions)
(unaudited)
Three Months Nine Months
Ended,(a) Ended, (a)
--------------------- ---------------------
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2007 2006 2007 2006
---------- ---------- ---------- ----------
United States and Canada $30.6 $33.5 $ 92.8 $ 92.0
Rest of World 43.3 29.5 107.5 83.7
---------- ---------- ---------- ----------
Worldwide Total $73.9 $63.0 $200.3 $175.7
========== ========== ========== ==========
(a) may not add due to rounding
CONTACT: Trimeris, Inc.
Andrew Graham, 919-419-6050
Director of Finance
SOURCE: Trimeris, Inc.
