By Mary Welch

Trimeris Inc. has commitments to raise $65 million through a private placement of 1.75 million shares of common stock. The money will be earmarked to fund the clinical development of T-20 and T-1249, its HIV fusion inhibitors.

After the placement, which should close this week, the Durham, N.C.-based company will have more than 15 million shares outstanding. The per-share price is about $37.14. Trimeris' stock (NASDAQ:TRMS) closed Friday at $48.50, up $6.75.

"This will allow us to completely fund the clinical trials of our lead candidate and a good way through the trials of our follow-on inhibitor," said Dani Bolognesi, Trimeris' CEO. "We have cash on hand of about $40 million and our burn rate is about $4 million a month. So this will give us about another year of life."

Both T-20 and T-1249 are peptide drugs that work against HIV by keeping the virus from attaching to cells rather than by targeting already infected cells. This mechanism is distinct from those of currently available treatments, which prevent HIV replication after the virus infects cells.

In Phase II clinical trials, T-20 demonstrated the ability to inhibit the fusion of HIV to uninfected cells. The product's impact on viral load after 32 weeks of treatment was consistent with that at 16 weeks, at which time viral load was suppressed more than 95 percent. In addition, for the first time, it was shown that treatment resulted in a significant increase in the level of CD4-positive white blood cells, which is another key marker of efficacy.

"We expect to start Phase III trials in mid-2000," Bolognesi said.

In addition, patient accrual is nearly complete in two additional clinical trials: a second Phase II trial of T-20, and a Phase I/II trial of T-1249, the follow-on fusion inhibitor.

According to a research report released by Deutsche Banc Alex. Brown, of New York, Trimeris' HIV fusion inhibitors "represent the next major breakthrough in the treatment of this disease. As approximately 40 percent of HIV patients now have failed multiple drug regimens, there is a tremendous medical need for Trimeris' HIV fusion inhibitors."

The investment firm estimates that each product could potentially generate sales of at least $500 million in the U.S.

The company will present data on the products' clinical trials at this week's conference on Retroviruses and Opportunistic Infections.

Both products are partnered with Roche Holdings Ltd., of Basel, Switzerland, in a deal potentially worth in excess of $88 million. In the U.S., the two companies are 50-50 partners, sharing the costs of development and splitting any future profits. Roche retains the rights to develop and market in the rest of the world and is funding all of those activities. Trimeris will receive royalties on overseas sales. (See BioWorld Today, July 13, 1999, p. 1.)