Piper Jaffray Upgrades Trimeris (TRMS) to Neutral

March 4, 2009 7:37 AM EST

Piper Jaffray & Co. upgrades Trimeris, Inc. (Nasdaq: TRMS) from Sell to Neutral. Price target lowered from $2.50 to $1.40.

Piper analyst says, "We believe that in the near term with Fuzeon price increases each year in the U.S. and minimal operating expenses that TRMS can remain cash flow positive. We also believe that Roche is not likely to run Fuzeon at a significant loss in N. America and could use price increases to offset loss in demand, and therefore, it is unclear what the risk is that the Fuzeon JV turns to a loss. TRMS is currently trading below its current cash position, and therefore, we are upgrading to a Neutral, and are lowering our price target to the current cash per share value of $1.40. We remain cautious on the longer-term outlook for TRMS given the declining prescription trends and changing HIV salvage treatment paradigm, with many new agents marketed and in late stage development."

Trimeris, Inc. is a biopharmaceutical company primarily engaged in the commercialization of a class of antiviral drug treatments called fusion inhibitors for use in human immunodeficiency virus (HIV) treatment.

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