Trimeris New Agreement (NASDAQ:TRMS)

Trimeris Inc today has announced that they have entered into a definitive merger agreement with the Korean corporation, Arigene Co. Ltd., which is currently trading on the Korean Securities Dealer Association Quotation System. Trimeris Inc is a biopharmaceutical company that is currently engaged in the commercialization of therapeutic agents of viral diseases. They are well known for their FUZEON drug, which is a first class anti-HIV drugs approved in the United States, Canada and European Union. On the other hand, Arigene Co. Ltd is a manufacturer and developer and does marketing of U-Healthcare Systems and other medical equipments in Korea. With this merger both the companies will be able to expand their profiles into different sector for their growth in the near future.

Trimeris Inc will receive US$ 81 million as per the acquisition deal and in return Trimeris shares will be bought by Arigene Co. Ltd at the same price per share paid in the tender offer.  The tender offer price will constitute around 55 percent premium to Trimeris average share price over the last ninety days. Shareholders of Trimeris representing approximately 36 percent of outstanding shares have executed voting agreements to support the transaction. The board of directors at Trimeris and Arigene together has approved the transaction and both the parties are looking forward to complete the merger and tender offer by the last quarter of this year.

If the tender offer is successful, RTM Acquisition Company, a wholly owned subsidiary of Arigene will be merged with Trimeris Inc and Trimeris will continue as the surviving corporation and become a wholly owned subsidiary of Arigene Co. Ltd.

However, analysts state that there are certain known and unknown risk and uncertainties that may change the actual results, levels of activity, performance and achievements of Trimeris Inc.