Coverage Initiated: November 2002
Coverage Terminated: October 2010

ZymoGenetics (ZGEN) was acquired by Bristol Myers (BMY) in October 2010 for $9.75/share cash. This was a disappointing end to a story we thought had significant potential.

Zymo marketed RecoThrom, an anti-thrombin clotting agent used to help keep the surgical field clear of blood during surgery. This a recombinant protein, making it superior to the cow-based thrombin product Thrombin-JMI currently marketed by King Pharmaceuticals (KG). Almost no patients generate an immune response to RecoThrom and, if they do, the immune response is not cross-reactive with normal human blood factors. Patients do generate antibodies to cow based Thrombin-JMI and those antibodies can and do cross-react with normal human blood factors. In data presented in 2010, patients who received Thrombin-JMI had over 160% greater use of blood products during and after surgery than patients undergoing similar surgeries where the surgeon did not use Thrombin-JMI.

Zymo's most promising drug, however, was still in the clinic at the time of acquisition. Interferon-lambda is a potential substitute for interferon-alpha in the treatment of hepatitis. Partnered in a very large deal with Bristol Myers Squibb (BMY), the companies hope to fast-track the drug into a position as one of a cocktail of drugs to treat this viral infection.

The company also has interest in atacicept, a drug for autoimmune disease; IL-21 for cancer; and a number of other drugs in partnered development.

A complete listing of our research on ZymoGenetics is available by clicking here.