ZymoGenetics, Bristol-Myers deal

Bristol-Myers plans to acquire partner ZymoGenetics in a tender offer at $9.75 per share, or about $885 million in cash. The price is an 84% premium to ZymoGenetics' close of $5.30 on Sept. 7, before the deal was announced. The companies said that net of ZymoGenetics' cash, the purchase price would be about $735 million. ZymoGenetics reported 2009 revenue of $137 million. The boards of both companies have unanimously approved the tender offer, which started Sept. 10 and will close after 30 days.

Bristol-Myers said the deal will complement and enhance its HCV, cancer and immunoscience programs. The pharma gains full ownership of the partners' PEG-IFN lambda, an IL-29 in Phase IIb testing to treat HCV with data expected in 1Q11. The companies are co-developing and commercializing PEG-IFN lambda for HCV under a 2009 deal. Bristol-Myers also will gain Recothrom, a recombinant human thrombin marketed in the U.S. as an aid in achieving hemostasis during surgery, as well as a recombinant IL-21 in Phase IIb testing for metastatic melanoma (see BioCentury, Jan. 19, 2009). ...