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ZymoGenetics starts study, receiving $70 million
ZymoGenetics starts study on potential hepatitis C drug, receives $70 million from partner

* On 6:26 am EDT, Tuesday October 27, 2009

SEATTLE (AP) -- ZymoGenetics Inc. said Tuesday it started a midstage study on a potential hepatitis C treatment, triggering a $70 million payment from its partner, Bristol-Myers Squibb Co.

The Seattle company is studying PEG-Interferon lambda called IL-29, as a potential combination treatment the hepatitis C drug ribavirin. It could receive up to $1.12 billion in the collaboration with Bristol-Myers.

Shares of ZymoGenetics closed at $5.40 Monday, while shares of Bristol-Myers, which is headquartered in New York, closed at $21.92.

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