ZymoGenetics (ZGEN)

[surf1944]

4:32PM Zymogenetics and Bayer restructure RECOTHROM agreements (ZGEN) 6.06 +0.05 : Co announced a restructuring of the U.S. co-promotion and ex-U.S. license and collaboration agreements with Bayer Schering Pharma AG and Bayer HealthCare relating to RECOTHROM Thrombin, topical (Recombinant). Effective January 1, 2010, co regains full promotion rights in the United States and all ex-U.S. rights except in Canada, where Bayer will market and sell the product. Under the terms of the revised agreements, active co-promotion by Bayer in the U.S. will end on December 31, 2009; Bayer will receive its normal sales commission through that date. Beginning in 2010, Bayer will receive a reduced sunset period commission through December 31, 2011, which was previously capped at $25 million per year and now will be subject to an aggregate maximum of $12 million. ZymoGenetics will no longer be required to pay Bayer U.S. sales bonus payments totaling $20 million, which were anticipated to have been payable in 2010 and 2011 or upon termination of the co-promotion agreement