Replies to post #71408 on Biotech Values

[dewophile]

perhaps a collaboration is in the offing?
i say that tongue in cheek - i doubt it is a serious pursuit given the lack of perceived advantage of recombinant agents based on recothrom adoption. then again bruce carter stated in no uncertain terms COGs for recothrom was better than evicel - so in theory if they can make a recombinant sealant and compete on price there could be potential there
i'm not so sure it's as easy as just mixing thrombin and fibrinogen though..

[mlkrborn]

ZGEN
Ahead of the Bell: ZymoGenetics rises on deal
Tuesday January 13, 9:05 am ET
ZymoGenetics shares rise in premarket trading on Bristol-Myers Squibb development deal

NEW YORK (AP) -- Shares of ZymoGenetics Inc. jumped in premarket trading Tuesday after the biotechnology company signed a deal worth up to $1.2 billion with drug developer Bristol-Myers Squibb Co.

The stock gained $1.75, or 56 percent, to $4.87 before the opening bell. The stock has ranged between $2.06 and $15.23 over the past year.

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The $1.2 billion dollar deal to develop a hepatitis C drug comes as many biotech companies face potential financing problems amid tight credit markets.

Citi analyst Dr. Lucy Lu said the deal's initial payments of $105 million, plus a $95 million milestone payment, should provide the company with enough operating cash for two or more years.

She reaffirmed a "Hold" rating and $5 share price target.

Under the deal, Bristol-Myers pays $85 million up front for rights to develop the compound and $20 million for a licensing fee. Additional payments could total over $1 billion.

The companies will test the drug jointly in the United States and Europe.

About 170 million people worldwide are infected with hepatitis C, a virus transmitted by blood that damages the liver and is difficult to treat.