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Bristol-Myers to Develop Hepatitis C Drug Peg-Interferon Lambda With ZymoGenetics
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BY JOHN KELL
Bristol-Myers Squibb Co. and ZymoGenetics Inc. will collaborate to develop a hepatitis C treatment in a deal that could eventually bring in over $1 billion to ZymoGenetics.
Under the agreement, Bristol-Myers will pay ZymoGenetics $85 million in cash for the development and commercialization rights to PEG-Interferon lambda, a type 3 interferon in Phase Ib development, and an additional license fee of $20 million in 2009.
ZymoGenetics could receive additional payments of as much as $430 million based on development and regulatory milestones of PEG-Interferon lambda, up to $287 million for other potential indications and up to $285 million based on sales-based milestones.
The companies will co-develop the treatment in the U.S. and Europe, and share development costs.
In a joint news release, ZymoGenetics said it is expected to conduct a "significant" portion of continuing Phase I and II development and will have the option to co-promote in the U.S. and share profits in product sales. However, ZymoGenetics could opt out of development, promotion and profit-sharing in the U.S., in which case it would receive royalties on sales world-wide.
Outside the U.S., Bristol-Myers will be responsible for commercialization, and ZymoGenetics will receive royalties on product sales.
The combined treatment for hepatitis C will make an "ideal fit" for Bristol-Myers's emerging portfolio of small-molecule antivirals, said Francis Cuss, the company's senior vice president of discovery and exploratory clinical research.
Last year, Bristol-Myers received a nonexclusive, world-wide license to its patents claiming Ig fusion proteins in exchange for a lump-sum payment of $21 million to ZymoGenetics. Additionally, ZymoGenetics terminated a related patent-infringement lawsuit filed in August 2006 against Bristol-Myers.
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