Bristol-Myers Squibb has decided to jump into the hotter by the second race for hepatitis C therapies. BMS and ZymoGenetics have entered a global collaboration for PEG-Interferon lambda, a novel type 3 interferon currently in Phase Ib development for the treatment of Hepatitis C, and its related development program.
Terms
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Upfront: $85M plus $20M in licensing fees
Regulatory Milestones: $430M in Hep C; $287M in additional indications
Sales Milestones: $285M
Co-development: US shared costs - ZymoGenetics will pay 20 percent of the cost of developing pegylated interferon lambda, and Bristol-Myers will pay for 80 percent of costs with a 60 BMS / 40 ZymoGenetics share of profits. If ZymoGenetics doesn’t not exercise option to co-promote it will receive double digit royalties. Additionally, BMS can terminate ZymoGenetics’ co-promotion rights if Zymo’s cash balance falls below $35 million, and it is unable to regain the cash balance above $35 million within 10 days (ZymoGenetics would then get an additional royalty).
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PEG-Interferon lambda (IL-29) is a novel type 3 interferon currently in Phase Ib development for Hepatitis C. The native human protein Interferon lambda is generated by the immune system in response to viral infection. PEG-Interferon lambda has the potential to be uniquely differentiated from available interferon therapy because Interferon lambda mediates anti-viral activity through a receptor that is distinct from that used by Interferon alpha and is present on fewer cell types within the tissues of the body. As a result, the possibility exists for more targeted delivery of interferon therapy and an improved therapeutic index.
Simply put… a phenomenal deal for ZymoGenetics.
Don’t have time for analysis today but Luke Timmerman at Xconomy has a good one if you’re interested.
Bristol-Myers Squibb and ZymoGenetics Enter Global Collaboration on Novel Hepatitis C Compound
(Via Business Wire Health News.)
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Eben is a highly caffeinated business development associate at a small, cash sensitive pharmaceutical company somewhere in Massachusetts. He enjoys cliche-less banter, compartmentalization, non-equilibrium thermodynamics and NPV analysis. Agree or disagree with what he's posted? He encourages comments.
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