I sure hope Bristol-Myers is right. At $735 million net of cash, ZymoGenetics doesn't come cheap with Bristol-Myers blowing through about 10% of the $7.5 billion it had in the bank at the end of the second quarter.
Technically, ZymoGenetics has a drug on the market, but it only sold $20.9 million worth of Recothrom in the first half of the year. The drug that helps stop bleeding during surgery has to compete against King Pharmaceuticals'
But Bristol-Myers is basically buying ZymoGenetics for its pipeline. The companies are partners on pegylated-interferon lambda, a treatment for hepatitis C. The hope is that the drug produces fewer side effects and can unseat Roche's Pegasys and Merck's
Who knows, maybe I'm overreacting here. Bristol-Myers seems to have made a good move acquiring partner Medarex to gain full control of their melanoma drug ipilimumab. And management was willing to walk away from ImClone Systems rather than get into a bidding war with Eli Lilly
48% returns in a bear market? Alex Dumortier has the answer.
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