Monday, ZymoGenetics Inc. (ZGEN) announced that its collaboration with Bristol-Myers Squibb Co. (BMY) for hepatitis C compound PEG-Interferon lambda has been cleared by the United States Federal Trade Commission and Department of Justice clearance under provisions of the Hart-Scott-Rodino Antitrust Improvements Act.
PEG-Interferon lambda, (IL-29) is a novel type 3 interferon currently in Phase 1b development for Hepatitis C and is expected to be a more targeted therapy. Now that the collaboration agreement has become effective, following clearance, ZymoGenetics will receive payment of an $85.0 million licensing fee.
Under the terms of the agreement signed in January, apart from the upfront cash payment of $85 million, ZymoGenetics will receive an additional license fee of $20 million this year. In addition, ZymoGenetics could receive payments of up to $430 million based on pre-defined development and regulatory milestones for PEG-Interferon lambda in Hepatitis C, up to $287 million in development and regulatory milestones for other potential indications, and up to $285 million based on pre-defined sales-based milestones.
ZGEN closed Friday's trade at $4.15, unchanged from the previous day's close. BMY closed the day's trade at $18.41.
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