ZymoGenetics Unloads Drug Candidates to Cut Costs, Spin Off New Company
Summary
That’s the impression I got today from Seattle-based ZymoGenetics, which said it is licensing away the rights to eight different drug candidates in early development to a new startup company called Seattle Life Sciences.Under the deal, ZymoGenetics (NASDAQ: ZGEN) is handing over the rights to the drugs in exchange for an equity stake in the startup company, milestone payments on success in development, and royalties if Seattle Life Sciences can turn them into commercial products, said ZymoGenetics spokeswoman Susan Specht.This is part of ZymoGenetics CEO Doug Williams’s three main strategies for this year: boosting sales of recombinant thrombin, pushing development of pegylated interferon lambda for hepatitis C, and cutting R&D costs on programs outside its core business, Specht says.With the rights to these drugs in hand, Seattle Life Sciences hopes to now raise money from angels, venture capitalists, or corporate partners to continue developing these drugs through animal tests, Jaspers says.“We think they have a lot of value and potential to be useful medicines.” If the new company has luck attracting funding, Jaspers hopes to hire a few of his former colleagues who lost their jobs in the 161-person layoff there last week.