Latent Value Finds a Home

Having refocused its R&D exclusively on immunology as part of a cost-cutting effort, ZymoGenetics Inc. hopes to unlock some downstream value by out-licensing rights to a collection of shelved programs to Seattle Life Sciences Inc. The newco was set up expressly to develop the preclinical assets by way of venture financing and/or partnership.

ZymoGenetics last week granted Seattle Life Sciences exclusive worldwide rights to eight programs, including three mAbs and five protein therapeutics with potential for treating cancer, kidney and liver fibrosis, and wound repair. ZymoGenetics is eligible for milestones and royalties and is entitled to an equity interest in the newco in connection with a future venture financing...