Bristol-Myers to acquire ZymoGenetics

Bristol-Myers Squibb Co. (NYSE:BMY) plans to acquire partner ZymoGenetics Inc. (NASDAQ:ZGEN) in a tender offer of $9.75 per share, or about $885 million in cash. The price is an 84% premium to ZymoGenetics' close of $5.30 on Tuesday, before the deal was announced. The companies said that net of ZymoGenetics' cash, the purchase price would be about $735 million. The boards of both companies have unanimously approved the tender offer, which is expected to start Sept. 9 and close after 30 days.

Bristol-Myers said the deal will complement and enhance its efforts in HCV, cancer and immunoscience. The pharma will gain full ownership of the partners' PEG-IFN lambda, an IL-29 in Phase IIb testing to treat HCV. Last year, ZymoGenetics and Bristol-Myers partnered to co-develop and commercialize the product. Bristol-Myers also will gain Recothrom, a recombinant human thrombin marketed in the U.S. as an aid in achieving hemostasis during surgery, as well as a recombinant IL-21 in Phase IIb testing for metastatic melanoma. ZymoGenetics reported 2009 revenue of $137 million. ...