Deal Early, Less Often: ZymoGenetics' Broad Deal with Serono

High-value, early-stage dealmaking is something of an oxymoron in the biopharmaceutical world; very few research collaborations or even preclinical licensing deals sport large up-front payments. The handful that do generally involve attempts by Big Pharma to improve R&D efficiency through outsourcing: the biotech partner in these cases—such as with Abgenix Inc. 's broad October 2003 antibody development deal with AstraZeneca PLC [See Deal] and Exelixis Inc. 's major discovery and development alliance with GlaxoSmithKline PLC [See Deal]—performs the lion's share of the preclinical development.

Thus the broad research, development and commercialization alliance inked in September between ZymoGenetics Inc. and Serono SA stands out not only for its size and scope—an unlimited number of proteins an up-front equity purchase and license fees totaling $81