Bristol Bid For ZymoGenetics Looks Even Better In Light Of Promising Melanoma Data

ZymoGenetics Inc. shareholders who want a better offer than the $885 million acquisition Bristol-Myers Squibb Co. offered on Wednesday, September 8, aren't likely to get one. [See Deal] ( See "From HCV Partner to Acquirer, BMS Makes $885 Million Offer for ZymoGenetics," "The Pink Sheet" DAILY , September 7, 2010 Also see "From HCV Partner To Acquirer, BMS Makes $885 M Offer for ZymoGenetics" - Pink Sheet, 7 September, 2010..)

It's a disappointing result for a company with nearly 30 years of biotech discovery and grand ambitions behind it. ( See "Novo-ZymoGenetics: The Next Roche-Genentech?" IN VIVO , July 2007[A#2007800109 ].) Dim hopes for a price bump brightened for a moment September 29, when the biotech reported promising mid-stage data for its IL-21 immunotherapy program targeting metastatic melanoma. But ZymoGenetics stock quickly settled back just below Bristol's $9.75-per-share price currently on offer. It seems a sign that the melanoma data can only provide upside to Bristol, which also gains full rights to the Phase III hepatitis C program PEG-interferon lambda, to which the pharmaceutical company licensed broad rights in early 2009