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URL:  http://boards.fool.com/licensing-deal-with-bayer-25610380.aspx

Subject:  Licensing Deal with Bayer. Date:  6/21/2007  12:24 PM
Author:  MESuther13 Number:  31 of 33

Here is a story that ran in The Seattle Times a few days ago.

http://tinyurl.com/3dwvgb

Seeking a fresh infusion of cash and global marketing expertise, ZymoGenetics cut a licensing deal with European pharmaceutical giant Bayer HealthCare to jointly deploy the Seattle biotechnology company's first expected product since it went public five years ago. ZymoGenetics said the agreement it is announcing today will bring $30 million upfront from Bayer and $40 million after the federal approval of rThrombin, which helps control surgical bleeding.

My only concern (if you read the entire article) is the part about Bayer getting the right to market rThrombin outside the U.S. indefinitely while only paying ZymoGenetics "up to 20 percent in royalties." I understand the reality involved, ZymoGenetics is just too small to take on a task that huge, but the greedy side of me is asking "you couldn't do better than 20%???" 60/40 I'd be fine with, but 80/20? We'll see how it turns out.

MESuther13
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