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Author: MESuther13 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 33  
Subject: Licensing Deal with Bayer. Date: 6/21/2007 12:24 PM
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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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Author: proper21 Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 32 of 33
Subject: Re: Licensing Deal with Bayer. Date: 6/25/2007 11:57 AM
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Hi MESuther13,

Thank you for replying,

I can assure you, I will be in this thread a lot,at least until
the FDA decision :).
I am in an growth medium term investment style for now.
but in the long run, I will try to identify long term holding too.

Back to ZGEN and Bayer,
I think ZGEN receive a fair deal.Not the best deal,but a fair deal.
My opinion is based on the help that Bayer will also provide in marketing the drug in USA local market.As we know OMRI have marketing agreement with Johnson&Johnson,an although ZGEN r-Thrombin suppose to be better performing then the OMRI one,some times drug success also depend on Marketing Power.

Not to mention Bayer ready to give upfront payment right here right now,that help ZGEN with the cash flow.Beside ZGEN should show good will,
so perhaps next time it have other potential drug coming out,lot of
company will like to deal with ZGEN.

What I really like is the way Bayer decide to pay ZGEN.It pay 30million now and 40million after approval.That show they are sure about FDA approving r-Thrombin,if they are not sure,they will pay 10million today,and 60million after approval.
What do you think?
Thank you.



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Author: prosper21 Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 33 of 33
Subject: Re: Licensing Deal with Bayer. Date: 10/26/2007 3:25 AM
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ZGEN is coming nearer to FDA PDUFA,
The stocks price is stable this last few weeks,
up and down only in small percentage.

Perhaps if the whole market situation is better,
ZGEN will increase higher coming toward PDUFA date January Next year.

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