This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Bristol-Myers Pays Up for ZymoGenetics

Stock quotes in this article: BMY, ZGEN

NEW YORK ( TheStreet) -- Bristol-Myers Squibb (BMY) Tuesday said it's agreed to acquire ZymoGenetics (ZGEN) for an eye-popping 84% premium.

The deal values shares of ZymoGenetics, a Seattle-based biotech whose products in development include a Hepatitis C treatment, at $9.75 each. The stock closed Tuesday's session at $5.30, and was down 14% so far in 2010 prior to the announcement. ZymoGenetics's stock hasn't traded above $10 since March 2008.

Overall, the transaction is worth about $885 million. Net of ZymoGenetics' cash, the aggregate value of the deal is $735 million.

Bristol-Myers said the acquisition has already received the unanimous approval of the boards of both companies, and that shareholders representing roughly 37% of ZymoGenetics's outstanding common stock have entered agreements to support the deal and tender their shares to the offer.

"The acquisition of ZymoGenetics brings us full ownership of a promising investigational biologic that strengthens our very diversified Hepatitis C portfolio. Building on our leadership in virology, we are developing a strong portfolio to help patients with Hepatitis C," said Lamberto Andreotti, Bristol-Myers CEO, in a statement. "In addition, ZymoGenetics brings proven capabilities with therapeutic proteins and revenue from a marketed specialty surgical biologic."

Bristol-Myers expects the deal to dilute earnings by 3 cents a share in fiscal 2010 and 7 cents a share in fiscal 2011.

On August 3, ZymoGenetics posted a loss of $3.8 million, or 4 cents a share, for the second quarter ended in June with revenue totaling $37.7 million, up from $22.6 million in the same period a year earlier.

In addition to pegylated-interferon lambda, ZymoGenetics's novel interferon in Phase IIb development for the treatment of Hepatitis C, the company's products also include Recothrom, a recombinant thrombin approved for use as a topical hemostat to control non-arterial bleeding, and a number of early clinical and pre-clinical oncology and immunoscience programs.

-- Written by Michael Baron in New York.



>To contact the writer of this article, click here: Michael Baron.

>To submit a news tip, send an email to: tips@thestreet.com

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,042.90 -28.32 -0.17%
S&P 500 1,972.29 -5.51 -0.28%
NASDAQ 4,493.39 -12.4620 -0.28%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs