ZymoGenetics receives milestone payment

ZymoGenetics, Inc. (NASDAQ:ZGEN) announced the initiation of a Phase 2 clinical trial of PEG-Interferon lambda (IL-29) and ribavirin in treatment naive patients with chronic hepatitis C virus (HCV) infection. Hence the Seattle-based ZymoGenetics will receive a US$70 million milestone payment from its partner, Bristol Myers Squibb Co. (NYSE:BMY), that will help ZymoGenetics to start with their new trial called Emerge and will initially enroll 50 patients on a variety of doses. The clinical trial will expand to 500 patients who will be randomly assigned to get ZymoGenetics new drug IL-29 which is designed to have potent anti-viral activity without any side-effects or symptoms.

ZymoGenetics, Inc is focused on the discovery, development, manufacturing and commercialization of therapeutic proteins for the treatment of human diseases. The company focuses more on areas like hemostatis, inflammatory and autoimmune diseases, cancer and other viral infections. ZymoGenetics, PEG-Interferon lambda induces anti-viral activity against HCV through a unique receptor that activates the same signaling pathway as Interferon Alpha, but with more restricted distribution compared to Interferon Alpha. Early results from the Phase 1b trial showed that PEG-Interferon lambda as single agent reduced viral load without side effects typically seen with Interferon alpha.

On January 12, 2009, Bristol-Myers Squibb Company and ZymoGenetics announced a global collaboration for PEG-Interferon lambda to combat HCV infections. Chronic HCV infection is a leading cause of cirrhosis, liver failure and hepatocellular carcinoma worldwide. In the United States, it is estimated that HCV is associated with up to 20 thousand deaths annually, and is the main reason for liver transplantation. The second part of the study is designed to enroll approximately 500 patients where weekly subcutaneous doses of PEG-Interferon lambda will be administered for up to 48 weeks. The study will assess the safety and antiviral efficacy of PEG-Interferon lambda compared to PEGASYS.