Bristol-Myers Squibb buys ZymoGenetics for $855 million

8 September 2010

US drug major Bristol-Myers Squibb (NYSE:BMY) says it has signed an agreement to acquire ZymoGenetics (Nasdaq: ZGEN) for $9.75 per share in cash - a 77% premium to its prior day closing price of $5.51 - which will give it total rights to a hepatitis C drug they are jointly developing, as well as other products.

The deal values the Seattle-based biotechnology firm at some $885 million, or around $735 million net of cash acquired, has been unanimously approved by the boards of directors of both companies. ZymoGenetics' board intends to recommend that ZymoGenetics' shareholders tender their shares in the offer.

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