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ZymoGenetics' Biotech Disconnect

Executive Summary

It's logical to think that synthetic thrombin is safer than bovine- or plasma-derived equivalents. But ZymoGenetics is finding out that it's not an easy sell, especially to Wall Street.

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Novo-ZymoGenetics: The Next Roche-Genentech?

Novo Nordisk's decision to spin off ZymoGenetics in 2000 was 100% inspired by Roche's hands-off relationship with Genentech. The parent claims Zymo's R&D productivity has since increased; its recent ex-US deal with Bayer-Schering on recombinant thrombin proves that Zymo has certainly grown up and left home.

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The broad research, development and commercialization alliance inked in September between ZymoGenetics Inc. and Serono SA stands out not only for its size and scope--an unlimited number of proteins and up-front equity purchases and license fees totalling $81.25 million--but also because each partner is a biotech company, and the research chores will be shared from the outset.

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The US FDA has stood out as an agency that tends to draw broad bipartisan support amid a generally rancorous and divided Congress. A House hearing, however, may be a sign that those days are over.

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