Bristol-Myers Squibb Co. says it will acquire biotechnology company ZymoGenetics Inc. for $885 million, or $9.75 per share.
The New York drugmaker says its bid is worth $735 million excluding ZymoGenetics' cash on hand. Shares of ZymoGenetics closed at $5.51 Tuesday, making Bristol-Myers' offer a premium of 77 percent. Both companies have approved the deal and the board of ZymoGenetics is recommending that shareholders support the bid.
ZymoGenetics is based in Seattle and makes Recothrom, a drug used to reduce bleeding during surgeries. It is also developing a potential hepatitis C drug and experimental treatments for skin cancer and atopic dermatitis.
The deal is expected to reduce Bristol-Myers Squibb's profit in 2010 and 2011.
Copyright 2010 AP News
