Bristol-Myers Squibb, ZymoGenetics team to develop hepatitis C drug

SEATTLE A large drug maker and a Seattle-based biotech company announced Monday that they will collaborate to develop a treatment for hepatitis C.

Bristol-Myers Squibb and ZymoGenetics will collaborate on the development of PEG-interferon lambda, a type-3 interferon in phase 1b clinical development.

Under the terms of the agreement, Bristol will pay ZymoGenetics $85 million upfront for the development and commercialization rights to the drug and a license fee of $20 million, as well as up to $1 billion in milestone payments. Bristol will be responsible for commercialization. Both companies will develop the drug in the United States and Europe, sharing development costs.

“We look forward to a productive partnership focused on bringing PEG-interferon lambda to hepatitis C patients as rapidly as possible,” ZymoGenetics CEO Douglas Williams said in a statement.