Bayer returns Recothrom rights to ZymoGenetics

AP News
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Posted: Dec 21, 2009 5:26 PM

ZymoGenetics Inc. said Monday it regained most of the marketing rights for its only marketed product, Recothrom, from partner Bayer Schering Pharma.

Starting Jan. 1, ZymoGenetics will have full marketing rights in the U.S. and all other countries except Canada. It will pay decreasing commissions to Bayer over the next two years and will not have to pay bonuses on U.S. sales, while Bayer will pay royalties on sales in Canada but won't have to make milestone payments to ZymoGenetics.

Recothrom is used to control bleeding during surgeries. On Tuesday, ZymoGenetics said additional clinical testing will probably be needed before Recothrom is approved in Europe. Bayer pulled its application with European regulators because it believed more studies would be required.

Bayer will receive normal commissions on sales for the rest of 2009. Bayer could have received up to $25 million in commissions through the end of 2011, but those payments are now capped at $12 million. ZymoGenetics will not have to pay bonuses that could have reached $20 million.

ZymoGenetics could have received as much as $16 million in milestone payments if Recothrom was approved in other countries. The Seattle-based company will be responsible for handling regulatory applications in all countries except Canada.

Bayer Schering, which is based in Germany, gained rights to Recothrom outside the U.S. in 2007. ZymoGenetics shares rose 5 cents to close at $6.06.