ZymoGenetics restructures atacicept partnership with Merck Serono

ZymoGenetics has restructured its partnership with Darmstadt, Germany-based Merck Serono on the ongoing development of the atacicept. The US drugmaker has exercised its contractual right to convert to a worldwide royalty license and will no longer be responsible for funding any of the development costs on a worldwide basis. Merck will now have exclusive global rights for the agent, including in North American, and will make milestone payments to ZymoGenetics, as agreed in the original deal signed in 2001, as well as paying royalties on worldwide net sales. "We believe that atacicept holds tremendous promise as a potential treatment for autoimmune diseases, with a broad, parallel path of development in lupus, multiple sclerosis and rheumatoid arthritis. Converting to a royalty position on atacicept allows us to avoid a major capital commitment, reduce expenses and preserve cash over the next several years, while securing the value of our atacicept asset," said Douglas Williams, president of ZymoGenetics. The companies also revised the terms of their research alliance.