Originally published Thursday, October 23, 2008 at 12:00 AM

ZymoGenetics gets $21 million to end patent suit

ZymoGenetics will receive $21 million to settle a patent infringement lawsuit against Bristol-Myers Squibb, the company said in a regulatory filing Thursday.

By Seattle Times staff

ZymoGenetics will receive $21 million to settle a patent infringement lawsuit against Bristol-Myers Squibb, the company said in a regulatory filing Thursday.

The Seattle-based biotech sued in August 2006 over the pharmaceutical giant's drug Orencia, claiming it infringed on ZymoGenetics' patents on Ig fusion proteins. As part of the settlement, Bristol-Myers received a nonexclusive, worldwide license to the those patents.

ZymoGenetics reported cash and short-term investments of $117 million as of June 30, down from $171 million six months earlier. Striving to strengthen its reserves and slow its cash burn rate, it raised $11 million in August by selling a parcel of land, and last month handed off the development of one of its key compounds to partner Merck Serono.

ZymoGenetics shares were down more than 5 percent in mid-day trading, dropping 26 cents to $4.77, while the Nasdaq Biotechnology Index was down 2.2 percent.

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