ZymoGenetics, Inc. (NASDAQ:ZGEN)

bull

ASCO

f

Will be bought or be a one hit wonder.

Big Pharma (BMY) made a deal
to buy 50% rights for the new drug expected to
be ready for FDA approval early next year.

They will pay ZGEN one billion dollars

$4.43 heah to $10.00 or more

Someone is running out of cash...

This company is trading near it's yearly low as well as a major executive (CEO or director) recently made a big purchase of stocks.

As of close of business on 2/20/08, this was a 5-star Morningstar stock trading at less than half of its Morningstar fair value.

Nice pullback on selling the positive news of FDA approval of their recombinant Thrombin product gives a good entry point. Modest safety advantages over the animal and human derived competitors in this space should give them good sales growth.

nice approval, will be first in class, feel good about the cancer drug that will emerge

New type of agent for a tough disease, tolerable and with a reasonable response rate

Accelerated Revenue and Earnings Growth

2007 EPS -$2.00

2008 EPS -$0.75

This will be a profitable company by the end of 2009 on the back of one product with several potential blockbusters in the works.

If you're worried about the FDA delay... don't be, it's just a product of our government not being able to act quickly enough to enable proper funding... If the FDA wasn't going to approve rThrombin it would have happened by now rather than delaying until January. This one is a quick and easy 50% gain.

This company is getting ready to launch its first product within the next few months. Outlook for the next two years is positive, and ZGEN should be turning a profit within the next six months if the launch is a success. The stock has been beaten up lately... buy now at a discount.

Undervalued for what they have in the pipeline.

Heard they have several new drugs in the works. Also think there is potential for buy out or merge with another pharma, perhaps Bayer or Amgen.

Likely FDA approval of thrombin product in 10/07, stock currently trading near 3 year lows

ZymoGenetics is engaged in the discovery, development, manufacture and commercialization of therapeutic proteins for the treatment of diseases in the areas of hemostasis, inflammatory and autoimmune diseases, cancer and viral infections. Its pipeline of products includes a replacement for plasma-derived protein products and several novel proteins, which it is developing on its own or in collaboration with partners like Novo Nordisk and Merck. The company earns royalty from the sale of Novilin (insulin), Regranex, GlucaGen and Cleactor.

The company's most advanced internal product candidate, rhThrombin represents a major improvement over the current market-leading thrombin from King Pharmaceuticals, eliminating the risks of antibody formation or infectious disease exposure. It remains on track for an anticipated US FDA decision sometime in the later October 2007. Among the more important recently initiated trials are: Phase II of Atacicept for Rheumatoid Arthritis (RA) and multiple melanoma (MM), Phase II of IL-21 for metastatic melanoma, Non-Hodgkin’s lymphoma (NHL) and renal cancer, and Phase I of IL-29 for Hepatitis C. Patents linked to all these products are not expected to expire prior to 2017 in the US.

For the fiscal year 2006, ZymoGenetics' revenues decreased 41% to $25.4 million reflecting a comprehensive decrease in royalty income, option fees income and license fees and milestone payments. Option fees income were higher in 2005 due to deferred revenue recognition. License fees were also up in 2005 due to full recognition of fees received from Novo Nordisk and Eli Lilly. However, cash and equivalents on hand at year-end of $258 million still appear adequate to fund clinical development until rhThrombin revenues ramp up.

The company images as a sound investment proposition looking at the near term prospects of US FDA approval for rhThrombin generating impressive royalty and licensing revenues, while additional milestone payments to be received in relation to Phase I and II product line.

Looks like the Thrombin spray should be available soon.

Lot of debt but I think it should start coming around now.