Bristol-Myers Squibb Co. has agreed to acquire ZymoGenetics, Inc. for $735 million, adding biologics for hepatitis and other diseases to its pipeline. The acquisition is part of the company’s strategy to expand its virology franchise, as well as an effort to offset expected loss of market exclusivity in the next few years for top-selling drugs, namely Plavix.

Bristol-Myers Squibb chief executive officer Lamberto Andreotti said, “The acquisition gives the company full ownership of a promising investigational biologic that strengthens our very diversified hepatitis C portfolio." The two companies have collaborated on development of pegylated-interferon lambda since January 2009. The product is now in Phase II trials.

ZymoGenetics' other products include Recothrom, a drug for use in surgery to prevent blood clotting; IL-21 protein in Phase II development as a potential immunotherapy treatment for metastatic melanoma; and six biologic drug candidates for atopic dermatitis. ZymoGenetics also is in six partnered programs with Merck KGaA affiliate EMD Serono Inc. and Novo Nordisk A/S.