ZymoGenetics to transfer atacicept development to Merck Serono

SEATTLE ZymoGenetics plans to transfer the development and commercialization of one of its drugs to Merck Serono to save money, the Seattle-based biotech announced Wednesday.

The drug, atacicept, is designed to treat autoimmune diseases and is in phase II trials. ZymoGenetics plans to continue conducting trials of the drug for lupus nephritis, though Merck Serono will refund it.

The companies are partners, though ZymoGenetics will relinquish half of the profits on atacicept while receiving royalties on global sales and milestone payments.