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ZymoGenetics Begins Clinical Trial for PEG-Interferon Lambda As Potential Treatment for Viral Infection

Posted on: Tuesday, 30 January 2007, 06:00 CST

SEATTLE, Jan. 30 /PRNewswire-FirstCall/ -- ZymoGenetics, Inc. today announced that the company has initiated a Phase 1 safety and pharmacokinetic study of PEG-Interferon lambda (IL-29) in healthy volunteers. The Phase 1 study is part of a clinical development program designed to evaluate PEG-Interferon lambda as a potential treatment for patients with hepatitis C and other viral diseases.

"This clinical trial highlights the breadth of our pipeline and reflects our intense commitment to finding new treatments for patients. ZymoGenetics' development programs now encompass hemostasis, cancer, autoimmune and viral diseases," said Bruce L.A. Carter, Ph.D., President and CEO of ZymoGenetics. "We believe PEG-Interferon lambda could serve as an effective alternative in providing therapy for viral infections such as hepatitis C, with the potential for fewer side effects than the current standard of care."

The native human protein Interferon lambda is generated by the immune system in response to viral infection. It mediates anti-viral activity through a receptor that is distinct from that used by Interferon alpha and is generally present on fewer cell types within the tissues of the body. Receptors for Interferon lambda are present on several important sites of viral infection, most notably cells of the lung and liver. ZymoGenetics' product candidate, recombinant PEG-Interferon lambda, has shown in vitro anti-viral activity against several viruses, including hepatitis C.

About Hepatitis C

Chronic infection with hepatitis C virus (HCV) is a leading cause of cirrhosis, liver failure, and hepatocellular carcinoma worldwide. In the United States, it is estimated that HCV is associated with up to 20,000 deaths per year, and is the main indication for liver transplantation. An estimated 4.1 million people in the United States have been exposed to HCV, and approximately 3.2 million have chronic HCV infection. Without effective intervention, the National Institutes of Health project that the number of deaths from chronic HCV infection may triple in the next 10-20 years.

Current Standard of Care for Hepatitis C

The current standard of care for chronic HCV infection involves treatment with Interferon alpha and ribavirin. This form of HCV therapy has been associated with a number of significant side effects including flu-like symptoms, anorexia, depression, hemolytic anemia and myelosuppression. This side-effect profile often necessitates additional medications to manage the side effects, and can lead to early discontinuation of treatment and poor adherence to prescribed therapy, leading to worsened treatment outcomes. Currently, the response rates for the most common form of HCV in the United States to standard treatment are only 50%. Therefore, there remains a need for better tolerated and more effective therapy for HCV infection. The development of PEG-Interferon lambda is intended to provide such an alternative to PEG-Interferon alpha.

About ZymoGenetics

ZymoGenetics creates novel protein drugs with the potential to significantly help patients fight their diseases. The Company is developing a diverse pipeline of potential proprietary product candidates that are moving into and through clinical development. These candidates span a wide array of clinical opportunities that include bleeding, autoimmune and viral diseases and cancer. ZymoGenetics intends to commercialize these product candidates through internal development, collaborations with partners, and out-licensing of patents from its extensive patent portfolio. For further information, visit http://www.zymogenetics.com/ .

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on the current intent and expectations of the management of ZymoGenetics. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. ZymoGenetics' actual results and the timing and outcome of events may differ materially from those expressed in or implied by the forward-looking statements because of risks associated with our unproven discovery strategy, preclinical and clinical development, regulatory oversight, intellectual property claims and litigation and other risks detailed in the company's public filings with the Securities and Exchange Commission, including the company's Annual Report on Form 10-K for the year ended December 31, 2005. Except as required by law, ZymoGenetics undertakes no obligation to update any forward-looking or other statements in this press release, whether as a result of new information, future events or otherwise.

Contact Investor Relations John Calhoun, MD, MBA Director, Corporate Communications & Investor Relations (206) 442-6744 Media Relations Susan W. Specht, MBA Associate Director, Corporate Communications (206) 442-6592

ZymoGenetics, Inc.

CONTACT: investors, John Calhoun, MD, MBA, Director, CorporateCommunications & Investor Relations, +1-206-442-6744, or media,Susan W. Specht, MBA, Associate Director, Corporate Communications,+1-206-442-6592, both of ZymoGenetics

Web site: http://www.zymogenetics.com/

Source: PRNewswire-FirstCall

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