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Monday, July 02, 2007

Cargo Cult Promotions

I mentioned the unusual deal between Zymogenetics and Bayer.

ZymoGenetics Establishes Global Collaboration With Bayer HealthCare for Development and Commercialization of Recombinant Human Thrombin6/19/2007
ZymoGenetics to receive up to $198 million plus royalties, including up to $70 million in 2007
Bayer HealthCare acquires product rights in all markets outside the U.S..

Not a very good deal considering Zymogenetics reported net losses of 130 million in 2006, 78 million in 2005 and 88 million in 2004. I mentioned a possible Cargo Cult connection of creating the illusion of a company on the move. The executives thus position themselves for rewards.

SEATTLE, July 2 /PRNewswire-FirstCall/ -- ZymoGenetics, Inc. today announced that Douglas E. Williams, Ph.D. has been named President of the company. Bruce L.A. Carter, Ph.D. will continue as ZymoGenetics' Chief Executive Officer and Chairman of the Board. James A. Johnson has been promoted to Executive Vice President and will remain Chief Financial Officer and Treasurer. Darren R. Hamby has been promoted to Senior Vice President, Human Resources. All three promotions were made effective July 1, 2007.

Promoted into jobs that didn't exist yesterday? Pay increases? When will Zymogenetics turn a profit? Now that senior management is now more... um... successful, perhaps the company will follow in their footsteps.

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