Bristol-Myers tenders for ZymoGenetics

Bristol-Myers Squibb Co., with research operations in Wallingford, said Friday it started a tender offer as part of its agreement to buy biotechnology company ZymoGenetics Inc. for $885 million, The Associated Press reports.

The New York drugmaker's $9.75-per-share bid represents a 77 percent premium to Zymogenetics' closing price of $5.51 prior to the initial announcement, which came on Tuesday.

Bristol-Myers had said the deal is worth $735 million excluding ZymoGenetics' cash on hand. Both companies have approved the deal and the board of ZymoGenetics is recommending that shareholders support the bid.

Seattle-based ZymoGenetics makes Recothrom, a drug used to reduce bleeding during surgeries.

The tender offer expires on Oct. 7.