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Citi Upgrades ZymoGenetics (ZGEN) to Hold

May 7, 2008 7:56 AM EDT
ZGEN Hot Sheet
Rating Summary:
    1 Buy, 2 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Citi upgrades ZymoGenetics (Nasdaq: ZGEN) from Sell to Hold. Price target $9.

Citi analyst says, "While we view ZymoGenetics' rhThrombin as best-in class, we believe the Street may be overestimating the market opportunity for rhThrombin, and therefore, we believe the sales of the product are likely to be below Street expectation upon launch in early 2008. We expect the thrombin market to become competitive. JNJ's Ethicon division has one of the strongest presence in the operating room market. While we believe ZGEN is overvalued based on rhThrombin and its target market size, in the short term we believe ZGEN will remain in a trading range given few near-term catalysts."

ZymoGenetics, Inc. is focused on the discovery, development, manufacture and commercialization of therapeutic proteins for the treatment of human diseases.

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