Continuing its string of pearls philosophy, Bristol-Myers Squibb has agreed to pay in cash for ZymoGenetics, which is developing a hepatitis C compound that was the focus of a collaboration between the two companies beginning early last year.

The move is a bid by the big drugmaker, of course, to strengthen its pipeline for hepatitis C, which is forecast to a grow into a multi-billion dollar market. At the moment, the focus is largely on forthcoming treatments from Vertex Pharmaceuticals and Johnson & Johnson, which are in a race with Merck to sell the most effective new protease inhibitor to treat the affliction (see this and this).

By acquiring ZymoGenetics, Bristol-Myers gets pegylated-interferon lambda, a novel interferon in Phase IIb, along with several other early-stage treatments (read the statement for details). You can also look at HCVDrugs to compare the various hepatitis C drugs under development by different drug makers (see the list).

Bristol is relying on its string of pearls strategy, which involves a combination of outright acquisitions and licensing deals, to eventually grow its way out of a dearth of needed meds. The idea is to selectively pursue companies and compounds that represent opporunities in specific therapeutic areas, as opposed to, say, the Pfizer tactic of gobbling up equally drugmakers. A notable deal was the $2.4 billion purchase of Medarex last year. Not every deal has worked out, though. Bristol paid $17 million last June to end a collaboration with Exelixis (look here).

pic thx to o5com on flickr