Item 7.01. Regulation FD Disclosure.

On June 23, 2009, ZymoGenetics, Inc. (the "Company") earned a milestone payment in the amount of $25 million from Bristol-Myers Squibb Company ("BMS") related to the parties' progress toward Phase 2 testing under the previously announced global collaboration with BMS for PEG-Interferon lambda. ZymoGenetics expects to receive the payment within 30 days after the milestone event. This brings the total milestone payments received or receivable from BMS in 2009 to date to $130 million. An additional $70 million milestone payment will be due within 30 days after initiation of Phase 2 patient treatment.

Information in this Report on Form 8-K (the "Report") is furnished pursuant to Item 7.01 and shall not be deemed to be "filed" for the purpose of Section 18 of the Securities and Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as expressly set forth by specific reference in such filing. This Report will not be deemed an admission as to the materiality of any information in the Report that is being disclosed pursuant to Regulation FD.

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