The locally-based pharmaceutical company had purchased property near its Seattle headquarters earlier this year with the goal of building a three-story facility in which it would produce therapeutic proteins for early phase clinical trials.

"We believe that in the environment today, financial strength becomes ever more important for biotechnology companies, giving increased flexibility to operate," says Bruce L.A. Carter, president and chief executive officer of ZymoGenetics. "In addition to the considerable financial benefits that we will realize, this decision will allow our staff to focus on the advancement of our lead products, while eliminating the time commitments that would have been required to bring the plant on line."

The company says the land will be banked for future expansion. The construction delay, initially slated to be up and running by 2004, also is not expected to affect its product advancement and distribution.