Genzyme Completes Sale of Genetic Testing Business to LabCorp
December 01 2010 - 8:00AM
Business Wire
Genzyme Corporation (Nasdaq: GENZ) today announced that it has
completed the sale of Genzyme Genetics to Laboratory Corporation of
America Holdings (NYSE: LH) for $925 million in cash.
Under the final terms of the agreement, LabCorp purchased
substantially all of the assets of the Genzyme Genetics business,
including testing services, technology, intellectual property
rights, and the rights to continue operations at the unit’s nine
genetic testing laboratories. All employees of Genzyme Genetics
were offered similar positions at LabCorp.
This sale to LabCorp represents the successful completion of the
first of three planned divestitures previously announced by
Genzyme. Earlier this month, the company announced that it has
entered into an asset purchase agreement under which Sekisui
Chemical Co., Ltd. will acquire Genzyme’s Diagnostic products
business for $265 million in cash. The company also plans to divest
its Pharmaceuticals business. Proceeds from these three
transactions may be used to finance the remaining half of the
company’s planned $2 billion stock repurchase.
About Genzyme
One of the world's leading biotechnology companies, Genzyme is
dedicated to making a major positive impact on the lives of people
with serious diseases. Since 1981, the company has grown from a
small start-up to a diversified enterprise with approximately
10,000 employees in locations spanning the globe and 2009 revenues
of $4.5 billion. In 2010, Genzyme was named to the Fortune 500.
With many established products and services helping patients in
100 countries, Genzyme is a leader in the effort to develop and
apply the most advanced technologies in the life sciences. The
company's products and services are focused on rare inherited
disorders, kidney disease, orthopaedics, cancer, transplant, and
immune disease. Genzyme's commitment to innovation continues today
with a substantial development program focused on these fields, as
well as cardiovascular disease, neurodegenerative diseases, and
other areas of unmet medical need.
Genzyme’s press releases and other company information are
available at www.genzyme.com and by calling Genzyme’s investor
information line at 1-800-905-4369 within the United States or
1-678-999-4572 outside the United States.
Important Information
Genzyme has filed with the Securities and Exchange Commission a
Solicitation/Recommendation Statement on Schedule 14D-9 relating to
the tender offer by Sanofi-Aventis. Genzyme shareholders are
advised to read the company's Solicitation/Recommendation Statement
on Schedule 14D-9 because it contains important information.
Shareholders may obtain a free copy of the
Solicitation/Recommendation Statement on Schedule 14D-9, as well as
any other documents filed by Genzyme in connection with the tender
offer, free of charge at the SEC's website at http://www.sec.gov.
In addition, investors can obtain free copies of these documents
from Genzyme by directing a request to Genzyme at 500 Kendall
Street, Cambridge, MA 02142, Attention: Shareholder Relations
Department, or by calling 617-252-7500 and asking for the
Shareholder Relations Department.
Safe-Harbor
This press release contains forward-looking statements,
including the statements regarding: the successful completion of
the sale of Genzyme’s Diagnostic products business, the planned
sale of Genzyme’s Pharmaceuticals business, and Genzyme’s plans for
the use of the proceeds from one or more of the divestitures of its
Genetics, Diagnostic products and Pharmaceuticals businesses. These
statements are subject to risks and uncertainties that could cause
actual results to differ materially from those projected in these
forward-looking statements. These risks and uncertainties include
the failure of Genzyme to complete the sale of the Diagnostics
products business; the failure of Genzyme to complete the sale of
its Pharmaceuticals business; the determination by Genzyme not to
proceed with its stock repurchase program as currently
contemplated; the determination by Genzyme not to use all or a
portion of the proceeds from the divestitures in connection with
the stock repurchase program; and the risks and uncertainties
described in Genzyme's SEC reports filed under the Securities
Exchange Act of 1934, including the factors discussed under the
caption "Risk Factors" in Genzyme's Quarterly Report on Form 10-Q
for the period ended September 30, 2010. We caution investors not
to place undue reliance on the forward-looking statements contained
in this press release. These statements speak only as of the date
of this press release, and we undertake no obligation to update or
revise these statements.
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