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Biotechnology industries

Genzyme Acquires Bone Care International for $600 Million

Strategic Insights

— 1 min read

Genzyme Corp., a global biotech giant, has reached a deal to acquire Middleton-based Bone Care International in a deal valued at $600 million. The acquisition combines companies selling drugs that treat patients with chronic kidney disease, including those included in the National Kidney Foundation's treatment guidelines. Genzyme agreed to pay $33 for each share of Bone Care, giving shareholders a 38.4 percent premium over the company's Tuesday closing price of $23.83.

Key Takeaways:

  • The deal combines two companies selling drugs that treat patients with chronic kidney disease, including those included in the National Kidney Foundation's treatment guidelines.
  • Genzyme agreed to pay $33 for each share of Bone Care, providing shareholders with a 38.4 percent premium over the company's Tuesday closing price of $23.83.
  • The acquisition is expected to close in the third quarter, following approval by Bone Care's shareholders and federal regulatory antitrust clearance.
  • Bone Care has about 170 employees, with approximately half working in sales and marketing and the rest in Middleton, but the fate of these employees is uncertain, with Genzyme indicating it will evaluate how best to merge the two organizations.
  • Specific programs, such as Hectorol, an oral and intravenous medication for treating secondary hyperparathyroidism, will be retained and sold by Genzyme, which projects over $80 million in sales for the year.
  • Genzyme's chairman and CEO, Henri A. Termeer, stated the acquisition will solidify and strengthen its growing renal business, providing valuable commercial experience and accelerating its entry into the larger kidney disease market.

Statistics:

  • $600 million: The value of the acquisition deal.
  • $33: The price Genzyme agreed to pay for each share of Bone Care, providing a 38.4 percent premium over $23.83.
  • 170: The approximate number of Bone Care employees, with half working in sales and marketing and the rest in Middleton.
  • $80 million: The projected sales for Hectorol, a medication for treating secondary hyperparathyroidism, this year.
  • $400 million: The annual sales for Genzyme's Renagel drug, which helps limit the buildup of phosphorus levels in dialysis patients.
  • 7,000: The number of employees worldwide for Genzyme.

Sources:

  • "Genzyme Corp. to Acquire Bone Care International."
  • "Bone Care: Genzyme Acquisition Expected to Close in 3Q."

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