Genzyme Terminates Acquisition of Cell Genesys Citing Increased Value of Abgenix Equity Ownership

Genzyme General has terminated its definitive agreement to acquire Cell Genesys, a decision that follows the latter's board of directors withdrawing its recommendation for the proposed acquisition. The Termination fee for Cell Genesys is $15 million. This development stems from the significant increase in the value of Cell Genesys' equity ownership in Abgenix Inc., with an increase of approximately $230 million since the agreement was announced in October.

Key Takeaways:

• Genzyme General terminated its acquisition of Cell Genesys, citing the increased value of Abgenix equity ownership as the primary reason.
• The Cell Genesys board of directors withdrew its recommendation for the acquisition.
• The Termination fee for Cell Genesys is $15 million.
• Cell Genesys owns approximately 19 percent of Abgenix Inc.
• The increase in Abgenix equity value is approximately $230 million since the agreement was announced in October.
• Genzyme General has a pipeline of therapeutic products in development focused on the treatment of rare genetic diseases.
• Cell Genesys has a common stock reflecting its value and tracking its economic performance.

Statistics:

• Increase in Abgenix equity value since the agreement was announced: $230 million
• Cell Genesys' equity ownership in Abgenix Inc.: 19 percent
• Termination fee for Cell Genesys: $15 million
• Approximate value of the acquisition: $350 million
• Number of therapeutic products on the market by Genzyme General: 3
• Number of therapeutic products in development by Genzyme General: several ( exact number not specified)

Sources:

• PRNewswire, December 22, Genzyme General Terminates Definitive Agreement to Acquire Cell Genesys ( migraine link)