Genzyme $137.5 mill buy of Novazyme

Genzyme Corp has signed a definitive agreement to acquire NovazymePharmaceuticals in a stock deal valued at $137.5 million. The latter's shareholders are also eligible to receive two subsequent payments of $87.5 milion, again payable in stock, contingent on receiving US marketing approval for the first two products employing certain of Novazyme's technologies. The transaction is expected to close in the third quarter, and Genzyme said the acquisition will lower its earnings in 2001 by about $0.03 per share to $1.12-$1.17.

Novazyme has developed a series of novel protein engineering technologies, and Genzyme says that these have been shown in preclinical studies to greatly enhance the targeting and uptake of replacement enzymes. They may also have application for developing advanced monoclonal antibodies and gene therapies, the companies noted.

Good strategic fit