Genzyme acquires Germany's Verigen

US biotechnology major Genzyme has acquired Verigen AG, a private company based in Germany with a proprietary cell therapy product for cartilage repair currently sold in Europe and Australia. This product, Matrix-induced Autologous Chondrocyte Implantation, will both expand Genzyme's orthopedic offerings in these markets and provide a strong second-generation product to develop for the USA. Carticel (autologous cultured chondrocytes), Genzyme's first-generation product, has been used in more than 10,000 patients since it was introduced in 1995.

"This strategic acquisition will help advance our global orthopedic franchise by providing a strong second-generation cartilage repair product with a solid foundation in Europe and Australia," said Ann Merrifield, president of Genzyme Biosurgery. "We look forward to building on Verigen's established presence with orthopedic surgeons in Europe and Australia...and to launching US clinical trials for MACI by early 2006," she added.

Genzyme has acquired Verigen for $10.0 million in initial payments, and a potential further $40.0 million over the next six years based upon the achievement of development and commercial milestones. These include approval of a Biologic License Application in the USA, US marketing approval and royalties on sales. To date, Genzyme says it has acquired approximately 96.0% of Verigen's shares, and anticipates buying the remaining stake in the first half of the year and that the transaction is not material to the US firm from a financial standpoint.