Genzyme buying Cell Genesys for $350 mill

Genzyme General is set to acquire Cell Genesys for $350 million in astock-for-stock deal valued at approximately $350 million. The transaction is expected to close in the first quarter of 2000, and Genzyme said its protein and gene therapy programs will be significantly strengthened by the purchase.

Henri Termeer, chief executive of Genzyme Corp, said that the acquisition solidifies the firm's scientific and technology base "in a very powerful way that will dramatically expand the capabilities of the company and position us for substantial growth over the next decade." He claimed the group has enlarged its product pipeline over the past 18 months through internal research, collaborations, and acquisitions, and the purchase of Cell Genesys "will help us expand our intellectual property position around Gaucher and Fabry disease." Genzyme added that it will use Cell Genesys' facilities in Foster City, California, as a West Coast base, giving the firm its "first direct access to the strong biotechnology community there."