Genzyme Corp set to acquire GelTex Pharmaceuticals for $1 billion

Genzyme General has entered into a definitive agreement to acquireGelTex Pharmaceuticals in a deal valued at around $1 billion. Under the terms of the deal, GelTex shareholders will receive 0.7272 of a share of Genzyme General common stock or $47.50, to maintain the cash portion of the agreement at 50%, or around $500 million. This represents a 27% premium over GelTex's closing share price on September 8.

With this acquisition, Genzyme will inherit two marketed products: Renagel (sevelamer HCl), which is used in the treatment of patients with end-stage renal disease undergoing dialysis, and the lipid-lowerer WelChol (colesevelam HCl). The company is particularly enthusiastic about the prospects for Renagel and believes that the worldwide market opportunity for the product "is far greater than originally anticipated."

Genzyme explains its confidence in the product by saying that Renagel's market share is growing, driven by factors such as mounting evidence about the role of calcium in cardiovascular disease among dialysis patients and a substantial rise in the dialysis patient population.