Genzyme to Acquire Bone Care for $600 Million

In a transaction that will diversify its renal business, Genzyme Corp. (Cambridge, MA, USA) has agreed to acquire Bone Care International (Madison, WI, USA) for about U.S.$600 million, net of Bone Care's cash of $119 million.

Bone Care's Hectorol (doxercalciferol), a line of vitamin D2 pro-hormone products, is used to treat secondary hyperparathyroidism in patients on dialysis, where it can be used in tandem with Genzyme's Renagel (sevelamer hydrochloride) and other phosphate binders. Hectorol is available in intravenous form for patients on hemodialysis and in oral forms for patients with earlier stage chronic kidney disease. It is the first and only vitamin D2 analog approved by the U.S. Food and Drug Administration (FDA) to treat the continuum of chronic kidney disease. Sales of Hectorol reached $59 million for the first nine months ended March 31, 2005. Based on third-quarter sales, Bone Care estimates revenues in the range of $82-83 million for the fiscal year ending June 30, 2005.

Genzyme intends to integrate Bone Care into its own renal operations in the United States. "The addition of the Bone Care organization and the Hectorol brand will solidify and strengthen our growing renal business, while further broadening our overall product portfolio,” noted Henri A. Termeer, chairman and CEO of Genzyme. "This important therapy for patients with earlier stages of chronic kidney disease will provide Genzyme with valuable commercial experience and speed our entry into this much larger market.”

"Genzyme has recognized the potential of our strong growth platform and the value our employees bring to patients, clinicians, and shareholders” observed Paul Berns, president and CEO of Bone Care. "We believe that this merger is a tremendous opportunity to optimize Bone Care's global business potential.”





Related Links:
Genzyme
Bone Care