Genzyme Corporation today announced that it has completed the sale of its diagnostic products business to Sekisui Chemical Co., Ltd. for $265 million in cash.
Sekisui purchased substantially all of the assets of the business, including diagnostic product lines and technologies. Genzyme's approximately 575 employees in the business were offered similar positions with Sekisui, which plans to maintain operations in each of the business's current locations. In connection with the sale, Sekisui also entered into a supply agreement to provide Genzyme with certain enzymes needed for the production of Cerezyme® (imiglucerase for injection).
Genzyme also announced today that it has entered into a purchase agreement under which an affiliate of International Chemical Investors Group (ICIG) will acquire Genzyme's pharmaceutical intermediates business.
Under the terms of the agreement, ICIG will purchase substantially all of the pharmaceutical intermediates business, excluding the drug delivery technologies portion of the business. ICIG has agreed to offer employment to the unit's approximately 120 employees upon closing, and plans to maintain operations at its primary location, a manufacturing facility in Liestal, Switzerland. The acquired pharmaceutical intermediates business will be renamed Corden Pharma Switzerland LLC and will operate as part of ICIG's pharmaceutical business within the Corden Pharma platform.
The companies' goal is to close the transaction during the first quarter of 2011. Financial terms are not material to Genzyme and were not disclosed.
As part of the agreement, ICIG will enter into a five-year supply contract to provide Genzyme with materials needed for the production of eliglustat tartrate, an investigational treatment for Gaucher disease Type 1 that is currently in phase 3 clinical trials. ICIG will also supply materials needed for the manufacture of other treatments in earlier stages of development, including neo-GAA, currently in preclinical development as a potential next-generation Pompe disease therapy.
Genzyme Pharmaceuticals develops and manufactures chemically synthesized pharmaceutical materials and technologies for the global pharmaceutical industry and focuses on lipids, peptides, carbohydrates, oligonucleotides and custom small molecules.
International Chemical Investors Group is a privately owned industrial holding company focusing on mid-sized chemicals and pharmaceutical businesses. Since inception in 2004, ICIG has acquired 15 businesses, all of which have origins in major global chemical or pharmaceutical corporations and are independently managed. ICIG companies currently employ more than 3,000 people and operate 15 manufacturing facilities in Europe and the United States. Corden Pharma group companies offer contract development and contract manufacturing for advanced pharmaceutical intermediates, APIs and drug product formulations with more than 1,500 individuals supporting their customers with specialized technologies in all international markets.
Genzyme was advised on this transaction by Young & Partners, a chemicals and life sciences investment banking firm headquartered in New York.
The terms achieved with both Sekisui and ICIG meet the three foundational goals Genzyme established for divestitures: (1) to recognize the value of employees with appropriate treatment as part of the transaction, (2) to create a future for the businesses in which customers continue to be served well, and (3) to maximize value for Genzyme shareholders.
These divestitures are part of Genzyme's ongoing effort to sharpen its focus on its key businesses. Genzyme also completed the sale of its genetic testing business in December.