Genzyme Corporation to Acquire ILEX Oncology, Inc.
Takes Important Step to Establish Oncology Franchise
Genzyme Corporation and ILEX oncology, Inc announced a merger agreement under which ILEX shareholders will receive shares of Genzyme common stock valued at $26.00 per share, or approximately $1 billion in equity value. Excluding amortization, the transaction is expected to be dilutive to Genzyme's near-term earnings and accretive in 2006.
With this transaction, Genzyme takes a significant step toward fulfilling its goal of building an oncology business. ILEX offers a strong franchise with a growing marketed product, a promising pipeline with two late-stage products and a first-class clinical development organization. The pipeline significantly augments Genzyme's long-standing program in oncology, which includes a research and early development portfolio with particular strengths in antibodies, small molecules and cell-based therapeutics. The merger also capitalizes on Genzyme's substantial expertise in biologics and targeted therapeutics, and its expanding oncology testing business. Genzyme is one of the world's top five biotechnology companies, with ten major marketed products and a global regulatory, manufacturing and commercial infrastructure. Cancer, unquestionably, represents a significant unmet medical need that includes well-defined groups of addressable patient populations. This market is one of great opportunity for Genzyme, which is dedicated to making a major positive impact on the lives of patients with serious diseases.
"This transaction is a very good strategic fit for Genzyme that provides us with a solid franchise in the important field of oncology," stated Henri A. Termeer, chairman and chief executive officer, Genzyme Corporation. "Through this merger, we gain an experienced team that has brought a cancer therapy from development to market. The combined strength of the ILEX program and Genzyme's oncology pipeline expertise and infrastructure will provide the foundation for a sustainable and competitive commercial oncology business."
"We believe this transaction brings significant value to ILEX shareholders and recognizes the high quality oncology franchise that we at ILEX have built," said Jeffrey Buchalter, president and chief executive officer, ILEX Oncology, Inc. "Genzyme is a top-tier biotech company with the resources and commitment to take us to the next level as we continue to expand our markets and, ultimately, commercialize our own products."
Genzyme plans to maintain ILEX operations in San Antonio, acknowledging the impressive work currently underway by the ILEX team.
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