Genzyme, Sanofi Announce $20.1B Buyout
After months of negotiations, Cambridge-based Genzyme, which has significant operations in Central Massachusetts, agreed to be purchased by French pharmaceutical company Sanofi-Aventis for $20.1 billion.
Sanofi originally offered to buy the biotech company for $18.5 billion, or about $69 per share, in the summer of 2010. But Genzyme officials rejected the initial offer as too low.
The boards of both companies unanimously approved the latest $74-per-share deal. Genzyme's stock on Wednesday was trading around $75 per share.
In addition to the $20.1 billion, the agreement also includes numerous milestone payments that Sanofi may make to Genzyme shareholders based on future sales and production figures. Those are specifically connected to Genzyme's top two drugs, Cerazyme and Fabrazyme, and for one of Genzyme's newest drugs, Lemtrada, which treats multiple sclerosis.
Henri Termeer will resign as Genzyme's chairman, president and CEO once the transaction closes, which is expected to happen sometime in the second quarter.
Sanofi, in a press release, said it will maintain a "sizeable presence in the greater Boston area."
Genzyme also released its fourth-quarter and year-end financial data Wednesday, which showed that the company made a $422-million profit on $4.05 billion in revenues in 2010.
For the fourth quarter, profits increased from $23.2 million in 2009 to $471.9 million last year, while revenues increased 23 percent to $1.15 billion.
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