Medtech Insight is part of Pharma Intelligence UK Limited

This site is operated by Pharma Intelligence UK Limited, a company registered in England and Wales with company number 13787459 whose registered office is 5 Howick Place, London SW1P 1WG. The Pharma Intelligence group is owned by Caerus Topco S.à r.l. and all copyright resides with the group.

This copy is for your personal, non-commercial use. For high-quality copies or electronic reprints for distribution to colleagues or customers, please call +44 (0) 20 3377 3183

Printed By


Genzyme's Genetic Testing Business Attracts $925 Million From LabCorp

This article was originally published in The Gray Sheet

Executive Summary

Genzyme's marginally profitable genetic testing service business is being sold to Laboratory Corporation of America for $925 million, the firms announced Sept. 13

You may also be interested in...

News In Brief

Genzyme unloads Dx unit

News In Brief

Genzyme unloads Dx unit

Genzyme rejects Sanofi's hostile bid

Drug maker Sanofi-Aventis launches hostile bid for diversified diagnostic/biotech firm Genzyme Oct. 4 with a tender offer of $69-per-share, or roughly $18.5 billion, only to be rejected again by Genzyme on Oct. 7. Sanofi's offer price, which Genzyme says does not represent fair value, has not increased since it was first made to Genzyme management on July 29. But with no white knight bidder emerging to force Sanofi's hand and Genzyme's management refusing to negotiate, Sanofi said it had little incentive to up the ante and no recourse other than to take the offer directly to Genzyme shareholders. In a filing with the Securities & Exchange Commission Oct. 7, in which Genzyme's board advises shareholders to reject Sanofi's offer, Genzyme said that Sanofi CEO Christopher Viehbacher had suggested a price range of $69- to $80-per share in Sept. 20 discussions with Genzyme CEO Henri Termeer. The hostile offer from Sanofi is largely viewed as a means to bring Genzyme to the negotiating table in what is likely to be a prolonged takeover. Genzyme's stock has been trading at around $71-per-share since Sanofi's offer was made public Aug. 29, suggesting shareholders expect a richer price (1"The Gray Sheet" Sept. 6, 2010). However, Sanofi's current offer represents a 38% premium over Genzyme's share price of $49.86 on July 1 and a 31% premium over the one-month historical average share price through July 22, one day before acquisition rumors began circulating. "Sanofi's new overture probably means more active negotiations are inevitable," Bernstein Research analyst Geoff Porges said in a recent report. Genzyme recently agreed to sell its genetic testing business to LabCorp for $925 million (2"The Gray Sheet" Sept. 20, 2010)

Related Content


Latest Headlines
See All



Ask The Analyst

Ask the Analyst is free for subscribers.  Submit your question and one of our analysts will be in touch.

Your question has been successfully sent to the email address below and we will get back as soon as possible. my@email.address.

All fields are required.

Please make sure all fields are completed.

Please make sure you have filled out all fields

Please make sure you have filled out all fields

Please enter a valid e-mail address

Please enter a valid Phone Number

Ask your question to our analysts