Genzyme Updates Cerezyme Supply; Responds to Sanofi Bid

Sep 03, 2010

Genzyme Corporation (Cambridge, MA) has reported that production of its Gaucher treatment, Cerezyme is now up to historical averages and they began increasing shipments in August.

Manufacturing problems at the Allston Landing plant had caused shortages of the drug. The company expects that patients will be able to begin increasing their doses in September and return to normal dosing in the fourth quarter.

Genzyme has also fielded an unsolicited bid for purchase from Sanofi Aventis for $69/share. On August 30, in a response letter to Sanofi, Henri Termeer, CEO, rejected the August 29th bid, saying that he did not believe it was the right time to sell "because [Sanofi's] opportunistic takeover proposal does not begin to recognize the significant progress underway to rectify our manufacturing challenges or the potential for our new-product pipeline." The letter also states that the Sanofi bid "dramatically undervalues [the] company."