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news.Genzyme Corporation has signed a definitive merger agreement to acquire specialty pharmaceutical company Bone Care International in an all cash transaction valued at approximately $600 million.
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The acquisition of Bone Care will bring Genzyme a complementary line of products and a profitable commercial organization that will strengthen and diversify its renal business.
Bone Care’s Hectorol (doxercalciferol), a line of vitamin D2 pro-hormone products, is used to treat secondary hyperparathyroidism in patients on dialysis, where it can be used in tandem with Genzyme’s Renagel (sevelamer hydrochloride) and other phosphate binders.
Sales of Hectorol reached $59 million for the nine months ended March 31, 2005. Based on strong third quarter sales, Bone Care increased its revenue guidance on April 26 to a range of $82-$83 million for fiscal year 2005, ending June 30, 2005.
“This transaction provides a great strategic opportunity for Genzyme to expand our renal business further, and to raise the visibility of both product lines with nephrologists and renal patients throughout the world,” said John Butler, president of Genzyme Renal.
With the close expected in the third quarter of the year, Genzyme anticipates the transaction to be neutral in 2005, and accretive beyond.