Genzyme buys Verigen to boost orthopedic offering

Verigen’s proprietary cell therapy product, called MACI, is for cartilage repair and is currently sold in Europe and Australia. MACI will both expand Genzyme’s orthopedic offerings in these markets, and provide a strong second generation product to develop for the US market. Carticel, Genzyme’s first generation product, has been used in more than 10,000 patients since its introduction in 1995.

Genzyme has acquired Verigen for $10 million in initial payments, with potential additional payments of up to $40 million over the next six years, based upon the achievement of development and commercial milestones. These include approval of a biologic license application in the US, marketing approval in the US, and royalties on sales.

To date, Genzyme has acquired approximately 96% of Verigen’s shares, and anticipates acquiring the remaining shares in the first half of the year.

“We look forward to building on Verigen’s established presence with orthopedic surgeons in Europe and Australia – where we already market Synvisc for pain from osteoarthritis of the knee – and to launching US clinical trials for MACI by early 2006,” said Ann Merrifield, president of Genzyme Biosurgery.

Verigen’s patent-protected MACI approach offers a more convenient method of delivery than the traditional autologous chondrocyte implantation (ACI) method used with Carticel, and has been delivered to more than 3,200 patients in Europe and Australia since it was first offered in 1998.