Breaking News From Pharma & Bio Ingredients
Genzyme Clears Final Acquisition Hurdle
Posted on 2005-06-30 06:15:00
Bone Care International Inc. shareholders approved Genzyme's proposal to acquire the company for $600 million. The acquisition becomes effective July 1. Shares of Bone Care will stop trading at market close today and will be delisted from the Nasdaq.
In May, Genzyme said it would acquire Bone Care's 20.2 million shares outstanding for $33 per share, or about $600 million, net of Bone Care's $119 million in cash. Genzyme said it has access to about $1.5 billion in cash and cash equivalents, plus a line of credit. The transaction is expected to be neutral to earnings in 2005, and boost earnings starting in 2006.
Genzyme said the acquisition will speed its entry into the market for earlier-stage kidney disease products. The company said it plans to integrate Bone Care into its renal business and said that as soon as the deal is final, sales representatives from both companies will begin selling two kidney disease-related products, Hectorol and Renagel, to physicians in the U.S. who specialize in diagnosing and treating kidney disease.
As part of the transition, Genzyme said it will retain a majority of Bone Care's employees and will maintain a presence at Bone Care's Middleton, Wis., headquarters for the foreseeable future. Those employees who don't move to Genzyme will be offered severance packages.
Subscribe via RSS
