Court affirms Genzyme disclosure dismissal

The U.S. Court of Appeals for the First Circuit dismissed a class action suit alleging that Genzyme Corp. defrauded investors by not disclosing GMP violations found during an October 2008 inspection of its Allston, Mass., manufacturing facility. In June 2009, Genzyme halted production of its two top drugs -- Gaucher's disease therapy Cerezyme imiglucerase and Fabry's disease therapy Fabrazyme agalsidase beta -- after a vesivirus infection at the facility, leading to a shortage that would persist into 2012, force the facility under FDA consent decree and batter the company's revenues and stock price (see BioCentury, Nov. 16, 2009). ...