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12:00 AM
 | 
Aug 11, 2003
 |  BioCentury  |  Strategy

Thymoglobulin isn't a Renagel replay

When one company buys another company with a marketed product, it's frequently safe to conclude that the purchase is being done for that product alone - no matter what the purchaser says about synergies, pipelines or strategic fit. But then there are the exceptions.
Genzyme Corp. says last week's deal to acquire SangStat Medical Corp. for $600 million in cash is not being done for SANG's marketed Thymoglobulin transplant product, although GENZ does believe that it can ramp sales faster than SANG could. Instead, the purchase is part of a longer-term plan to build a business in immune-mediated diseases, an area where GENZ sees significant opportunity to develop therapies for niche markets.
Thus GENZ views the new deal completely differently from its 2000 acquisition of GelTex Inc. While that purchase was mainly about GelTex's Renagel sevelamer phosphate binder, the SANG acquisition is a broader play. And while the SANG acquisition is not expected to produce a drag on GENZ's 20% per year projected growth, it also will not boost growth in the near term.
Elliott Hillback, GENZ's senior vice president of...

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