Friday, March 21, 2008

Genzyme wins, maybe

Genzyme has agreed to pay at least $325 million to win the hotly contested rights to a potentially powerful cholesterol-lowering drug mipomersen being developed by Isis Pharmaceuticals.

The deal, represents a vindication of sorts for Isis. The small company has struggled for 18 years to develop drugs using a gene technology called antisense, so far without notable success.

Under terms of the deal, Genzyme will pay $150 million to purchase 5 million shares of Isis, a stake of a few percent. It will pay $30 a share, about twice the $14.58 closing price of Isis on Monday. In after-hours trading, Isis shares shot up 47 percent, to $21.40.

The Cambridge company will also pay a $175 million license fee and could end up paying up to an additional $1.6 billion if the drug reaches the market and achieves certain sales goals.

Boston Globe

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