Genzyme will acquire partner Bioenvision for approximately $345 million to gain exclusive, worldwide rights to leukemia drug clofarabine. This all-cash transaction represents a price of $5.60 per outstanding common share and a premium of about 50% over the last 20 trading-day average, according to Genzyme.
The two companies co-developed clofarabine, which is marketed for relapsed and refractory pediatric acute lymphoblastic leukemia (ALL) patients. Genzyme thus gained the European rights that were previously held by Bioenvision. Genzyme is also developing the drug for use as a first-line therapy in adult acute myeloid leukemia (AML). Clofarabine has orphan drug status for ALL and AML in the U.S. and EU.
"Strategically, financially, and operationally, this acquisition makes great sense for our business," states Mark J. Enyedy, senior vp and general manager of Genzyme Oncology. "We have developed a comprehensive understanding of clofarabine and its clinical potential and are fully engaged in expanding its use into adult populations, most notably and nearest-term in AML. Full ownership will accelerate the development and commercialization of this important therapy."
Bioenvision also markets Modrenal® in the U.K. for the treatment of post-menopausal breast cancer following relapse from initial hormone therapy. The company’s pipeline addresses unmet needs in autoimmune disease and infectious disease.
Genzyme's acquisition of Bioenvision is expected to be completed in July. The transaction should be approximately six cents dilutive in 2007, slightly dilutive to break-even in 2008, and accretive in 2009, according to Genzyme.