CAMBRIDGE, Mass., May 3 /PRNewswire-FirstCall/ -- Genzyme Corporation announced today that it has completed its purchase of IMPATH Inc.'s (IMPHQ.PK) Physician Services business unit, a leader in the rapidly expanding market for oncology testing. Under the asset purchase agreement, Genzyme acquires IMPATH's Physician Services unit and other assets for approximately $215 million in cash. These assets will become part of the Genzyme Genetics business. Genzyme will provide financial guidance on the impact of the transaction to the corporation after completion of its purchase accounting review.
The acquisition of IMPATH's Physician Services unit, highly regarded for its oncology medical expertise and quality service, contributes to Genzyme Genetics' extensive test menu for oncology, prenatal and reproductive medicine. Through acquisition of this unit, Genzyme obtains a leading array of oncology diagnostics in solid-tumor and blood-based cancers, a strong team of board-certified anatomic and clinical pathologists with extensive experience in oncology testing, and laboratories in New York City, Phoenix and Los Angeles. Genzyme will maintain operations at these facilities.
As part of this transaction, Genzyme also acquires IMPATH's Analytical Services unit, which includes a laboratory approved by the U.S. Food and Drug Administration that provides clinical trial testing services to biotechnology and pharmaceutical companies in support of the evaluation of new drugs. The Analytical Services unit is located in the Los Angeles facility.
The addition of IMPATH's cancer diagnostic business -- together with Genzyme's planned acquisition of ILEX Oncology announced this past February -- will significantly expand the company's presence across the entire continuum of oncology patient care, from diagnosis to treatment. These transactions will create opportunities for Genzyme to develop and offer innovative products and services that lead to more accurate diagnoses and more effective treatments for cancer patients.
"This transaction provides Genzyme with the ability to focus on a significant area of unmet medical need with tremendous potential," said Henri Termeer, chairman and chief executive officer, Genzyme Corporation. "It allows us to leverage our twenty years of genetic testing expertise with IMPATH's medical experience in improving diagnosis, treatment and outcomes for cancer patients. In this way, Genzyme can offer a full spectrum of services and ultimately assist physicians in providing the best care possible to their patients with cancer."
"We believe the market for oncology testing will continue to grow, fueled by the development of new sophisticated tests and treatments for cancer," added Mara Aspinall, president, Genzyme Genetics. "The combination of our businesses creates strong synergies that improve therapeutic decision making, benefit physicians, patients and payors, and provide a solid foundation for future innovation. Additionally, this transaction allows us to fully utilize our expertise and build an even stronger infrastructure to support our core commitment to prenatal testing."
IMPATH Physician Services is one of the country's largest laboratories for oncology testing, providing patient-specific cancer information to more than 8,300 physicians in over 2,000 hospitals and 600 oncology practices. It handles more than 160,000 cancer cases per year, including approximately 30 percent of all breast cancers, 15 percent of all difficult-to-diagnose tumors, and 10 percent of all leukemias and lymphomas. Its technology platform is broad, including molecular diagnostics, flow cytometry, cytogenetics and immunohistochemistry.
About Genzyme Genetics
Genzyme Genetics is a leading, nationwide provider of high-quality genetic testing and genetic counseling services for physicians and their patients. With six locations across the United States and operations in Europe and Japan, Genzyme Genetics serves thousands of physicians and patients by providing the added value of more than twenty years of testing expertise; more than 100 physicians, researchers and medical geneticists on-staff to consult on difficult cases and answer questions; the largest network of genetic counselors in the nation; and sophisticated information systems for data collection and reporting.
About Genzyme Corporation
Genzyme Corporation is a global biotechnology company dedicated to making a major positive impact on the lives of people with serious diseases. The company's broad product portfolio is focused on rare genetic disorders, renal disease, osteoarthritis and immune-mediated diseases, and includes an industry-leading array of diagnostic products and services. Genzyme's commitment to innovation continues today with research into novel approaches to cancer, heart disease, and other areas of unmet medical need. More than 6,300 Genzyme employees in offices around the globe serve patients in over 80 countries.
This press release contains forward-looking statements, including statements regarding: the maintenance of operations at IMPATH's facilities and the retention of IMPATH Physician Services employees; the growth of the oncology testing market; the expansion of Genzyme's presence in the oncology market; the expansion of Genzyme's oncology testing services; and the development of new cancer diagnostics. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in these forward-looking statements. These risks and uncertainties include, among others: Genzyme's ability to successfully integrate IMPATH's operations with Genzyme's and the time and resources required to do so; Genzyme's ability to retain IMPATH's employees; the accuracy of Genzyme's estimates concerning the market for oncology testing, including growth projections; the competitive environment in the oncology testing market; Genzyme's ability to enter into agreements with customers; Genzyme's ability to expand its oncology test menu; Genzyme's ability to develop new cancer diagnostics; and the risks and uncertainties described in reports filed by Genzyme with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended, including without limitation the information under the heading "Factors Affecting Future Operating Results" in the Management's Discussion and Analysis of Financial Condition and Results of Operations section of the Genzyme's Annual Report on Form 10-K for the year ending December 31, 2003. Genzyme cautions investors not to place undue reliance on the forward-looking statements contained in this press release. These statements speak only as of the date of this press release, and Genzyme undertakes no obligation to update or revise the statements.
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