French firm to acquire Genzyme in €20bn deal

FRENCH pharmaceutical company Sanofi-Aventis is to acquire US biotechnology firm, Genzyme, in a €20.1 billion deal which is unlikely to adversely affect the latter’s significant Irish presence.

Genzyme — which, yesterday, reported a set of results showing sluggish annual growth, but good fourth quarter recovery — has one of its main manufacturing facilities based in Waterford, employing around 500; a base in which it has invested more than €400m since establishing it ten years ago.

The Cambridge, Massachusetts-based company makes its kidney disease treatment, Renagel, in Waterford and distributes another six key products to patients in more than 60 countries from its base in the south-east.

It is set to keep its trading name, employee numbers and remain trading as usual; despite the takeover.

The likelihood that job numbers will not be affected by the deal has been welcomed by the Mayor of Waterford, Cllr Mary Roche, who said that the local workforce can thrive under the new ownership of Sanofi-Aventis.

“Obviously, from a Waterford perspective, our first priority is ensuring a positive outcome for the Genzyme team here — a group that has grown steadily over the last 10 years and who contribute a great deal to the city and region, both socially and economically.

“The entire Genzyme team in Waterford will, I am sure, seize the emerging opportunities presented by this new beginning for the company.

“In this, they will have the full support of all Waterford stakeholders and can be assured of any Waterford City Council backing they require,” she said.

Genzyme’s annual results showed flat net income of $422.1m (€312.3m) and a marginal revenue rise to $4.04bn. However, a strong fourth quarter hinted at more recovery — with net income going from $23.2m to $471.9m and revenue rising from $938.3m to $1.15bn.

The takeover deal, meanwhile, has been unanimously approved by the boards of both companies and is likely to be concluded during the second quarter of this year.