Mergers, Acquisitions and Takeovers Case Study

Genzyme’s Acquisition Proposal for AnorMED, Inc.

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Abstract:
US based biotechnology company Genzyme made an offer to acquire AnorMED, a Canadian chemistry-based research organization with an offer price of $7.75 per AnorMED’s share, a 14% premium over the closing price. The acquisition of AnorMED would provide Genzyme the access to ‘Mozobil’, a rapid stem cell mobilizer. Moreover, the former also had a strong pipeline of drugs in anti-retroviral and oncology therapeutic segments. The phase III clinical study of Mozobil was successful and the product was expected to be a blockbuster in the area of stem cell transplant. Genzyme wanted to commercialize Mozobil, based on its global infrastructure and sales network. In that respect, the company started discussions with AnorMED regarding Mozobil in October 2005. Genzyme could have got access to Mozobil either through in licensing, or by acquiring AnorMED. But, AnorMED did not agree to the in licensing proposal as the company was looking for licensing opportunities only in Japan and decided to launch Mozobil in the North America and Europe independently by developing its own marketing and distribution network. Genzyme was left with the option to acquire AnorMED, to strengthen its existing transplant product portfolio. This case deals with the proposed acquisition of AnorMED by Genzyme. It provides a brief overview about the two companies and highlights the reasons for acquisition. This is followed by a brief overview of the transplant market and the importance of mozobil for Genzyme. The case also deals with the expected synergies and possible challenges that will result in the process of the acquisition.

Pedagogical Objectives:

• To have a brief idea about the stem cell transplant
• To understand how can stem cell transplant change our way of living
• To analyze the reasons, why Genzyme is concentrating on the transplant product segment
• To conceptualize ‘Hostile Bid’ and ‘Poison Pill’ strategies

Keywords : Acquisition;Mergers,Acquisitions,Alliances Case Study; Synergy; Genzyme; AnorMED; Biotechnology; Stem cell; Transplant; Mozobil; Clinical trial; Oncology; Anti-retroviral; Leukaemia; Chemotherapy; Orphan drug; Bought out deal

Contents : 
Genzyme: Growing Through Acquisitions and Partnerships
Mozobil: A Waiting Blockbuster?
Genzyme’s Next Move!!
Strategic Partnership of Genzyme
Future Outlook of Genzyme
Strategic Partnership of AnorMED
Consolidated Balance Sheet Data of Genzyme Corporation