Genzyme Finally Sells – Henri Termeer to Resign

Filed in Business, Featured, Local News by on February 16, 2011 0 Comments
Courtesy of the World Economic Forum

Courtesy of the World Economic Forum

Well whether you wanted Genzyme to be bought or not many of us are happy the back and forth with Sanofi-Aventis is finally over.  The 9 month drama was painful to watch since most of us in Massachusetts are wary of what the takeover may bring.  Though many second guessed Genzyme management for not accepting the initial offer of  $69 per share or $18.5 Billion that was offered 9 months ago it seems Genzyme management knew what they were doing.

The deal increased the purchase price to $74 per share or $20.1 Billion and contingent payments based on milestones for Genzymes leading drugs and a new one for multiple schlerosis.  The exact terminology based on the Sanofi-Aventis press release is as follows:

In addition to the cash
payment, each Genzyme shareholder will receive one Contingent Value Right (CVR) for each
share they own, entitling the holder to receive additional cash payments if specified milestones
related to Lemtrada™ (alemtuzumab MS) are achieved over time or a milestone related to
production volumes in 2011 for Cerezyme® and Fabrazyme® is achieved.

Genzyme is not just important to Cambridge but to all of Massachusetts as it is one of our major employers in the state.  We can only hope that Sanofi-Aventis’ statement that “it will maintain a sizeable presence in the Greater Boston area” does not include significant layoffs.

Henri Termeer will resign following the close of the deal but will remain as an adviser to the integration committee.  His presence as a key business leader in Massachusetts will be missed.  It will interesting to see where he goes from here.

Here is the link to the official press release by Sanofi-Aventis.

Here is an updated more in depth video on the deal from NECN:

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