Genzyme Corporation (GENZ) recently provided encouraging follow-up phase II data on its type I Gaucher disease candidate, eliglustat tartrate. Three year follow-up data showed that patients on eliglustat tartrate experienced sustained or additional improvement across all endpoints.
While spleen volume declined by a mean of 61% from baseline, liver volume declined 29%. Meanwhile, hemoglobin level increased by a mean of 2.6 grams per deciliter from baseline. Platelet count increased by a mean of 91% from baseline.
Eliglustat tartrate, a capsule, is currently being studied in three global, multi-center, phase III trials. An oral treatment, if developed successfully, would provide patients with a more convenient dosing regimen. Genzyme’s Cerezyme, the current standard of care, is administered through intravenous infusions. Other treatments include Shire’s (SHPGY) Vpriv.
The encouraging data on eliglustat tartrate comes immediately after Genzyme announced that it has entered into a definitive agreement with French pharma giant Sanofi-Aventis (SNY) for the acquisition of Genzyme. Per the terms of the agreement, Genzyme shareholders will receive $74 per share in cash (or $20.1 billion) in addition to a contingent value right(CVR) for each share.
The CVR will allow each shareholder to receive additional payments related to Lemtrada (alemtuzumab for multiple sclerosis) and the achievement of specified production volumes in 2011 for Cerezyme and Fabrazyme.
The acquisition, which will boost Sanofi’s revenues as well as its pipeline and provide it with the chance to expand its presence in biotechnology, is scheduled to close early in the second quarter of 2011.
We currently have a Neutral recommendation on Genzyme, which is supported by a Zacks #3 Rank (short-term “Hold” rating).
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