SangStat Medical Corporation acquired by Genzyme for $680 million in all cash transaction.SangStat Medical Corporation, Fremont, CA, and Genzyme Corporation, Cambridge, MA, announced on August 4th that they have reached an agreement under which Genzyme will acquire SangStat in an all cash transaction valued at approximately $680 million. Under the agreement, Genzyme acquired all outstanding shares of SangStat for $22.50 per share, a premium of about 45% above SangStat's August 1 stock price of $14.25. The purchase moves Genzyme into the organ transplant drug market. SangStat's lead product, Thymoglobulin (antithymocyte globulin globulin, any of a large family of proteins of a spherical or globular shape that are widely distributed throughout the plant and animal kingdoms. Many of them have been prepared in pure crystalline form. ) is indicated in the US for the treatment of acute rejection in kidney transplant patients. SangStat says clinical studies have demonstrated that using Thymoglobulin to treat an acute rejection episode in a kidney transplant patient may reverse the episode. The drug is also approved in several European countries as an indication for induction and treatment in solid organ transplants, treatment of graft vs. host disease, and treatment of aplastic anemia aplastic anemia or anemia of bone-marrow failure Inadequate blood-cell formation by bone marrow. Pancytopenia is the lack of all blood-cell types (erythrocytes, leukocytes, and platelets), but any combination may be missing. . In previous years SangStat was best know for Gengraf, a branded generic cyclosporine cyclosporine /cy·clo·spor·ine/ (-spor´en) a cyclic peptide from an extract of soil fungi that selectively inhibits T cell function; used as an immunosuppressant to prevent rejection in organ transplant recipients and to treat severe co-marketed with Abbott Laboratories, Abbott Park, IL. Gengraf is sold by the same sales force responsible for Thymoglobulin. Gengraf has failed to garner a big market share to date. Genzyme's primary drug in the kidney transplant area is Renagel (sevelamer hydrochloride hydrochloride /hy·dro·chlo·ride/ (-klor´id) a salt of hydrochloric acid. hy·dro·chlo·ride n. A compound resulting from the reaction of hydrochloric acid with an organic base. ), a phosphate binder for patients with end stage renal disease Renal disease Kidney disease. Mentioned in: Glycogen Storage Diseases hypertension High blood pressure Cardiovascular disease An abnormal ↑ systemic arterial pressure, corresponding to a systolic BP of > 160 mm Hg undergoing hemodialysis. The company also has several complementary products in development. They include CAT-192, a human anti-TGF monoclonal antibody monoclonal antibody, an antibody that is mass produced in the laboratory from a single clone and that recognizes only one antigen. Monoclonal antibodies are typically made by fusing a normally short-lived, antibody-producing B cell (see immunity) to a fast-growing , which is being investigated in a Phase II trial with partner Cambridge Antibody Technology (CAT) for treatment of diffuse systemic sclerosis Systemic sclerosis A rare disorder that causes thickening and scarring of multiple organ systems. Mentioned in: Scleroderma systemic sclerosis . CAT-192 is also being examined for its potential in managing chronic organ rejection following transplantation. A second product, GENZ 29155, a small molecule for multiple sclerosis, is expected to enter clinical trials this year, and will also be investigated for its potential in transplantation. The transaction is expected to be completed by early September. No layoffs are anticipated and SangStat's headquarters will remain in Fremont, CA. Contact: Bill Martin, SangStat - (510) 789-4331, Web site: www.sangstat.com, or Dan Quinn, Genzyme - (617) 591-5849, Web site: www.genzyme.com. |
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