LabCorp Purchases Genzyme's Genetic Testing Business

Genzyme Corporation (Cambridge, MA, USA) has completed the sale of Genzyme Genetics to Laboratory Corporation of America Holdings (Burlington, NC, USA) for US$925 million in cash.

Under the final terms of the agreement, LabCorp purchased substantially all of the assets of the Genzyme Genetics business, including testing services, technology, intellectual property rights, and the rights to continue operations at the unit's nine genetic testing laboratories. All employees of Genzyme Genetics were offered similar positions at LabCorp.

Genzyme is a leading biotechnology company dedicated to making a major positive impact on the lives of people with serious diseases. The company's products and services are focused on rare inherited disorders, kidney disease, orthopedics, cancer, transplant, and immune disease. In the year 2010, the company was named to the Fortune 500.

The sale to LabCorp represents the completion of the first of three planned divestitures previously announced by Genzyme. Earlier in November 2010, the company entered into an asset purchase agreement under which Sekisui Chemical Co., Ltd. will acquire Genzyme's Diagnostic products business for $265 million in cash. The company also plans to divest its Pharmaceuticals business. Proceeds from the three transactions may be used to finance the remaining half of the Genzyme's planned $2 billion stock repurchase.

Complex reproductive and oncology testing services are also provided by Genzyme Genetics. "Closing the acquisition of Genzyme Genetics firmly establishes LabCorp as the premier genetics and oncology laboratory in the United States and further strengthens LabCorp's leadership position in personalized medicine. We are excited to welcome the Genzyme Genetics personnel to our LabCorp family," said David P. King, chairman and CEO of LabCorp.

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Laboratory Corporation of America Holdings