Genzyme Will Sell Diagnostic Unit to Japanese Company
November 22, 2010
Reuters reports, U.S. biotechnology company Genzyme Corp will sell its diagnostics business to Japan''s Sekisui Chemical for $265 million. Sekisui said it would use the U.S. and European sales resources of the Genzyme unit to expand its medical products business in those regions. Genzyme said it may use the proceeds from its unit sales to finance the second half of a $2 billion share buyback. It said Sekisui, a partner in its business for more than 15 years, agreed to offer jobs to the diagnostic unit''s 575 employees. The companies aim to close the deal by the end of the year. The diagnostics business provides raw materials and enzymes as well as rapid tests and infectious disease products to drugmakers and health care providers. It is a provider of HDL and LDL cholesterol tests and had 2009 revenue of $167 million.