As reported in Xconomy and Fierce Biotech, Genzyme has shed its diagnostics business unit to Sekisui Chemical for $265 M. The diagnostics business, which brought in $167 million in 2009 revenue, sells raw materials and other products for the cardiovascular, diabetes, infectious disease, and renal health markets. The purchase of diangostics by Sekisei may be a good strategic move for the business.
This is the second of the three business units that have been sold in 2010 after Genzyme said it would divest earlier in the year to improve its focus. The sale is seen as another postive to improving Genzyme's value and perhaps further bolsters its case as to why Sanofi's $18.5 B offer is too low. Earlier this year, Genzyme sold its genetics testing business to Labcorp for $925 M. Genzyme has said that it may use the proceeds from these sales to buy back its second $1 B in stock as part of an overall $2 B buy back program.
Posted by Bruce Lehr November 18th 2010.