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Genzyme sets purchase
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October 18, 1999: 11:32 a.m. ET
Biotech firm buying gene therapy developer Cell Genesys for $350M stock
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NEW YORK (CNNfn) - Biotech firm Genzyme General Corp. agreed Monday to buy Cell Genesys Inc. for about $350 million in stock, boosting Genzyme's efforts to develop protein and gene-based therapies.
Under the terms of the deal, Cell Genesys shareholders will receive a fraction of a share of Genzyme stock for each Cell Genesys share they own. The exact ratio will be calculated based on the average closing price of Genzyme shares in the month preceding the closing of the deal. Based on a $350 million total estimated value of the deal and 35 million shares outstanding of Cell Genesys stock, each Cell Genesys share would be worth approximately $10.
Shares of Foster City, Calif.-based Cell Genesys (CEGE) rose 1-11/16 to 8-11/16 Monday morning. Genzyme (GENZ) shares dropped 2-11/16 to 36-11/16.
Cell Genesys also owns about 22 percent of biotech company Abgenix Inc. (ABGX). Its stock was down 1-7/8 to 36-7/8 Monday morning.
Cambridge, Mass.-based Genzyme said it will retain Cell Genesys' California operations. The deal should result in a one-time charge in the first quarter of 2000, when the merger is expected to close. 
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Genzyme
Cell Genesys
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