Report: Sanofi-Aventis, Genzyme Speak Acquisition

INDIANAPOLIS – Shares of Genzyme Corp. soared Friday after a inform was published that French curative association Sanofi-Aventis is meddlesome in the biotechnology drugmaker.

The Wall Street Journal reported that Sanofi "made an spontaneous merger approach" to Genzyme, that is formed in Cambridge, Mass. The inform cited "people informed with the matter" and pronounced talks in between the companies are in early stages. It pronounced Genzyme management team are perplexing to figure out what cost Sanofi would be peaceful to pay.

Representatives from both companies declined to criticism on what they called marketplace rumors.

Earlier this month, shares of multiform companies — together with Genzyme — jumped in trade after rumors flush that Sanofi was chasing a big U.S. acquisition.

Like alternative vital general drugmakers, Sanofi has been creation deals to take tiny companies or rights to earnest initial drug to assistance equivalent unsound swell from inner investigate programs and appearing income declines as blockbuster drug get general competition.

Sanofi, that is formed in Paris, is the world's fourth-biggest curative company, with 2009 income of about $35.5 billion. Its top seller is the Lantus insulin code for diabetes, and it mutually markets with Bristol-Myers Squibb Co. the red blood thinner Plavix, the world's No. 2 drug with about $9 billion in sales final year.

Genzyme has been struggling for months with prolongation problems that have marked down prolongation of two key drug for genetic diseases, Cerezyme and Fabrazyme.

It pronounced Wednesday its distinction shrank drastically in the second entertain since of descending sales and charges partly continuous to those problems.

It reported net income of $23,000, or break-even per share, that compares to $187.6 million, or 68 cents per share, a year ago. Excluding one-time costs Genzyme pronounced it warranted 18 cents per share in the ultimate period. Income fell 12 percent to $1.08 billion from $1.23 billion.

Genzyme shares rose 17 percent, or $9.26, to $63.43 in complicated Friday afternoon trading, and set a 52-week tall of $66.96. Meanwhile, U.S.-traded shares of Sanofi fell 4.8 percent, or $1.47 to $29.17.

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CNET news.com Sr. Writer Martin LaMonica takes a closer demeanour at Genzyme's Green Headquarters in Cambridge, MA.

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