Monday November 16, 8:38 am Eastern Time
Company Press Release
SOURCE: Genzyme Molecular Oncology
Genzyme Molecular Oncology Stock Begins Trading Today
Shares Distributed to Genzyme General Shareholders
CAMBRIDGE, Mass., Nov. 16 /PRNewswire/ -- Genzyme Corp. announced that Genzyme Molecular Oncology common stock begins trading today on the Nasdaq National Market under the ticker symbol GZMO. There are approximately 12.7 million shares outstanding.
In addition, Genzyme Molecular Oncology shares will be distributed today as a tax-free dividend to Genzyme General (Nasdaq: GENZ - news) shareholders of record as of November 2, 1998. The dividend is 0.10805 share of Genzyme Molecular Oncology common stock for each share of Genzyme General owned. Cash will be paid for fractional shares at $7.00 per share.
Genzyme Molecular Oncology is developing a new generation of cancer products, focusing on cancer vaccines and inhibitors of angiogenesis. The company has completed two phase I cancer vaccine trials in melanoma and plans to begin three additional clinical trials in melanoma, breast cancer, and ovarian cancer in the next year.
Genzyme Molecular Oncology has formed over two dozen commercial and academic collaborations since its inception in June 1997. Most recently, the company announced that it had licensed its p53 gene therapy patent rights to Schering-Plough Corporation [NYSE:SGP - news]. Under the terms of this agreement, Genzyme Molecular Oncology received a $5 million up-front payment and could receive in excess of $35 million in patent, product development and sales milestone fees, in addition to royalties on product sales. In addition to the p53 patent license, the two companies have a separate existing research and option agreement that could contribute significant revenue to Genzyme Molecular Oncology.
Genzyme Molecular Oncology has also entered into collaborations with Merck & Co., Warner-Lambert, and Bayer Corporation. The company's academic collaborators include the National Cancer Institute, the Dana Farber Cancer Institute, and the Ludwig Cancer Research Institute.
Genzyme Molecular Oncology had cash and short term investments of $8.1 million as of September 30, 1998, and has access to a $30 million equity line of credit from Genzyme General. Genzyme Molecular Oncology anticipates that these funds, in addition to revenues, will be sufficient to cover its operating costs for the next three years.
Genzyme Molecular Oncology is developing novel cancer therapeutics and diagnostics using four gene-based technologies: gene discovery, gene therapy, small-molecule drug discovery, and genetic diagnostics. A division of Genzyme Corp., Genzyme Molecular Oncology has its own common stock intended to reflect its economic value and track its performance.
This press release contains forward-looking statements concerning the commencement of clinical trials, the ability of Genzyme Molecular Oncology and Schering-Plough to develop and commercialize products under its agreements and of Genzyme Molecular Oncology to achieve performance milestones under those agreements, and the division's future operating results and cash requirements. Actual results may differ materially depending on, among other things, Genzyme Molecular Oncology and Schering-Plough's ability to successfully complete preclinical and clinical development of its products on a timely basis and to successfully market any products that are developed, the content and timing of decisions made by the U.S. Food and Drug Administration regarding Genzyme Molecular Oncology's products, Genzyme's ability to obtain and maintain patent and other proprietary rights protection of its products and services, acceptance of such products and services by the market and by third-party payers, the competitive environment for cancer therapeutics and diagnostics, and other risks described under the heading ''Factors Affecting Future Operating Results'' beginning on page 17 of the 1997 Genzyme Molecular Oncology Annual Report.
Genzyme's releases are on the World Wide Web at genzyme.com. They are also available from Genzyme's fax-on-demand service at 1-800-436-1443 within the United States or 1-201-521-1080 outside the United States.
SOURCE: Genzyme Molecular Oncology |
