PR-GENZYME MOLECULAR ONCOLOGY STOCK TO TRADE ON NASDAQ
Genzyme General Shareholders to Receive Stock Dividend
CAMBRIDGE, Mass., Sept. 21 /PRNewswire/ -- Genzyme Corporation
announced today that shares of Genzyme Molecular Oncology common stock
will begin trading on or before November 30, 1998 on the Nasdaq
National Market under the ticker symbol GZMO. A public market for the
stock will be created by the distribution of shares of Genzyme
Molecular Oncology common stock as a tax- free stock dividend to
Genzyme General (Nasdaq: GENZ) shareholders and the release from escrow
of Genzyme Molecular Oncology shares held by former PharmaGenics Inc.
shareholders.
Genzyme Corporation also announced that it has withdrawn its
registration statement for Genzyme Molecular Oncology common stock and
will not raise money in a public offering at this time.
"There are tremendous opportunities to develop innovative gene-based
products to treat cancer," said Henri A. Termeer, chairman, chief
executive officer, and president of Genzyme Corporation. "We believe
that the best way to bring a new generation of cancer therapeutics to
patients is through the integration of key technologies. By allowing
Genzyme Molecular Oncology shares to trade, investors will have the
opportunity to participate in these exceptionally exciting programs."
Genzyme Molecular Oncology combines four gene-based approaches to
develop and commercialize novel cancer therapeutics and diagnostics:
gene discovery, gene therapy, small molecule drug discovery, and
molecular diagnostics. Genzyme Molecular Oncology's therapeutic product
focus is on cancer vaccines and inhibitors of angiogenesis. The
division has completed two phase I cancer vaccine trials in melanoma
and plans to begin three additional clinical trials in melanoma,
ovarian cancer and breast cancer in the next year.
A new generation of cancer therapeutics is now possible with the
advances made in the genetic understanding of the disease. Genzyme
Molecular Oncology is uniquely positioned to be a consolidator and
integrator of technologies to commercialize innovative cancer products.
To that end, Genzyme Molecular Oncology has established two dozen
collaborations with leading academic and commercial entities, including
Schering-Plough, Merck, the National Cancer Institute, and the
Dana-Farber Cancer Institute.
Currently, Genzyme Molecular Oncology receives revenue from agreements
with several pharmaceutical companies for use of its SAGE(TM)
differential gene expression technology as well as from research
collaborations. This revenue funds approximately two-thirds of its
operating expenses. Genzyme Molecular Oncology earned $4.5 million in
revenues in the first half of 1998, had cash and short term investments
of $9.8 million as of June 30, 1998, and has access to a $30 million
equity line of credit from Genzyme General. Genzyme Molecular Oncology
anticipates cash losses of approximately $10 million per year for the
next two to three years.
Genzyme Molecular Oncology was formed in June 1997 when Genzyme
Corporation acquired PharmaGenics, Inc., an Allendale, N.J.-based
genomics company, and combined PharmaGenics' technologies with several
oncology programs within Genzyme General. As part of the transaction,
PharmaGenics shareholders were given approximately 3.9 million Genzyme
Molecular Oncology shares. In addition, 6 million Genzyme Molecular
Oncology "designated shares" were reserved for the benefit of Genzyme
General shareholders in exchange for the assets it transferred to
Genzyme Molecular Oncology.
In August 1997, Genzyme Molecular Oncology raised $20 million in a
private placement of 6% convertible debentures. The terms of the
debenture allow investors to exchange it for a Genzyme General
debenture. As a result of this exchange, additional designated shares
will be created and distributed for the conversion of the Genzyme
Molecular Oncology debenture into a Genzyme General debenture and to
repay an additional $2.8 million debt due Genzyme General.
The exact number of shares to be distributed to Genzyme General
shareholders as a stock dividend will be determined based on the
valuation of the molecular oncology business. These details, along
with record and pay date information, will be announced by the end of
October.
Genzyme Molecular Oncology develops gene-based approaches to cancer
therapy and diagnosis through genomics, gene therapy, small-molecule
drug discovery, and genetic diagnostics. A division of Genzyme Corp.,
Genzyme Molecular Oncology has its own common stock, which is not yet
publicly traded, intended to reflect its economic value and
performance.
This press release contains forward-looking statements concerning the
commencement of clinical trials, the ability of Genzyme Molecular
Oncology to develop and commercialize cancer therapeutics and
diagnostics, and the division's future operating results. Actual
results may differ materially depending on, among other things, Genzyme
Molecular Oncology's ability to successfully complete preclinical and
clinical development of its products on a timely basis and to obtain
timely regulatory approvals, 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 Corporation
-0- 09/21/98 /CONTACT: Bo Piela, Media
Relations, 617-252-7785 or Caren Arnstein, Investor Relations,
617-252-7570, of Genzyme Corporation/
/Company News On-Call: prnewswire.com or fax, 800-758-5804,
ext. 104284/
/Web site: genzyme.com (GENZ)
CO: Genzyme Corporation ST: Massachusetts IN: MTC SU: DIV
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