Pharma BD Deal Intelligence

Genzyme Corporation / Bone Care International, Inc.

2005 · Acquisition/Merger · $600M · Complete

WRONG BY 27 POINTS

Hectorol delivered a strong initial ramp and diversified Genzyme's renal franchise, but a 2011 Medicare reimbursement shift and 2014 patent expiry capped it as a durable niche product rather than the growth engine originally priced in.

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The coverage arc

May 04, 2005 Bone Care International 8-K Exhibit 99.1 (joint press release) Bullish

Genzyme CEO Henri Termeer: 'The addition of the Bone Care organization and the Hectorol brand will solidify and strengthen our growing renal business, while…

May 05, 2005 PharmaTimes Bullish

Genzyme CEO Henri Termeer said the deal would 'solidify and strengthen our growing renal business' by pairing Hectorol with the existing Renagel phosphate…

May 06, 2005 BioWorld Bullish

Stanford Group analyst Dallas Webb called the acquisition 'a very good fit for Genzyme' and 'a very good strategic move,' projecting combined sales-force…

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Genzyme completes $600M cash acquisition of Bone Care; gains Hectorol (doxercalciferol) for renal/secondary hyperparathyroidism.

Did it work? Outcome assessment

Hectorol delivered a strong initial ramp and diversified Genzyme's renal franchise, but a 2011 Medicare reimbursement shift and 2014 patent expiry capped it as a durable niche product rather than the growth engine originally priced in.

Strategic verdict
Partially Achieved

Key facts

Related deals — scored

DealYearValueOutcome
Genzyme Corporation / Bone Care International, Inc. (this deal)2005$600M61
Genzyme Corporation / SangStat Medical Corporation2003$600M78
Genzyme Corporation / ILEX Oncology Inc.2004$1.0B66
Genzyme Corporation / Biomatrix Inc.2000$700M65
Genzyme Corporation / Novazyme Pharmaceuticals Inc.2001$138M54
Genzyme Corporation / Verigen AG2005$50M29
Horizon Pharma plc / Crealta Holdings LLC2015$510M87

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