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Genzyme Closes Sale Of Diagnostic Products Unit

Genzyme Corp. said Tuesday it completed the sale of its diagnostic products business to Sekisui Chemical Co. Ltd. for $265 million in cash.

CAMBRIDGE, Mass. (AP) -- Genzyme Corp. said Tuesday it completed the sale of its diagnostic products business to Sekisui Chemical Co. Ltd. for $265 million in cash.

In November, Genzyme said the deal would help it focus on key areas of future growth like its product pipeline and rare disease business. Sekisui also entered into deal to supply Genzyme with certain enzymes needed to make the drug Cerezyme.

The sale of the diagnostic unit is part of a larger push by the company to sell nonessential units. In December, it completed the $925 million sale of its genetic testing business to Laboratory Corp. of America Holdings.

The company also said Tuesday it will sell its pharmaceutical intermediates unit to International Chemical Investors Group of Luxembourg for an undisclosed amount. It expects to close that deal -- which includes a five-year supply contract for materials needed for developing drugs -- during the first quarter.

Meanwhile, Genzyme Corp. said Monday it will share nonpublic information with Sanofi-Aventis SA, eight months after word leaked that the French drug developer was pursuing Genzyme. Genzyme has repeatedly rejected Sanofi-Aventis' $18.5 billion buyout offer, which comes as the company recovers from manufacturing issues.

In June of 2009, the company shut down its Allston plant for about three months to clean up viral contamination that had been slowing production of the drugs Cerezyme and Fabrazyme. The virus was not harmful to people, but the shutdown was costly. Then, in November of 2009, the FDA said it found tiny particles of steel, rubber and fiber in drugs made by Genzyme. The drugs included Cerezyme, Fabrazyme, Myozyme and Thyrogen.

Genzyme's best-seller Cerezyme treats Gaucher disease, an enzyme disorder that can result in liver and neurological problems. Its second-best seller, Fabrazyme, treats an inherited disorder known as Fabry disease, which is caused by the buildup of a particular type of fat in the body's cells. Other drugs include Myozyme, which treats Pompe disease, which interferes with muscle development and Thyrogen, which is used to diagnose thyroid cancer.

Since the beginning of 2010, Genzyme has restructured its manufacturing operations, naming a new president of global manufacturing and corporate operations, along with a senior vice president of global product quality.