Genzyme Corp. has completed the transaction to buy back the sales and marketing rights to Synvisc (hylan G-F 20) in the United States and five European countries from Wyeth. The cash transaction is accretive to Genzyme.
Synvisc is indicated for the treatment of pain due to osteoarthritis (OA) of the knee in patients who have failed to respond adequately to conservative nonpharmacologic therapy and simple analgesics, for example, acetaminophen.
Genzyme will now record all Synvisc end-user revenue in the US and five European countries (Germany, Poland, Greece, Portugal and the Czech Republic). Synvisc is the leading viscosupplementation product for the treatment of pain due to osteoarthritis of the knee in the US and Canada, and one of the top products in this category in Europe.
"This is a strategic franchise for Genzyme and one of our key areas of growth and investment," said Ann Merrifield, president of Genzyme Biosurgery, the unit of Genzyme Corporation that manufactures Synvisc. "Wyeth has positioned Synvisc well in the market and we now look forward to building on this success and realizing the full value of the product moving forward," Merrifield added.
Synvisc has become the top-selling viscosupplement because of the benefits that it provides patients who experience pain due to osteoarthritis of the knee. Since it is delivered locally, Synvisc avoids some of the associated side-effects of traditional non-steroidal anti-inflammatory drugs and COX-2 agents. Additionally, Synvisc is the only viscosupplement on the US market that can provide up to six months of osteoarthritis knee pain relief with just three injections per treatment regimen. For these reasons, Synvisc has been used to treat more than three million patients worldwide.
Genzyme and Wyeth have worked closely together since the transaction was announced last November to ensure a seamless transition for all Synvisc customers. Genzyme now has full responsibility for marketing, selling and supporting the product.
As part of the closing, Genzyme paid Wyeth $99 million in cash for the marketing rights to Synvisc in the US and the five European countries. Genzyme will pay an additional $22 million to Wyeth during the first quarter of 2005 upon the final transition of the franchise. In the future, Genzyme also will make a series of milestone payments to Wyeth based on the volume of Synvisc sales. These additional payments could extend out to June, 2012, or could total a maximum of $294 million, whichever comes first. Genzyme plans to issue specific guidance related to Synvisc in its fourth quarter earnings press release on February 17, 2005, release from Genzyme said.
In addition to the five European countries included in this transaction, Synvisc is already sold and distributed directly by Genzyme in the UK, France, Canada and Australia. Wyeth will continue to market and distribute Synvisc in Turkey under a new agreement with Genzyme.