Genzyme Corporation and Bone Care International have signed a definitive merger agreement under which Genzyme will acquire Bone Care in an all cash transaction valued at $33.00 per fully diluted share, or approximately $600 million, net of Bone Care's cash of $119 million.

With the close expected in the third quarter of the year, Genzyme expects the transaction to be neutral in 2005, and accretive beyond. Genzyme will provide specific advice upon completion of purchase accounting, the release stated.

The acquisition of Bone Care brings Genzyme a complementary line of products and a profitable commercial organization that will strengthen and diversify Genzyme's renal business. Bone Care's Hectorol (doxercalciferol), a line of vitamin D2 pro-hormone products, is used to treat secondary hyperparathyroidism in patients on dialysis, where it can be used in tandem with Genzyme's Renagel (sevelamer hydrochloride) and other phosphate binders. Hectorol is available in intravenous form for patients on haemodialysis, and in oral forms primarily used by patients with earlier stage chronic kidney disease (CKD). It is the first and only vitamin D2 analog approved to treat the continuum of chronic kidney disease.

Sales of Hectorol reached $59 million for the nine months ended March 31, 2005. Based on strong third quarter sales, Bone Care increased its revenue guidance on April 26 to a range of $82-$83 million for fiscal year 2005, ending June 30, 2005.