Genzyme's Gene Therapy Grows

Genzyme (GENZ Quote) has expanded its gene-therapy technologies by acquiring a group of assets from biotech outfit Avigen (AVGN Quote).

Genzyme paid Avigen $12 million and will make milestone and royalty payments based on product developments, approvals and sales. The purchase includes patent rights on Avigen's virus technology and an early-phase Parkinson's disease clinical trial program, as well as a collaboration on a treatment for hemophilia, a bleeding disorder.

Shares of Avigen initially shot up 5% when the market opened Wednesday, but were recently trading down 1 cent at $2.94. Genzyme shares were up $1.72, or 2.4%, to $72.44.

The move is Genzyme's latest bid to bolster its gene technology. Last month it acquired Cell Genesys' (CEGE Quote) viral manufacturing facilities.

"We look forward to advancing Avigen's ongoing work in Parkinson's disease and hemophilia, areas where we believe gene therapy could play a meaningful role in treatment," said Rich Gregory, Genzyme's head of research.

Avigen is shifting its focus to neurological disorders, according to its president and CEO, Kenneth Chahine. The deal, he says "makes sense at multiple strategic and financial levels."