Genzyme Wins AnorMed

Millennium says it won't raise its offer for AnorMed.
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A bidding skirmish for

AnorMed

(ANOR)

has ended with the company agreeing to be acquired by

Genzyme

(GENZ)

.

Under the agreement, Genzyme will acquire AnorMed for $13.50 a share, or around $580 million. AnorMed made the announcement as

Millennium Pharmaceuticals

(MLNM)

said it wouldn't raise its offer for the company.

With the acquisition, Genzyme will gain AnorMed's leading product candidate Mozobil, a stem-cell transplantation agent currently in late-stage clinical trials.

"We believe that Mozobil will be an important therapeutic advance in the field of stem-cell transplantation, and are eager to utilize our global clinical, regulatory and commercial infrastructure to ensure that it reaches patients around the world," said Henri Termeer, Genzyme's chairman and chief executive. This is a strategic fit for us that complements our existing transplant and oncology businesses."

AnorMed's board believes Genzyme's offer "represents the best alternative currently available" to the company's shareholders. The board unanimously recommended that holders support the proposal.

Deborah Dunsire, Millennium's president and CEO, said her company "remains in a strong position as we continue to drive Velcade, advance our pipeline, focus investment and evaluate in-licensing and acquisition opportunities to complement our internal growth."

Millennium is entitled to receive a termination fee of $19.5 million from AnorMed, according to a previous agreement between the companies.

Genzyme's stock was 0.5% lower to $68.28, and AnorMed's shares fell 3% to $13.38. Millennium rose 1.7% to $10.40.