Genzyme

(GENZ)

said Synvisc, its product used to treat pain associated with osteoarthritis of the knee, will keep its unique Medicare reimbursement code and rate for 2006.

The Centers for Medicare and Medicaid Services decided not to implement an earlier decision that would have placed all competing products in the same billing category next year.

As a result of the reversal, Medicare patients will continue to have access to Synvisc and the reimbursement won't change for next year.

Genzyme, a biotech company based in Cambridge, Mass., saw its shares rise $2.23, or 3%, to $73.83.