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Genzyme to Buy Ilex Oncology for $1 Billion in Stock Deal

February 27, 2004|From Associated Press

Biotechnology firm Genzyme Corp. said Thursday that it was buying Ilex Oncology Inc. for $1 billion in stock to bolster its business of providing drugs to treat cancer.

Genzyme, based in Cambridge, Mass., said it would pay $26 a share to stockholders of San Antonio-based Ilex.

Ilex produces Campath, used to treat leukemia, and two drugs in the late stages of seeking regulatory approval.

The deal, announced after the close of trading, would represent a 22% premium over Ilex's closing price. The shares rose 57 cents to $21.37 on Nasdaq.They jumped $3.88 in extended trading.

Shares of Genzyme rose 5 cents to $53.28 on Nasdaq. They fell $1.94 in the extended session.

Genzyme said the acquisition would reduce its earnings in the short term but add to profits in 2006.

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