Genzyme Corporation Board Under Investigation

If you are an investor in Genzyme Corporation (NASDAQ:GENZ) shares, who purchased GENZ prior to July 23, 2010, and/or you have any information relating the investigation, you have certain options and you should contact the Shareholders Foundation, Inc.

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Company Name(s): 
Genzyme Corporation
Affected Securities: 

An investigation on behalf of current investors of Genzyme Corporation (NASDAQ:GENZ) over potential breaches of fiduciary duty by the Genzyme board of directors in the event of agreeing to an unfair takeover was announced.

Rumors about a potential buyout of biotechnology company Genzyme have hit the market on July 23, 2010 causing Genzyme shares (GENZ) to jump from $54 to $65 on July 23, 2010, and to continue to raise to $70, after additional reports emerged that Paris-based Sanofi Aventis SA will support a bid up to $70 per share.

According to the investigation by a law firm the board of directors of Genzyme will breach their fiduciary duty if they accept an offer that “undervalues the true or intrinsic value of Genzyme Corporation (NASDAQ: GENZ)”, if the “process is unfair to the shareholders of Genzyme Corporation”, or if they “fail to adequately shop the company before entering into an adequate agreement”. On July 23, 2010, the first reports emerged that Paris-based Sanofi-Aventis SA is about to make an offer for biotechnology company Genzyme Corp. Shares of Genzyme Corporation (GENZ) jumped in response of the takeover rumors from $54.14 per share on last Friday to $65.83 per share, and continue to increase since the beginning of the week to $70.26 per share in after hours trading on July 28, 2010. The Wall Street Journal reported without naming the source on Monday, that London-based GlaxoSmithKline Plc made a “very casual” approach to Genzyme, asking Genzyme to keep GlaxoSmithKline in mind if Genzyme considered selling itself.

Genzyme Corporation, located in Cambridge, MA, has a current market cap of $18.02billion. Genzyme Corporation reported in 2007 Total Revenue of $3.81352billion, in 2008 $4.60504billion, and in 2009 $4.51552billion. Its Net Income was at $480.19 in 2007, at $421.098million in 2008, and at $422.30million in 2008.

Shares of Genzyme Corporation (GENZ) even though increased by roughly $15 since the first reports are still down from $72.59 per share in 2009, and over $83 per share in 2008. Since 2002 GENZ shares have shown an overall upward trend, but lost value in 2009 due to the world financial crisis. But even within midst of a world financial crisis Genzyme was able to increase its Total Revenue from $ $3.81352billion in 2007 at almost one additional billion in Revenue to $4.60504billion n 2008, and to continue its Revenue at nearly the same amount as in 2008 with $4.51552billion in 2009. Considering its consistent Net Income over $400million over the past three years it will be questionable if Sanofi-Aventis SA will have to offer more than $70, and/or if other bidders will enter a bidding war.