Genzyme plans expansion in Brazil through partnerships
Valor Econômico
Regardless of the future of Genzyme, which received a hostile offer from the French Sanofi-Aventis to acquire its control, the American laboratory keeps firm its plans to expand its businesses in Brazil. Even though there is the intention of having an own plant in the country, the expansion, at this first moment, will still be made through partnerships. In early October, Genzyme declined, for the second time, a US$ 18.5 billion acquisition offer made by Sanofi-Aventis, in other words, an offer of US$ 0.69 per share. The company was sued by investors alleging it acted unfairly by depriving its shareholders the chance of profiting from the offer of the French pharmaceutical company.
Specialized in rare genetic diseases, Genzyme is not among the largest in revenue in its segment, but it keeps on top in research and development (R&D) of treatments. Fourth largest in biotechnology in the world, the company has expertise in fighting rare diseases, such as Gaucher and Fabry, for example -, besides operating in the renal, orthopedics, oncologic and endocrine areas. Gaucher disease is related to problems in an enzyme called glucocerebrosidase, affecting the spleen, liver, bones and the central nervous system (CNS). As regards Fabry's, it is a chronic disease that leads to cardiac, cerebrovascular, and renal ischemia.
In an interview to Valor, Frédéric Turner, President of Genzyme for Latin America, said Brazil is on the radar of the company, together with the United States, France, Japan and India. "We are an international innovation company with modern management. We have investments in several places". According to Turner, Genzyme looks at Brazil as a whole. "Here [for the country] we look at everything, including partnerships and production. Considering the next 5 to 10 years we have to think about everything".
In 2009, Genzyme registered global earnings of US$ 4.9 billion. Latin America had revenues of US$ 300 million - Brazil is responsible for 50% of that result. Turner stressed out that every Latin American country has different contrasts and characteristics and the main challenge of the company in Brazil is to build a solid initiative. "Genzyme is changing all over the world", he said. The group is intensifying the researches in several fronts and it seeks cooperation and partnerships with the private and public sectors, like universities, to advance in the country.