Genzyme Corp. said it’s being sued by
shareholders of its surgical products division because of a plan
to eliminate the business as a separately traded company.
Cambridge, Massachusetts-based Genzyme is combining its
surgical and cancer business tracking stocks under the parent
company’s own ticker. Genzyme Biosurgery makes products that
repair damaged tissue and Genzyme Molecular Oncology develops
cancer drugs.
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Genzyme is ending the three-company structure after saying it
failed to attract enough investors. Some Genzyme Biosurgery
shareholders have said the offering price for their stake is too
low.
The company is offering .04914 a share of its own stock for
each share of the surgery unit. Genzyme is offering .05653 a share
for each share of the cancer business. The stock swap will take
place on June 30.
The lawsuit, filed in Massachusetts Superior Court, is
“without merit,” Genzyme said in a statement. David Pastor,
attorney for Biosurgery shareholders didn’t immediately return a phone call seeking comment.
Genzyme shares fell 25 cents to $46.59 as of 4 p.m. New York
time in trading on the Nasdaq Stock Market.
Bloomberg News
