Company news: Genzyme, inVentiv
Genzyme said it agreed to sell its genetic testing business to LabCorp for $925 million in cash, roughly three times the unit's 2009 revenue. Jefferies analyst Eun Yang said the sale of Genzyme Genetics does not change the course of the biotech firm's potential to be bought. The company recently rejected Sanofi-Aventis' $18.5-billion takeover offer, or $69 a share. Two other business units are also on the block—the diagnostic products and pharmaceutical intermediates businesses—under a five-part plan Genzyme announced in May to increase shareholder value that also includes cost-cutting. The Boston Globe put the number of layoffs expected at the Cambridge, MA, firm at 1,000 employees worldwide over 15 months. More details of the cost-cutting are expected later this week.
InVentiv is merging Irvine, CA-based medical advertising shop Ignite Health with Manhattan-based Y Brand, a healthcare branding and strategy firm. Y Brand will remain in Manhattan as a division of Ignite Health, and president Vince Perry will become chief branding officer for Ignite Health