US biotech company Genzyme Corporation, which has become a takeover target by Sanofi-Aventis, today said that it has reached an agreement to sell its genetic testing business to Laboratory Corporation of America Holdings (LabCorp) for $925 million in order to focus its resources on core growth areas.
Under the deal, LabCorp will purchase the entire business, including all testing services, technology, intellectual property rights, and its nine testing laboratories. LabCorp said that it is committed to offer employment to the 1900 employees of Genzyme Genetics.
Genzyme Genetics is a provider of reproductive and oncology testing in the US, specialising in esoteric testing, with nine laboratories performing more than a million tests a year.
The business, which also has the largest countrywide network of board-certified genetic counsellors, had revenues of $371 million in 2009.
North Carolina-based LabCorp is one of largest laboratory testing companies in the US specialising in routine testing, with 38 primary testing locations and more than 1,500 patient service centres.
The company offers a range of testing services used by the medical profession in routine testing, patient diagnosis, and in the monitoring and treatment of disease, as well as specialty testing services.