BioMarin, Genzyme restructure Aldurazyme joint venture

05 January 2008

BioMarin Pharmaceutical Inc. and Genzyme Corporation have announced a restructuring of their joint venture regarding Aldurazyme (laronidase), though under the revised structure, the operational responsibilities for BioMarin and Genzyme will not significantly change.

Genzyme will continue to market and sell Aldurazyme for mucopolysaccharidosis I (MPS I) globally, which BioMarin will continue to manufacture.

As of 1 January 2008, instead of sharing all costs and profits equally through their 50 : 50 joint venture, Genzyme will record sales of Aldurazyme and will pay BioMarin a tiered payment ranging from approximately 39.5 to 50 per cent of worldwide net product sales, which will also be recorded by BioMarin as product revenue.

Under the revised structure, payments are projected to result in both BioMarin and Genzyme receiving approximately the same profit as under the original joint venture structure. BioMarin will receive all the benefits from increased manufacturing efficiencies and Genzyme will receive all of the benefits from increased commercialisation efficiencies.

Certain research and development activities related to Aldurazyme and intellectual property will continue to be managed in the joint venture on a 50 : 50 basis.

"This new structure provides both companies a better alignment of financial incentives with operational decisions and represents a more appropriate structure for two companies manufacturing and commercializing multiple products," said Jean-Jacques Bienaim, chief executive officer of BioMarin. "This structure will also reduce management time and provide stronger incentives for each company to maximize the efficiency of its own operations related to Aldurazyme. Lastly, this new structure allows the companies to collaborate and equally share costs on research projects which could lead to important advances for MPS I patients."