Cell Genesys sells San Diego manufacturing operation to Genzyme

New York, Nov. 22 - Cell Genesys, Inc. has sold its San Diego manufacturing operation to Genzyme Corp. for $3.2 million in cash, the companies announced Tuesday.

Under the agreement, Genzyme will receive the assets in the 47,000 square foot leased facility and most of the 40 employees will now work for Genzyme.

Genzyme plans to use the acquired assets and the new facilities to support its ongoing research and clinical trials and to broaden the company's manufacturing capabilities related to both adenovirus and adeno-associated virus vectors. These vectors are used to deliver genes to the appropriate cells in patients.

Cell Genesys originally bought the operation from Chiron Corp. in 2001 for $4.8 million. Its decision to sell was part of a strategic restructuring plan to focus its resources on its most advanced and most promising product development programs. The portfolio decisions resulted in a reduction of the company's manufacturing needs in the viral product area.

The agreement includes an opportunity for Cell Genesys to have its lead oncolytic virus therapy product, CG0070, manufactured under contract with Genzyme. CG0070 is in a phase 1 trial for recurrent bladder cancer.

Cell Genesys maintains its principal manufacturing operations for GVAX cancer vaccines in Hayward, Calif.

Cell Genesys is a South San Francisco, Calif., company focused on the development and commercialization of novel biological therapies for patients with cancer.

Genzyme is a Cambridge, Mass., biotechnology company.

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