S&P: Genzyme unaffected

Standard & Poor's said Wednesday that the ratings and outlook on biotech company Genzyme Corp. (BBB/stable/--) would not be affected by the company's announcement that it is planning to acquire certain assets of Impath Inc. for $215 million in cash.

Cambridge, Mass.-based Genzyme had also recently announced plans to acquire Ilex Oncology Inc. for $1 billion in stock. In late 2003, the company completed the purchase of another company, Sangstat Medical Corp., for $650 million in a debt-financed acquisition.

S&P said this heightened level of acquisition activity is already incorporated into the current ratings on Genzyme. In the meantime, the company's increasingly diverse portfolio of pharmaceuticals and solid cash flows support the ratings.

S&P said it believes that Genzyme will continue to use a prudent mix of debt and equity financing to fund its acquisitions and maintain a moderate financial profile.

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