Bioenvision shareholder offers plan to boost company's value after sale to Genzyme is rejected

By Lisa Kerner

Charlotte, N.C., July 11 - Bioenvision, Inc. shareholder SCO Capital Partners LLC, which previously called on the company to abandon its proposed sale to Genzyme Corp., put forth its plan that "will unlock significant unrealized value in Bioenvision and the clofarabine asset specifically."

In a letter to the company's board members, SCO outlined its plan that includes filling two Bioenvision board seats, augmenting "key management positions" and terminating the Genzyme sub-license to clofarabine in North America.

SCO also recommended the company consider an exit through partnerships or a possible auction or sales process, according to a schedule 13D filing with the Securities and Exchange Commission.

"Again, we applaud Bioenvision's common shareholders for flatly rejecting the inadequate $5.60 tender offer from Genzyme. We believe that the aforementioned framework of a strategic plan will more fully realize the value of Bioenvision and its clofarabine asset for our fellow common shareholders," SCO chairman and managing member Steven H. Rouhandeh said in his letter to Bioenvision's board.

SCO owns 7,209,331 shares of Bioenvision, or 13.4% of the company's stock.

As previously reported, Bioenvision's proposed acquisition by Genzyme was valued at about $345 million and had been expected to close in July. The deal would have given Genzyme exclusive, worldwide rights to clofarabine, which was co-developed by Bioenvision and Genzyme for the treatment of acute lymphoblastic leukemia.

Bioenvision is a New York biopharmaceutical company, and Genzyme is a Cambridge, Mass.-based biotechnology company.

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