CAMBRIDGE, Mass., Oct. 30 /PRNewswire-FirstCall/ -- Genzyme Corp.
(Nasdaq: GENZ) today announced that it will work with the Centers for
Medicare and Medicaid Services (CMS), government officials and, if
necessary, through legal channels to dispute a CMS decision to group all
viscosupplementation products into a single reimbursement code. This
decision specifically impacts Synvisc(R) (hylan G-F 20), Genzyme's
market-leading viscosupplement used to treat pain due to osteoarthritis of
the knee, which has had its own reimbursement code since 1999. If
unchanged, the effect of CMS's decision will be to reduce the reimbursement
rate for Synvisc below its current market price, thereby discouraging
doctors and patients from using the market leader in viscosupplements.
"We strongly disagree with this decision by CMS," stated Ann
Merrifield, president of Genzyme Biosurgery, the division of Genzyme Corp.
that manufactures and markets Synvisc and other biomaterial products. "We
believe that a single code for reimbursement unfairly compromises patients,
limits physician choice, and imposes an undue financial burden on the
Medicare system."
Genzyme officials stated that there are clear clinical benefits of
Synvisc that are not shared by other viscosupplementation products, such as
its well-established six months of pain relief from only three injections.
Synvisc's chemical and physical properties also are different. These
include a higher molecular weight that contributes to a longer residence
time in the joint.
The CMS decision is likely to result in inequitable reimbursement for
all viscosupplementation products that also adds significant costs to both
patients and the Medicare program. Creating financial incentives for
physicians to use products that require a greater number of treatment
injections, or result in shorter periods of pain relief, is not in the best
interest of patients and will ultimately be more costly to the Medicare
system.
"This change also stifles innovation," added Merrifield. "For this
product class, companies should be encouraged to develop therapies that
have increased duration of pain relief with fewer injections. The CMS
decision runs contrary to this clinical goal by supporting the development
of products that require more injections."
Genzyme plans to pursue this issue directly with CMS and other
government officials, and will take legal action if necessary. The company
notes that Synvisc coding, coverage and payment will remain the same until
January of 2007.
About Genzyme
One of the world's leading biotechnology companies, Genzyme is
dedicated to making a major positive impact on the lives of people with
serious diseases. This year marks the 25th anniversary of Genzyme's
founding. Since 1981, the company has grown from a small start-up to a
diversified enterprise with more than 8,500 employees in locations spanning
the globe and 2005 revenues of $2.7 billion. Genzyme has been selected by
FORTUNE as one of the "100 Best Companies to Work for" in the United
States.
With many established products and services helping patients in more
than 80 countries, Genzyme is a leader in the effort to develop and apply
the most advanced technologies in the life sciences. The company's products
and services are focused on rare inherited disorders, kidney disease,
orthopaedics, cancer, transplant and immune diseases, and diagnostic
testing. Genzyme's commitment to innovation continues today with a
substantial development program focused on these fields, as well as heart
disease and other areas of unmet medical need.
This press release contains forward-looking statements, including the
statements regarding Genzyme's efforts to reverse the coding decision by
CMS and those regarding the future impact of CMS's decision if not
reversed. These statements are subject to risks and uncertainties that
could cause actual results to differ materially from those projected in
these forward- looking statements. These risks and uncertainties include,
among others, how Synvisc's customers and competitors react to the decision
by CMS if not reversed, and the risks and uncertainties described in
reports filed by Genzyme with the Securities and Exchange Commission under
the Securities Exchange Act of 1934, as amended. Please see the discussion
under the heading "Factors Affecting Future Operating Results" in the
Management's Discussion and Analysis of Financial Condition and Results of
Operations section of the Genzyme Quarterly Report on Form 10-Q for the
quarter ending June 30, 2006 for a more complete discussion of these and
other risks. Genzyme cautions investors not to place substantial reliance
on the forward-looking statements contained in this press release. These
statements speak only as of the date of this press release, and Genzyme
undertakes no obligation to update or revise the statements.
Genzyme(R) and Synvisc(R) are registered trademarks of Genzyme
Corporation. All rights reserved.
Genzyme's press releases and other company information are available at
http://www.genzyme.com and by calling Genzyme's investor information line
at 1-800-905-4369 within the United States or 1-703-797-1866 outside the
United States.
Media Contact: Investor Contact:
Maria Cantor Sally Curley
(617) 768-6690 (617) 768-6140
SOURCE Genzyme Corp.
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Related links:
http://www.genzyme.com/
http://www.prnewswire.com/comp/113803.html /
CONTACT:
Media: Maria Cantor, +1-617-768-6690, or
Investors: Sally Curley, +1-617-768-6140, both of Genzyme
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