Genzyme Corp. has proposed to acquire AnorMED, Inc. of Vancouver, British Columbia in an all cash transaction valued at approximately $380 million. AnorMED’s leading late-stage product candidate, Mozobil, in development for hematopoietic stem cell transplantation (HSCT) could improve the viability of HSCT and enlarge the pool of patients for whom transplantation is an option. Enrollment is complete in a Phase III trial for Mozobil in multiple myeloma, and a second Phase III trial in non-Hodgkin’s lymphoma is expected to conclude in late-2006. Mozobil has been granted special protocol assessment and orphan drug status in the U.S. and the EU.

“We believe Mozobil represents an important therapeutic advance in the field of stem cell transplantation, and Genzyme is uniquely positioned to ensure that it reaches its full global potential,” said Henri A. Termeer, chairman and chief executive officer of Genzyme. “Our clinical/regulatory infrastructure will allow us to complete development and registration of Mozobil without delay and at a considerably reduced execution risk; the commercial infrastructure we have developed to support our transplant business unit will allow Mozobil to be made available with reduced incremental investment and delay, and our strong financial position eliminates any capital market and dilution risk.”

“We are in a position to offer AnorMED shareholders full value now for their pioneering efforts to develop Mozobil and enable them to realize an excellent return on their investment,” said Mr. Termeer. “The addition of Mozobil will broaden Genzyme’s transplant business by increasing its presence in hematological transplantation, a large and growing market. Our established transplant and oncology businesses provide a solid platform to launch Mozobil’s growth and drive its adoption in stem cell transplantation procedures throughout the world.”

Mozobil has been shown to rapidly increase the number of stem cells in circulation in the blood, an important step in preparing a patient for a stem cell transplant. Approximately 45,000 stem cell transplants are performed each year in the U.S. and Europe for multiple myeloma, non-Hodgkin’s lymphoma, and other conditions.

Genzyme has been in discussions with AnorMED regarding Mozobil since October 2005, including an acquisition proposal in April 2006.