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Genzyme Expands its Research and Manufacturing Presence in Massachusetts


October 5, 2005, Starts Construction of State-of-the-Art Science Building in Framingham

Genzyme Corp. (Nasdaq:GENZ) announced today the start of construction on an innovative new science building that is a signature component of a $210 million investment the company is making in its Massachusetts research and manufacturing operations. This includes the construction of a new research facility in Waltham and a major expansion of the company’s flagship protein manufacturing facility in Allston.

“We are making this investment to support our rapid growth, to ensure we can supply our products to patients around the world, and to advance future research and development,” said Henri A. Termeer, Genzyme’s chairman and chief executive officer.

Science Building

The new building at 49 New York Avenue in Framingham, Mass., will incorporate innovative design strategies similar to those in the company’s landmark headquarters, Genzyme Center. The 177,000 square foot building, which is scheduled to open in early 2007, will feature an environmentally responsible and employee-friendly design. It will house early stage scientific research and bring together many Genzyme scientists.

Offices and labs will be connected by open meeting spaces around the six-story building’s central atrium. Researchers who work in related areas will be grouped together, and their offices will be separated by glass walls and sliding glass doors.

“The most productive interaction in science is casual and spontaneous,” said Rich Gregory, Genzyme’s head of research. “The collaborative atmosphere of this building will foster those types of communications and enhance relationships among groups.”

As part of this project, Genzyme is participating in the Labs21 program, sponsored by the U.S. Environmental Protection Agency. The goal of the program is to improve the environmental performance of U.S. laboratories. The building’s green features include a sophisticated heating and cooling system, high-efficiency fume hoods for researchers, low-flow water fixtures and plantings that require minimal watering. The extensive use of glass will reduce electricity needs by allowing a large amount of natural light inside.

The project also includes a separate central utilities building that will provide utilities such as steam and chilled water to the new building, and to three existing Genzyme buildings in Framingham. These utilities are used for heating and cooling, as well as for production processes. Genzyme expects that the central utilities building will reduce energy consumption because the new boilers and chillers will be more efficient than the existing ones.

Genzyme also is seeking to establish the building as the first scientific research laboratory to receive certification under the U.S. Green Building Council’s LEED® (Leadership in Energy and Environmental Design) Green Building Rating SystemTM. Genzyme intends to register the project for certification under the LEED system, which was created to define “green” building by providing a common standard of measurement.

When the Framingham science building opens in early 2007, about 245 employees will occupy the first four floors. Some research teams located in other sites in Framingham will move into the new building and those sites will be re-utilized for other R&D groups. To allow room for later growth, the fifth and sixth floors will be left undeveloped initially, with the exception of a cafeteria on the sixth. When all six floors are full, the building will hold approximately 350 employees and serve the science organization’s Massachusetts laboratory needs through 2010.

The architect for the project is ARC/Architectural Resources Cambridge Inc., the engineer is Bard, Rao & Athanas Consulting Engineers Inc. and the contractor is Bovis Lend Lease LMB Inc. The total cost of the building is estimated to be $124 million. This cost includes not only construction but also architecture, engineering, legal and consulting fees; land acquisition costs; building permits; information technology and security; and furniture, fixtures and equipment.

Genzyme’s roots in Framingham date back to 1981, when Integrated Genetics Inc. established operations in the town. Genzyme merged with Integrated Genetics in 1989, and has continued to expand its presence in Framingham since then. Currently, Genzyme’s operations there include 12 buildings, more than 700,000 square feet and about 1,400 employees.

Polymer and Small-Molecule Drug Research Facility
Genzyme is building a new research facility in Waltham, and planning to expand its existing facility there to consolidate all research activity on small-molecule and polymer drugs. One of Genzyme’s leading products, Renagel® (sevelamer hydrochloride), for patients with end-stage kidney disease, was developed in Waltham, as was WelChol® (colesevelam hydrochloride), which is used to control LDL cholesterol. A key product in clinical development, tolevamer sodium, an investigational polymer therapy for patients with Clostridium difficile associated diarrhea, was also developed at Genzyme’s Waltham facility.

The Waltham project is registered with the Labs21 program and the new building is designed to be highly energy efficient. This expansion will allow the site to grow from 150 employees today to 275 over the next five years. The total cost of this project is estimated to be $33.5 million.

Allston Plant Expansion
Genzyme is in the process of completing a $53 million expansion within its Allston Landing cell-culture manufacturing facility, which will increase manufacturing capacity at the site by 50 percent and allow for cell-culture and purification of three products simultaneously. The purpose of the expansion is to prepare for the introduction of Myozyme® (alglucosidase alfa). Genzyme is developing Myozyme for the treatment of Pompe disease, a debilitating and often fatal muscle disorder resulting from an inherited enzyme deficiency. Genzyme has filed marketing applications for Myozyme in the U.S. and Europe, and expects to file applications in Japan and other countries later this year. Genzyme anticipates approvals of Myozyme beginning early next year.

Two of Genzyme’s major products are currently produced at Allston: Cerezyme® (imiglucerase for injection), an enzyme replacement therapy for Type 1 Gaucher disease and Fabrazyme® (agalsidase beta), an enzyme replacement therapy for Fabry disease. Genzyme also performs the filling and finishing for Thyrogen® (thyrotropin alfa for injection) and for Aldurazyme® (laronidase) at Allston. Thyrogen is a diagnostic used in the screening of patients who have had thyroid cancer. Aldurazyme is an enzyme replacement therapy for mucopolysaccharidosis I (MPS I), which, like Pompe, Gaucher and Fabry diseases, belongs to a group of more than 40 rare genetic diseases called lysosomal storage disorders.

Genzyme is also planning to build a 1.5 megawatt cogeneration plant at Allston, which will produce 100 percent of the facility’s steam needs and 75 percent of its electricity needs. Genzyme estimates that construction on the plant will begin in August 2006 and will be completed by the end of 2008.

In late 2003, Genzyme opened its new corporate headquarters, Genzyme Center, in Cambridge. The $140 million building recently earned the highest rating from the U.S. Green Building Council.

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. Founded in 1981, Genzyme has grown from a small start-up to a diversified enterprise with more than 7,600 employees in locations spanning the globe and 2004 revenues of $2.2 billion. 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 regarding Genzyme’s facility expansions in Framingham, Allston and Waltham, including the intended use for such facilities, expected manufacturing capacity increases and estimated costs, as well as our plans and timeframes for submitting and receiving marketing authorization from various regulatory authorities for Myozyme. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in these forward-looking statements, including the actual timing and content of submissions to and decisions made by the EU, US and Japanese regulatory authorities regarding the marketing authorization applications for Myozyme, Genzyme’s ability to complete the expansions on the projected timeframes or at all, and Genzyme’s ability to complete the projects on budget and to obtain the expected benefits. Many of the risks and uncertainties applicable to Genzyme’s operations are described in reports filed with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended, including without limitation the information 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 ended June 30, 2005. 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®, Renagel®, Myozyme®, Cerezyme®, Fabrazyme®, Thyrogen® and Aldurazyme® are registered trademarks of Genzyme Corporation. WelChol® is a registered trademark of Sankyo Pharma, Inc. All rights reserved.


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