Breaking News: Genzyme To Sell Genetic Testing Unit for $925M

Genzyme, the beleaguered Cambridge biotech firm trying to fight off a takeover bid, will sell its genetic testing division to Lab Corp. of America Holdings for $925 million, The Boston Globe reports.

Genzyme's genetic testing business unit operates nine laboratories in the United States, including one in Westborough that employs 500 people, a Genzyme spokeswoman said. The purchase agreement calls for North Carolina-based LabCorp to buy those facilities along with the business, she added.

In 2009, the genetic testing business had revenues of $371 million, said Genzyme, which had total 2009 revenues of $4.5 billion.

Genzyme recently rejected a takeover offer by French pharmaceutical firm Sanofi-Aventis SA, but apparently France's largest drug maker will not be deterrred. Bloomberg reports that Sanofi has arranged $10 billion in underwritten loans to back its bid.

And closer to home, here's a bit of smart analysis from WBUR's election blog on how Genzyme's troubles could impact the gubernatorial race (specifically, how the company's recent announcement that it would layoff 1,000 employees throws water on Gov. Patrick's Life Sciences Initiative.)