Genzyme Buys a Bigger Presence in Oncology

Two recent acquisition bids by Genzyme Corp. have suddenly amplified the company's presence in cancer. By now, the biotech that made its bones in treatments for rare disorders has spread out into so many areas of health care that it's sometimes described as a mini Johnson & Johnson . Oncology has been among those interests for seven years, beginning when it acquired cancer genomics company PharmaGenics, and formed Genzyme Molecular Oncology [See Deal]. As part of Genzyme's attempts to get high-risk research off its P&L, while giving investors a chance for a bigger payoff from any significant success, this business and others at Genzyme, was issued its own tracking stock (GZMO). But investors never took to the idea, and so Genzyme eventually took back all of its tracking stocks.

Now, Genzyme is making cancer central to its future. At the end of February, Genzyme announced that it would trade...