Genzyme Molecular Oncology Reports First Quarter 2001 Financial Results

Apr 19, 2001, 01:00 ET from Genzyme Molecular Oncology

    FRAMINGHAM, Mass., April 19 /PRNewswire/ -- Genzyme Corp. today reported
 that total revenues for Genzyme Molecular Oncology (Nasdaq:   GZMO) for the
 first quarter of 2001 were $1.4 million, down from $2.6 million in the first
 quarter of 2000.  Revenues for the first quarter of 2001 are attributable
 primarily to the Purdue Pharma antigen discovery collaboration and three new
 diagnostic licensing agreements, while revenues in the first quarter of 2000
 are primarily due to a product development milestone payment from
 Schering-Plough Ltd.
     Expenditures on research and development for the first quarter of 2001
 increased to $5.7 million, up from $4.1 million in the first quarter of 2000.
 The increase is due to the expansion of Genzyme Molecular Oncology's cancer
 vaccine clinical trials from two to five and to increased activity in its
 antigen discovery and antiangiogenesis programs.
     Net loss for the first quarter of 2001 was $6.3 million, or $0.39 per
 share, compared to a net loss of $5.1 million, or $0.37 per share for the
 first quarter of 2000.
     "We are making rapid progress with our plans for initiating at least three
 cancer vaccine clinical trials this year and expect to complete enrollment in
 our five current clinical trials by year-end," said Gail Maderis, president,
 Genzyme Molecular Oncology.  "Our antigen discovery program continues to move
 successfully forward and we are on track to complete a significant product
 development and discovery collaboration later this year."
     Genzyme Molecular Oncology ended the quarter with $23.0 million in cash
 and marketable securities, and also has access to a $15.0 million financing
 arrangement with Genzyme General and additional credit through Genzyme
 Corporation's revolving credit facility.
 
     Cancer Diagnostic Licensing
     Genzyme Molecular Oncology continues to leverage the value of its
 intellectual property to help fund its research and development efforts.  In
 the first quarter of 2001, Genzyme Molecular Oncology entered into three
 licensing agreements that provide non-exclusive access to its colon cancer
 diagnostic patent rights related to the MSH2 and APC genes.  Mutations in
 either of these genes indicate increased risk for developing certain colon
 cancers.
     Quest Diagnostics (NYSE:   DGX), Specialty Laboratories (NYSE:   SP), and Mayo
 Medical Laboratories have been granted non-exclusive colon cancer diagnostic
 rights to one or both of these genes for use in diagnostic testing services
 that detect increased risk for certain colon cancers.  This brings Genzyme
 Molecular Oncology's total diagnostic licensee base to ten and includes nearly
 all of the major genetic testing laboratories.  Under each of the agreements,
 Genzyme Molecular Oncology received an up front license fee and will receive
 royalties on each diagnostic test performed.
     Genzyme Molecular Oncology is positioned where the power and promise of
 genomics and biotechnology meet.  It is utilizing its powerful proprietary
 functional genomics and antigen discovery technology platforms to develop
 novel cancer products focused on cancer vaccines and angiogenesis inhibitors
 and to generate partnering revenue.  It is shaping these new therapies through
 the integration of its genomics, gene and cell therapy, small-molecule drug
 discovery, and protein therapeutic capabilities.  Genzyme Molecular Oncology
 is a division of Genzyme Corporation.
     This press release contains forward-looking statements, including
 statements regarding the initiation of three additional cancer vaccine
 clinical trials, completing enrollment in all of Genzyme Molecular Oncology's
 ongoing clinical trials by year-end, completing a significant product
 development and discovery collaboration by year-end, and the receipt of
 royalties from its diagnostics licensees.  Actual results may differ
 materially based on a number of factors, including the timing and content of
 decisions made by the FDA and other regulatory authorities, the ability to
 enroll patients in clinical trials, the ability to identify new business
 opportunities and execute definitive agreements with potential collaborators,
 and the number of diagnostic tests performed by Genzyme Molecular Oncology's
 licensees. Further, because Genzyme Molecular Oncology stock is a series of
 common stock of Genzyme Corporation, holders of Genzyme Molecular Oncology
 stock are subject to all of the risks and uncertainties described in reports
 filed by Genzyme with the SEC under the Securities Exchange Act of 1934, as
 amended, including without limitation Exhibit 99.2 to Genzyme's 2000 Annual
 Report on Form 10-K.
 
     Genzyme(R) is a registered trademark of Genzyme Corporation.  All rights
 reserved.
 
     CONFERENCE CALL
     Genzyme Molecular Oncology's first quarter earnings conference call will
 be broadcast live on the Internet at 1:00 p.m. EDT today at
 www.genzyme.com/ir/events.htm. To listen to the call, you need RealPlayer and
 a computer equipped with speakers and a sound card.  You can download
 RealPlayer at the conference call site.  A replay of the call will be
 available until midnight on April 26.
 
     Investors can listen to the conference call live by dialing 212-346-0281
 beginning at 12:50 p.m. EDT today.  A replay of the conference call will be
 available from 3:00 p.m. EDT today through midnight EDT April 26 by dialing 1-
 800-633-8284 in the United States or 1-858-812-6440 elsewhere.  Refer to
 reservation number 18296014.
 
     Genzyme's releases are on the World Wide Web at http://www.genzyme.com.
 They are also available from Genzyme's fax-on-demand service at 1-800-436-1443
 within the United States or 1-201-521-1080 outside the United States.
 
     UPCOMING EVENTS
     Genzyme Corporation will broadcast its Annual Shareholders' Meeting live
 over the Internet on Thursday, May 31 beginning at 2:00 p.m. EDT. To access
 the Webcast, please refer to www.genzyme.com/ir/events.htm.
 
     Genzyme Corporation will report second-quarter earnings results on July 19
 for Genzyme General (Nasdaq:   GENZ), Genzyme Molecular Oncology (Nasdaq:   GZMO)
 and Genzyme Biosurgery (Nasdaq:   GZBX).  Conference calls to discuss these
 results will follow.  If you wish to participate in the calls, please dial the
 following numbers:  for Genzyme General, dial 212-346-0294 at 11:00 a.m. EDT;
 for Genzyme Molecular Oncology, dial 212-346-0281 at 1:00 p.m. EDT; and for
 Genzyme Biosurgery, dial 212-346-7440 at 3:00 p.m. EDT.   To access the
 Webcast of these conference calls, please refer to
 www.genzyme.com/ir/events.htm.
 
     CONTACT:
     Media: Elizabeth Heller, 617-761-8419
     Investor: Kristen Nally, 617-252-7815
 
     GENZYME MOLECULAR ONCOLOGY (A Division of Genzyme Corporation)
 
  Combined Statements of Operations                     Three Months Ended
 (Amounts in thousands, except per share data)               March 31,
                                                        2001      2000
 
     Total revenues                                   $ 1,412        $ 2,555
 
 
     Operating costs and expenses:
      Cost of revenues                                    544             56
      Selling, general and administrative               1,891          1,190
      Research and development                          5,661          4,058
      Amortization of intangibles                           -          2,956
        Total operating costs and expenses              8,096          8,260
 
 
     Operating loss                                   (6,684)        (5,705)
 
 
     Other income (expenses):
      Interest income                                     423             73
      Interest expense                                   (13)           (87)
        Total other income (expenses)                     410           (14)
 
 
     Loss before income taxes                         (6,274)        (5,719)
     Tax benefit                                            -            662
     Division net loss                               $(6,274)       $(5,057)
 
 
     Net loss per share of Molecular Oncology
      Stock-basic and diluted                         $(0.39)        $(0.37)
 
 
     Weighted average shares outstanding               15,907         13,495
 
 
 
 
     Condensed Combined Balance Sheets              March 31,     December 31,
     (In thousands)                                      2001           2000
 
 
     Cash and all marketable securities               $23,037        $30,151
     Other current assets                                 272            357
     Equipment, net                                       213            244
     Intangibles, net                                       -              -
        Total assets                                  $23,522        $30,752
 
 
     Current liabilities                              $ 8,376        $ 8,408
     Noncurrent liabilities                             1,724          2,818
     Division equity                                   13,422         19,526
        Total liabilities and division equity         $23,522        $30,752
 
 
 GENZYME CORPORATION
       Consolidated Statements of
       Operations
       (Amounts in thousands, except per
       share amounts)
                                                      Three Months Ended
                                                            March 31,
                                                     2001              2000
 
       Total revenues                              $278,261          $208,130
 
       Operating costs and expenses:
       Cost of products and services sold            89,953            60,110
       Selling, general and administrative           91,113            61,551
       Research and development                      57,110            55,699
       Amortization of intangibles                   28,991             6,098
       Total operating costs and expenses           267,167           183,458
 
       Operating income                              11,094            24,672
 
       Other income (expenses):
       Equity in net loss of
        unconsolidated affiliates                    (9,015)           (8,133)
       Gain on affiliate sale of stock                   --            20,270
       Minority interest                              1,274               856
       Other                                         (3,710)                2
       Investment income                             10,147             9,944
       Interest expense                             (11,370)           (3,939)
 
       Total other income (expenses)                (12,674)           19,000
 
       Income (loss) before income taxes             (1,580)           43,672
       Provision for income taxes                       670           (11,854)
       Net income (loss) before cumulative
        effect of change in
        accounting for derivative
        financial instruments                          (910)           31,818
 
       Cumulative effect of change in
        accounting for derivative
        financial instruments, net of tax (1)         4,167                --
       Net income                                    $3,257           $31,818
 
       Net income (loss) per share:
        Allocated to Genzyme General
         Stock:
       Net income before cumulative effect
        of change in accounting
        for derivative financial
        instruments                                 $25,145           $45,309
       Cumulative effect of change in
        accounting for derivative
        financial instruments, net of tax (1)
                                                      4,167                --
       Genzyme General net income                    29,312            45,309
       Tax benefit allocated from Genzyme
        Biosurgery                                    8,116             5,232
       Tax benefit allocated from Genzyme
        Molecular Oncology                            2,826             1,096
       Net income allocated to Genzyme
        General Stock                               $40,254           $51,637
 
       Net income per share of Genzyme
        General Stock:
         Basic:
           Net income per share before
            cumulative effect of change in
            accounting for derivative
            financial instruments                     $0.38             $0.61
           Per share cumulative effect of
            change in accounting for
            derivative financial
            instruments, net of tax (1)                0.04               --
           Net income per share allocated
            to Genzyme General Stock                  $0.42             $0.61
 
         Diluted (2):
           Net income per share before
            cumulative effect of change in
            accounting for derivative
            financial instruments                     $0.36             $0.57
           Per share cumulative effect of
            change in accounting for
            derivative financial
            instruments, net of tax (1)                0.04                --
           Net income per share allocated
            to Genzyme General Stock                  $0.40             $0.57
 
         Weighted average shares
          outstanding:
            Basic                                    95,875            84,502
 
         Diluted (2)                                100,400            94,726
 
 
 
       GENZYME CORPORATION
                                                        Three Months Ended
                                                             March 31,
                                                      2001              2000
       Net income (loss) per share
        (continued):
        Allocated to Biosurgery Stock (3):
          Genzyme Biosurgery division net
           loss                                    $(35,327)
          Tax benefit allocation                      4,604
          Net loss allocated to Biosurgery
           Stock                                   $(30,723)
 
         Net loss per share of Biosurgery
          Stock-basic and diluted
                                                     $(0.84)
 
         Weighted average shares
          outstanding                                36,403
 
        Allocated to Molecular Oncology
         Stock:
         Net loss                                   $(6,274)          $(5,057)
 
         Net loss per share of Molecular
          Oncology Stock-basic and diluted
                                                     $(0.39)           $(0.37)
 
         Weighted average shares
          outstanding                                15,907            13,495
 
        Allocated to Surgical Products
         Stock (3):
         Net loss                                                    $(10,043)
 
         Net loss per share of Surgical
          Products Stock-basic and diluted
                                                                       $(0.68)
 
         Weighted average shares
          outstanding                                                  14,855
 
       Allocated to Tissue Repair Stock
        (3):
         Net loss                                                     $(4,971)
 
         Net loss per share of Tissue
          Repair Stock-basic and diluted
                                                                       $(0.17)
 
         Weighted average shares
          outstanding                                                  28,531
 
 
       (1)  Represents a transition adjustment for the 1/1/01 required
       adoption of SFAS 133 to record the fair value of certain derivative
       assets held on 1/1/01.
       (2)  Net income per share allocated to Genzyme General Stock on a
       diluted basis and weighted average shares-diluted excludes
       the dilutive effect of the convertible subordinated notes and
       debentures allocated to Genzyme General as the effect
       would be anti-dilutive.
       (3)  On December 18, 2000, we acquired Biomatrix. Inc. and created
       Genzyme Biosurgery Division as a new division of Genzyme.
       We re-allocated the businesses of Genzyme Surgical Products and Genzyme
       Tissue Repair and allocated the acquired business
       of Biomatrix to Genzyme Biosurgery.  As a result of the transaction, we
       amended our charter to create Biosurgery Stock
       and eliminate Surgical Products Stock and Tissue Repair Stock.
       Accordingly, losses incurred before December 18, 2000
       have been allocated to Surgical Products Stock and Tissue Repair Stock.
       Losses incurred after December 18, 2000
       have been allocated to Biosurgery Stock.
 
 
 
       Condensed Consolidated Balance
       Sheets                                     March 31,        December 31,
       (In thousands)                                2001              2000
 
       Cash and all marketable securities          $619,614          $639,640
       Other current assets                         458,289           459,952
       Property, plant and equipment (net)          512,386           504,412
       Intangibles (net)                          1,511,123         1,539,782
       Other assets                                 163,622           174,314
       Total assets                              $3,265,034        $3,318,100
 
       Current liabilities                         $230,758          $241,099
       Noncurrent liabilities                       777,157           901,860
       Stockholders' equity                       2,257,119         2,175,141
       Total liabilities and stockholders'
        equity                                   $3,265,034        $3,318,100
 
 

SOURCE Genzyme Molecular Oncology
    FRAMINGHAM, Mass., April 19 /PRNewswire/ -- Genzyme Corp. today reported
 that total revenues for Genzyme Molecular Oncology (Nasdaq:   GZMO) for the
 first quarter of 2001 were $1.4 million, down from $2.6 million in the first
 quarter of 2000.  Revenues for the first quarter of 2001 are attributable
 primarily to the Purdue Pharma antigen discovery collaboration and three new
 diagnostic licensing agreements, while revenues in the first quarter of 2000
 are primarily due to a product development milestone payment from
 Schering-Plough Ltd.
     Expenditures on research and development for the first quarter of 2001
 increased to $5.7 million, up from $4.1 million in the first quarter of 2000.
 The increase is due to the expansion of Genzyme Molecular Oncology's cancer
 vaccine clinical trials from two to five and to increased activity in its
 antigen discovery and antiangiogenesis programs.
     Net loss for the first quarter of 2001 was $6.3 million, or $0.39 per
 share, compared to a net loss of $5.1 million, or $0.37 per share for the
 first quarter of 2000.
     "We are making rapid progress with our plans for initiating at least three
 cancer vaccine clinical trials this year and expect to complete enrollment in
 our five current clinical trials by year-end," said Gail Maderis, president,
 Genzyme Molecular Oncology.  "Our antigen discovery program continues to move
 successfully forward and we are on track to complete a significant product
 development and discovery collaboration later this year."
     Genzyme Molecular Oncology ended the quarter with $23.0 million in cash
 and marketable securities, and also has access to a $15.0 million financing
 arrangement with Genzyme General and additional credit through Genzyme
 Corporation's revolving credit facility.
 
     Cancer Diagnostic Licensing
     Genzyme Molecular Oncology continues to leverage the value of its
 intellectual property to help fund its research and development efforts.  In
 the first quarter of 2001, Genzyme Molecular Oncology entered into three
 licensing agreements that provide non-exclusive access to its colon cancer
 diagnostic patent rights related to the MSH2 and APC genes.  Mutations in
 either of these genes indicate increased risk for developing certain colon
 cancers.
     Quest Diagnostics (NYSE:   DGX), Specialty Laboratories (NYSE:   SP), and Mayo
 Medical Laboratories have been granted non-exclusive colon cancer diagnostic
 rights to one or both of these genes for use in diagnostic testing services
 that detect increased risk for certain colon cancers.  This brings Genzyme
 Molecular Oncology's total diagnostic licensee base to ten and includes nearly
 all of the major genetic testing laboratories.  Under each of the agreements,
 Genzyme Molecular Oncology received an up front license fee and will receive
 royalties on each diagnostic test performed.
     Genzyme Molecular Oncology is positioned where the power and promise of
 genomics and biotechnology meet.  It is utilizing its powerful proprietary
 functional genomics and antigen discovery technology platforms to develop
 novel cancer products focused on cancer vaccines and angiogenesis inhibitors
 and to generate partnering revenue.  It is shaping these new therapies through
 the integration of its genomics, gene and cell therapy, small-molecule drug
 discovery, and protein therapeutic capabilities.  Genzyme Molecular Oncology
 is a division of Genzyme Corporation.
     This press release contains forward-looking statements, including
 statements regarding the initiation of three additional cancer vaccine
 clinical trials, completing enrollment in all of Genzyme Molecular Oncology's
 ongoing clinical trials by year-end, completing a significant product
 development and discovery collaboration by year-end, and the receipt of
 royalties from its diagnostics licensees.  Actual results may differ
 materially based on a number of factors, including the timing and content of
 decisions made by the FDA and other regulatory authorities, the ability to
 enroll patients in clinical trials, the ability to identify new business
 opportunities and execute definitive agreements with potential collaborators,
 and the number of diagnostic tests performed by Genzyme Molecular Oncology's
 licensees. Further, because Genzyme Molecular Oncology stock is a series of
 common stock of Genzyme Corporation, holders of Genzyme Molecular Oncology
 stock are subject to all of the risks and uncertainties described in reports
 filed by Genzyme with the SEC under the Securities Exchange Act of 1934, as
 amended, including without limitation Exhibit 99.2 to Genzyme's 2000 Annual
 Report on Form 10-K.
 
     Genzyme(R) is a registered trademark of Genzyme Corporation.  All rights
 reserved.
 
     CONFERENCE CALL
     Genzyme Molecular Oncology's first quarter earnings conference call will
 be broadcast live on the Internet at 1:00 p.m. EDT today at
 www.genzyme.com/ir/events.htm. To listen to the call, you need RealPlayer and
 a computer equipped with speakers and a sound card.  You can download
 RealPlayer at the conference call site.  A replay of the call will be
 available until midnight on April 26.
 
     Investors can listen to the conference call live by dialing 212-346-0281
 beginning at 12:50 p.m. EDT today.  A replay of the conference call will be
 available from 3:00 p.m. EDT today through midnight EDT April 26 by dialing 1-
 800-633-8284 in the United States or 1-858-812-6440 elsewhere.  Refer to
 reservation number 18296014.
 
     Genzyme's releases are on the World Wide Web at http://www.genzyme.com.
 They are also available from Genzyme's fax-on-demand service at 1-800-436-1443
 within the United States or 1-201-521-1080 outside the United States.
 
     UPCOMING EVENTS
     Genzyme Corporation will broadcast its Annual Shareholders' Meeting live
 over the Internet on Thursday, May 31 beginning at 2:00 p.m. EDT. To access
 the Webcast, please refer to www.genzyme.com/ir/events.htm.
 
     Genzyme Corporation will report second-quarter earnings results on July 19
 for Genzyme General (Nasdaq:   GENZ), Genzyme Molecular Oncology (Nasdaq:   GZMO)
 and Genzyme Biosurgery (Nasdaq:   GZBX).  Conference calls to discuss these
 results will follow.  If you wish to participate in the calls, please dial the
 following numbers:  for Genzyme General, dial 212-346-0294 at 11:00 a.m. EDT;
 for Genzyme Molecular Oncology, dial 212-346-0281 at 1:00 p.m. EDT; and for
 Genzyme Biosurgery, dial 212-346-7440 at 3:00 p.m. EDT.   To access the
 Webcast of these conference calls, please refer to
 www.genzyme.com/ir/events.htm.
 
     CONTACT:
     Media: Elizabeth Heller, 617-761-8419
     Investor: Kristen Nally, 617-252-7815
 
     GENZYME MOLECULAR ONCOLOGY (A Division of Genzyme Corporation)
 
  Combined Statements of Operations                     Three Months Ended
 (Amounts in thousands, except per share data)               March 31,
                                                        2001      2000
 
     Total revenues                                   $ 1,412        $ 2,555
 
 
     Operating costs and expenses:
      Cost of revenues                                    544             56
      Selling, general and administrative               1,891          1,190
      Research and development                          5,661          4,058
      Amortization of intangibles                           -          2,956
        Total operating costs and expenses              8,096          8,260
 
 
     Operating loss                                   (6,684)        (5,705)
 
 
     Other income (expenses):
      Interest income                                     423             73
      Interest expense                                   (13)           (87)
        Total other income (expenses)                     410           (14)
 
 
     Loss before income taxes                         (6,274)        (5,719)
     Tax benefit                                            -            662
     Division net loss                               $(6,274)       $(5,057)
 
 
     Net loss per share of Molecular Oncology
      Stock-basic and diluted                         $(0.39)        $(0.37)
 
 
     Weighted average shares outstanding               15,907         13,495
 
 
 
 
     Condensed Combined Balance Sheets              March 31,     December 31,
     (In thousands)                                      2001           2000
 
 
     Cash and all marketable securities               $23,037        $30,151
     Other current assets                                 272            357
     Equipment, net                                       213            244
     Intangibles, net                                       -              -
        Total assets                                  $23,522        $30,752
 
 
     Current liabilities                              $ 8,376        $ 8,408
     Noncurrent liabilities                             1,724          2,818
     Division equity                                   13,422         19,526
        Total liabilities and division equity         $23,522        $30,752
 
 
 GENZYME CORPORATION
       Consolidated Statements of
       Operations
       (Amounts in thousands, except per
       share amounts)
                                                      Three Months Ended
                                                            March 31,
                                                     2001              2000
 
       Total revenues                              $278,261          $208,130
 
       Operating costs and expenses:
       Cost of products and services sold            89,953            60,110
       Selling, general and administrative           91,113            61,551
       Research and development                      57,110            55,699
       Amortization of intangibles                   28,991             6,098
       Total operating costs and expenses           267,167           183,458
 
       Operating income                              11,094            24,672
 
       Other income (expenses):
       Equity in net loss of
        unconsolidated affiliates                    (9,015)           (8,133)
       Gain on affiliate sale of stock                   --            20,270
       Minority interest                              1,274               856
       Other                                         (3,710)                2
       Investment income                             10,147             9,944
       Interest expense                             (11,370)           (3,939)
 
       Total other income (expenses)                (12,674)           19,000
 
       Income (loss) before income taxes             (1,580)           43,672
       Provision for income taxes                       670           (11,854)
       Net income (loss) before cumulative
        effect of change in
        accounting for derivative
        financial instruments                          (910)           31,818
 
       Cumulative effect of change in
        accounting for derivative
        financial instruments, net of tax (1)         4,167                --
       Net income                                    $3,257           $31,818
 
       Net income (loss) per share:
        Allocated to Genzyme General
         Stock:
       Net income before cumulative effect
        of change in accounting
        for derivative financial
        instruments                                 $25,145           $45,309
       Cumulative effect of change in
        accounting for derivative
        financial instruments, net of tax (1)
                                                      4,167                --
       Genzyme General net income                    29,312            45,309
       Tax benefit allocated from Genzyme
        Biosurgery                                    8,116             5,232
       Tax benefit allocated from Genzyme
        Molecular Oncology                            2,826             1,096
       Net income allocated to Genzyme
        General Stock                               $40,254           $51,637
 
       Net income per share of Genzyme
        General Stock:
         Basic:
           Net income per share before
            cumulative effect of change in
            accounting for derivative
            financial instruments                     $0.38             $0.61
           Per share cumulative effect of
            change in accounting for
            derivative financial
            instruments, net of tax (1)                0.04               --
           Net income per share allocated
            to Genzyme General Stock                  $0.42             $0.61
 
         Diluted (2):
           Net income per share before
            cumulative effect of change in
            accounting for derivative
            financial instruments                     $0.36             $0.57
           Per share cumulative effect of
            change in accounting for
            derivative financial
            instruments, net of tax (1)                0.04                --
           Net income per share allocated
            to Genzyme General Stock                  $0.40             $0.57
 
         Weighted average shares
          outstanding:
            Basic                                    95,875            84,502
 
         Diluted (2)                                100,400            94,726
 
 
 
       GENZYME CORPORATION
                                                        Three Months Ended
                                                             March 31,
                                                      2001              2000
       Net income (loss) per share
        (continued):
        Allocated to Biosurgery Stock (3):
          Genzyme Biosurgery division net
           loss                                    $(35,327)
          Tax benefit allocation                      4,604
          Net loss allocated to Biosurgery
           Stock                                   $(30,723)
 
         Net loss per share of Biosurgery
          Stock-basic and diluted
                                                     $(0.84)
 
         Weighted average shares
          outstanding                                36,403
 
        Allocated to Molecular Oncology
         Stock:
         Net loss                                   $(6,274)          $(5,057)
 
         Net loss per share of Molecular
          Oncology Stock-basic and diluted
                                                     $(0.39)           $(0.37)
 
         Weighted average shares
          outstanding                                15,907            13,495
 
        Allocated to Surgical Products
         Stock (3):
         Net loss                                                    $(10,043)
 
         Net loss per share of Surgical
          Products Stock-basic and diluted
                                                                       $(0.68)
 
         Weighted average shares
          outstanding                                                  14,855
 
       Allocated to Tissue Repair Stock
        (3):
         Net loss                                                     $(4,971)
 
         Net loss per share of Tissue
          Repair Stock-basic and diluted
                                                                       $(0.17)
 
         Weighted average shares
          outstanding                                                  28,531
 
 
       (1)  Represents a transition adjustment for the 1/1/01 required
       adoption of SFAS 133 to record the fair value of certain derivative
       assets held on 1/1/01.
       (2)  Net income per share allocated to Genzyme General Stock on a
       diluted basis and weighted average shares-diluted excludes
       the dilutive effect of the convertible subordinated notes and
       debentures allocated to Genzyme General as the effect
       would be anti-dilutive.
       (3)  On December 18, 2000, we acquired Biomatrix. Inc. and created
       Genzyme Biosurgery Division as a new division of Genzyme.
       We re-allocated the businesses of Genzyme Surgical Products and Genzyme
       Tissue Repair and allocated the acquired business
       of Biomatrix to Genzyme Biosurgery.  As a result of the transaction, we
       amended our charter to create Biosurgery Stock
       and eliminate Surgical Products Stock and Tissue Repair Stock.
       Accordingly, losses incurred before December 18, 2000
       have been allocated to Surgical Products Stock and Tissue Repair Stock.
       Losses incurred after December 18, 2000
       have been allocated to Biosurgery Stock.
 
 
 
       Condensed Consolidated Balance
       Sheets                                     March 31,        December 31,
       (In thousands)                                2001              2000
 
       Cash and all marketable securities          $619,614          $639,640
       Other current assets                         458,289           459,952
       Property, plant and equipment (net)          512,386           504,412
       Intangibles (net)                          1,511,123         1,539,782
       Other assets                                 163,622           174,314
       Total assets                              $3,265,034        $3,318,100
 
       Current liabilities                         $230,758          $241,099
       Noncurrent liabilities                       777,157           901,860
       Stockholders' equity                       2,257,119         2,175,141
       Total liabilities and stockholders'
        equity                                   $3,265,034        $3,318,100
 
 SOURCE  Genzyme Molecular Oncology