Genzyme, Hospira reach new drug-packaging deal

By Reuters
Posted July 8, 2010 at 6:42 a.m.

Genzyme Corp., which is attempting to fix quality-control problems involving its top medicines, will have Hospira Inc. fill and package the drugs under a new supply agreement between the two companies, Genzyme said in a regulatory filing .

Genzyme in May agreed to terms of a consent decree with U.S. regulators over its troubled manufacturing plant in Boston, under which it will pay the government $175 million in profits from past sales of certain drugs.

The consent decree requires Genzyme by Nov. 28 to move filling and packaging operations out of the plant for Cerezyme, the company’s treatment for Gaucher disease; Fabrazyme, its treatment for Fabry disease; and Thyrogen, a thyroid drug sold within the United States. The deadline is Aug. 31, 2011 for products sold outside of the United States.

The new agreement replaces prior agreements between Genzyme and Hospira relating to filling and packaging of its drugs, including Cerezyme, Fabrazyme, Thyrogen and Myozyme, for muscle disorder Pompe disease.

Hospira, under the pact, will fill and finish manufacturing services for those medicines, as well as another Pompe disease drug called Lumizyme, Thymoglobulin to prevent rejection of transplanted kidneys, cancer treatment Campath, and certain products now being developed by Genzyme.

Genzyme’s plant in the Allston neighborhood of Boston was temporarily closed last June following a viral contamination.

Though the plant is running again, Genzyme is still not able to meet demand for Cerezyme or Fabrazyme.

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