Genzyme sells diagnostics unit to Sekisui Chemical

Genzyme has agreed a deal to sell off its diagnostics business to Sekisui Chemical in a transaction valued at $265 million (165.4 million pounds).

The deal will see the unit, including all of its assets, locations and employees, transferred into the Japanese firm's ownership, where it will operate as a part of Sekisui Medical.

Genzyme Diagnostics' operations include the provision of cholesterol tests and other innovations in healthcare, as well as offering raw materials and enzymes, clinical chemistry reagents and rapid tests.

The deal is part of a wider reorganisation programme by Genzyme, which also includes the sale of its genetics division and the planned divesture of its pharmaceuticals unit.

Henri Termeer, chairman and chief executive officer of Genzyme, said: "This sale is part of our strategy to sharpen the company's focus and allocate our resources to key areas for our future growth such as manufacturing, our rare disease business and our product pipeline."

Last month, the company revealed that it generated $1 billion in revenue during the third quarter of 2010, compared to $923.8 million in the corresponding period of 2009.