New opportunities with Synvisc

In January 2005, we completed the buyback of the sales and marketing rights to Synvisc from Wyeth in the United States and five European countries. This transaction will have a positive effect on Genzyme's top and bottom lines. We also gained a top-flight sales force, as 95 of Wyeth's U.S. sales representatives have moved to Genzyme and joined with our existing U.S. orthopaedics sales team. Assuming control of the Synvisc franchise enables us to further invest in the product, improve its profitability, forcefully meet competition, and gain the full financial rewards from our efforts.

In the United States and Canada, Synvisc is the leading viscosupplementation product for patients experiencing pain from osteoarthritis (OA) of the knee, and it occupies a top position for this indication in Europe. Because it is delivered directly to the knee by injection, Synvisc does not have the major side effects associated with some systemic nonsteroidal anti-inflammatory drugs and COX-2 agents. Additionally, Synvisc is the only viscosupplement on the U.S. market that can provide up to six months of OA knee pain relief with only three injections per treatment regimen.

Marketed in more than 60 countries, Synvisc has been used to treat OA pain in more than three million patients worldwide, with much opportunity for expansion — including Japan, where we anticipate approval in 2005. We are committed to expanding indications to joints beyond the knee through new clinical trials. Enrollment is currently 75 percent complete in a U.S. trial for use of Synvisc in the hip, an indication that is already approved in Europe and Canada. We are enrolling patients in trials of ankle and shoulder indications in Europe. We are also in the clinic with dual next-generation approaches to enhance convenience for Synvisc patients through fewer injections. Synvisc is part of our highly productive biomaterials technology platform, which we are continually leveraging for new product development.