Acquisitive Ways Paying Off for Genzyme

Biotech powerhouse Genzyme (Nasdaq: GENZ  ) announced last week that a first phase 3 study of stem cell-stimulating drug Mozobil succeeded in primary and secondary tests of the drug's effectiveness.

Mozobil is designed to help stimulate the growth of stem cells within a donor's blood. The stem cells are then extracted and given to a needy sufferer of non-Hodgkin's lymphoma or other blood cancers such as multiple myeloma. Stimulating blood stem cell growth is important, because the more stem cells that can be transplanted from the donor to the cancer patient, the greater the odds for a positive outcome.

This was only the first of two phase 3 studies for Mozobil. The other study is testing the drug in a similar setting for multiple myeloma-related stem cell transplants; results are expected out in a few weeks.

Genzyme acquired Mozobil last year when it paid $580 million for AnorMED, outbidding Millennium Pharmaceuticals (Nasdaq: MLNM  ) . It had been in discussions about acquiring the tiny development-stage drugmaker since 2005, and originally offered $380 million in the beginning of 2006.

A regulatory application to market Mozobil is expected in the first half of next year for both the U.S. and European Union. Since Mozobil has "orphan drug" designation, meaning it helps with a rare condition, it will likely receive a priority six-month regulatory review in the U.S. With a good chance of at least securing U.S. marketing approval for Mozobil in the second half of 2008, it looks like the AnorMED acquisition won't take long to start paying off for Genzyme.

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Fool contributor Brian Lawler does not own shares of any company mentioned in this article. The Fool's disclosure policy digs phlebotomy.