Biotech titan Genzyme (NASDAQ:GENZ) has its roots in the treatment of rare genetic diseases and also has a significant presence in the treatment of renal diseases and providing diagnostic testing services. This year, the company made a move to break in to the oncology market with its acquisition of Ilex Oncology.

One of the drugs brought in through the Ilex acquisition is CLOLAR, or clofarabine. CLOLAR was approved this week for treating children with relapsed or refractor acute lymphocytic leukemia. While there is a definite medical need for the product, this is a small market with only a few thousand new cases per year. Because Genzyme has more than $2 billion in annual revenue, the impact of CLOLAR's approval will be quite modest.

But don't take that to mean that the approval of CLOLAR for acute lymphocytic leukemia is a nonevent. CLOLAR is in additional clinical trials for adult leukemia and solid tumors. Small biotech companies, as Ilex was before the acquisition, often develop cancer drugs for the niche markets first just to get the drug approved as fast as possible to get the revenue flowing. The bigger market opportunities follow later. That could turn out to be the case here if CLOLAR works in solid tumors.

Genzyme owns the rights to CLOLAR in only the U.S. and Canada. Investors who are primarily interested in small caps may want to take a look at Bioenvision (NASDAQ:BIVN) because that company has the marketing rights for the rest of the world.

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Motley Fool Rule Breakers biotech analyst Charly Travers does not own shares of any company mentioned in this article. The Motley Fool has a disclosure policy.