Genzyme Development Partnership

Genzyme Development Partnership was a specialized research and development funding vehicle established by Genzyme Corporation to finance the clinical development of key therapeutic candidates. This structure allowed Genzyme to utilize off-balance-sheet financing for high-risk clinical trials of orphan drugs and specialty therapeutics, such as treatments for Gaucher disease and renal failure. Investors in the partnership provided capital in exchange for royalties or equity conversion rights upon the successful commercialization of the products. Following the successful launch of the targeted therapies, Genzyme typically exercised options to buy out the partnership interests and consolidate the assets. The entity represents a significant historical example of innovative biotech financing that enabled the growth of the rare disease industry. Today, the legacy of these partnerships resides within Sanofi, which acquired Genzyme in 2011.