0000950135-95-001968.txt : 19950925 0000950135-95-001968.hdr.sgml : 19950925 ACCESSION NUMBER: 0000950135-95-001968 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950921 ITEM INFORMATION: Other events FILED AS OF DATE: 19950921 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: GENZYME CORP CENTRAL INDEX KEY: 0000732485 STANDARD INDUSTRIAL CLASSIFICATION: PHARMACEUTICAL PREPARATIONS [2834] IRS NUMBER: 061047163 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-14680 FILM NUMBER: 95575290 BUSINESS ADDRESS: STREET 1: ONE KENDALL SQUARE CITY: CAMBRIDGE STATE: MA ZIP: 02139 BUSINESS PHONE: 6172527500 MAIL ADDRESS: STREET 1: ONE KENDALL SQUARE CITY: CAMBRIDGE STATE: MA ZIP: 02139 8-K 1 FORM 8-K FOR GENZYME CORPORATION 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): SEPTEMBER 21, 1995 GENZYME CORPORATION (Exact name of registrant as specified in its charter) MASSACHUSETTS 0-14680 06-1047163 (State or other jurisdiction (Commission File (IRS Employer of incorporation) Number) Identification No.) ONE KENDALL SQUARE, CAMBRIDGE, MASSACHUSETTS 02139 (Address of principal executive offices and zip code) Registrant's telephone number, including area code: (617) 252-7500 2 ITEM 5. OTHER. ------ In order to update the information previously filed with the Securities and Exchange Commission at pages IV-38 to IV-41 of Annex IV, pages V-37 to V-41 of Annex V and pages VI-2 to VI-6 of Annex VI to the Prospectus/Joint Proxy Statement included in the Registration Statement of Genzyme Corporation ("Genzyme") on Form S-4 (Commission File No. 33-83346) that became effective on November 9, 1994, Genzyme hereby files as Exhibit 99.1 pro forma statements of operations for the year ended December 31, 1994 for Genzyme Corporation, Genzyme General Division and Genzyme Tissue Repair Division, assuming the acquisition by Genzyme of BioSurface Technology, Inc. ("BioSurface") on January 1, 1994. 2 3 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: September 21, 1995 GENZYME CORPORATION By: /s/ David J. McLachlan ----------------------------------- David J. McLachlan Senior Vice President, Finance; Chief Financial Officer 3 4 EXHIBIT INDEX EXHIBIT SEQUENTIAL NO. DESCRIPTION PAGE NO. ------- ----------- ---------- 99.1 Pro forma statements of operations for the year ended 5 December 31, 1994 for Genzyme Corporation, Genzyme General Division and Genzyme Tissue Repair Division, assuming the acquisition by Genzyme of BioSurface on January 1, 1994. Filed herewith. 4 EX-99.1 2 PRO FORMA STATEMENTS OF OPERATIONS 1 EXHIBIT 99.1 GENZYME CORPORATION AND SUBSIDIARIES BIOSURFACE TECHNOLOGY, INC. PRO FORMA COMBINED STATEMENT OF OPERATIONS (NOTE 1) FOR THE YEAR ENDED DECEMBER 31, 1994 (UNAUDITED, IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
Pro Forma Adjustments (Note 2) ---------------------------- Genzyme Historical Historical BioSurface Genzyme Stock Pro Forma Genzyme BioSurface Acquisition Proposal Adjusted ---------- ---------- ----------- ------------- ---------- Revenues: Products and services $288,331 $ 6,320 $294,651 Research and development 22,396 - 22,396 -------- ------- -------- 310,727 6,320 317,047 Costs and expenses: Products and services 124,342 1,905 126,247 Selling, general and administrative 85,599 5,147 90,746 Research and development 55,027 8,452 63,479 -------- ------- -------- 264,968 15,504 280,472 -------- ------- -------- Income (loss) from operations 45,759 (9,184) 36,575 Other income (expenses): Minority interest 1,659 - 1,659 Equity in net loss of affiliate (1,353) - (1,353) Impaired investments (9,431) - (9,431) Settlement of lawsuit (1,980) - (1,980) Investment income 9,072 741 9,813 Interest expense (1,354) - (1,354) -------- ------- -------- (3,387) 741 (2,646) -------- ------- -------- Income (loss) before income taxes 42,372 (8,443) 33,929 Provision for income taxes (14,830) - (14,830) -------- ------- -------- Net income (loss) $ 27,542 $(8,443) $ 19,099 ======== ======= ======== Net income (loss) per common share (Note 3): BioSurface $ (0.97) ======= General Stock $ 1.05 $ 1.35 ======== ======== TR Stock $ (1.51) ======== Number of common shares outstanding for purpose of computing net income (loss) per share: BioSurface 8,696 (8,696) [A] ======= General Stock 26,169 26,169 ======== ======== TR Stock 5,000 [A] 3,357[B] 8,357 ========
See Accompanying Notes to Unaudited Pro Forma Combined Financial Statements 2 GENZYME CORPORATION AND SUBSIDIARIES BIOSURFACE TECHNOLOGY, INC. NOTES TO PRO FORMA COMBINED FINANCIAL STATEMENTS (UNAUDITED) 1. Basis of Presentation The unaudited Pro Forma Combined Statement of Operations is presented to give effect to the acquisition of BioSurface Technology, Inc. ("BioSurface") by Genzyme Corporation ("Genzyme") in a stock for stock transaction and to reflect the approval of the Genzyme Stock Proposal which created two classes of common stock, General Division Common Stock ("General Stock") and Tissue Repair Division Common Stock ("TR Stock"). Under the terms of the agreement, Genzyme issued approximately .575 shares of TR Stock for each share of BioSurface common stock outstanding. The acquisition was accounted for as a purchase. The unaudited Pro Forma Combined Statement of Operations includes the historical results of Genzyme and BioSurface for the year ended December 31, 1994. The unaudited Pro Forma Combined Statement of Operations includes the effect of the acquisition as though the transaction had occurred January 1, 1994. The unaudited Pro Forma Combined Statement of Operations should be read in conjunction with the historical financial statements of Genzyme and BioSurface included in the Prospectus/Proxy Statement. 2. Adjustments The following adjustments have been made in preparation of the unaudited Pro Forma Combined Statement of Operations: A. Adjustment to weighted average shares outstanding to reflect the retirement of BioSurface common stock and the issuance of TR Stock pursuant to the acquisition. Loss per common share is based solely on the weighted average number of shares of common stock outstanding as the inclusion of common stock equivalents would be antidilutive. 2 3 GENZYME CORPORATION AND SUBSIDIARIES BIOSURFACE TECHNOLOGY, INC. NOTES TO PRO FORMA COMBINED FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) B. Adjustment to weighted average shares outstanding to reflect the issuance and distribution to Genzyme shareholders of TR Stock pursuant to the Genzyme Stock Proposal. 3. Net Income (loss) per Common Share Pursuant to the Genzyme Stock Proposal, the method of calculating income per share for General Stock and TR Stock reflects the terms of the restated Articles of Organization which provide that dividends may be declared and paid only out of the lesser of funds of the Company legally available therefor and each division's Available Dividend Amount as defined. Each division computes income per share by dividing the income attributable to the division by the weighted average number of shares of common stock and dilutive common stock equivalents outstanding during the applicable period. Income attributable to each division would generally equal the division's net income or loss for the relevant period determined in accordance with generally accepted accounting principles in effect at such time adjusted by the amount of tax benefits allocated to or from the division pursuant to the terms of the Genzyme Stock Proposal. The Genzyme Stock Proposal provides that, as of the end of any fiscal quarter of the Company, any projected tax benefit attributable to any division that cannot be utilized by such division to offset or reduce its current or deferred income tax expense may be allocated to any other division without any compensating payment or allocation. 3 4 GENZYME TISSUE REPAIR DIVISION BIOSURFACE TECHNOLOGY, INC. PRO FORMA COMBINED STATEMENT OF OPERATIONS (NOTE 1) FOR THE YEAR ENDED DECEMBER 31, 1994 (UNAUDITED, IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
GTR Historical Historical Pro Forma Adjustments Pro Forma GTR BioSurface (Note 2) Adjusted ---------- ---------- ---------------------- --------- Product revenue $ - $ 6,320 $ 6,320 Costs and expenses: Cost of products sold - 1,905 1,905 Selling, general and administrative 833 5,147 5,980 Research and development 3,331 8,452 11,783 ------- ------- -------- 4,164 15,504 19,668 ------- ------- -------- Loss from operations (4,164) (9,184) (13,348) Other income (expenses): Investment income - 741 741 ------- ------- -------- Net loss $(4,164) $(8,443) $(12,607) ======= ======= ======== Net loss per common share (Note 3) $ (0.97) $ (1.51) ======= ======== Number of common shares outstanding for purpose of computing net loss per share 8,696 8,357[A] (8,696)[A] 8,357 ======= ========
See Accompanying Notes to Unaudited Pro Forma Combined Financial Statements 4 5 GENZYME TISSUE REPAIR DIVISION BIOSURFACE TECHNOLOGY, INC. NOTES TO PRO FORMA COMBINED FINANCIAL STATEMENTS (UNAUDITED) 1. Basis of Presentation The unaudited Pro Forma Combined Statement of Operations is presented to give effect to the acquisition of BioSurface Technology, Inc. ("BioSurface") by Genzyme Corporation ("Genzyme") in a stock for stock transaction and to reflect the approval of the Genzyme Stock Proposal which created two classes of common stock, General Division Common Stock ("General Stock") and Tissue Repair Division Common Stock ("TR Stock"). Under the terms of the agreement, Genzyme issued approximately .575 shares of TR Stock for each share of BioSurface common stock outstanding. The acquisition was accounted for as a purchase. The unaudited Pro Forma Combined Statement of Operations includes the historical results of the Division and BioSurface for the year ended December 31, 1994 as though the transaction had occurred at January 1, 1994. The unaudited Pro Forma Combined Financial Statement of Operations should be read in conjunction with the historical financial statements of the Division and BioSurface included in the Prospectus/Proxy Statement. 2. Adjustments The following adjustment has been made in preparation of the unaudited Pro Forma Combined Statement of Operations: A. Adjustment to weighted average shares outstanding to reflect the retirement of BioSurface common stock and the issuance of TR Stock pursuant to the acquisition and the Genzyme Stock Proposal. Loss per common share is based solely on the weighted average number of shares of common stock outstanding as the inclusion of common stock equivalents would be antidilutive. 5 6 GENZYME TISSUE REPAIR DIVISION BIOSURFACE TECHNOLOGY, INC. NOTES TO PRO FORMA COMBINED FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED) 3. Net Income (Loss) Per Share: Historical income per share is omitted from the Pro Forma Combined Statement of Operations as the Tissue Repair Division was not part of the capital structure of the Company for the periods presented. Following implementation of the Genzyme Stock Proposal, the method of calculating income per share for General Stock and TR Stock reflects the terms of the Articles of Organization, as amended, which provide that dividends may be declared and paid only out of the lesser of funds of the Company legally available therefor and each division's Available Dividend Amount as defined. Each division computes income per share by dividing the income attributable to the division by the weighted average number of shares of the division's stock and dilutive common stock equivalents outstanding during the applicable period. Income attributable to each division would generally equal the division's net income or loss for the relevant period determined in accordance with generally accepted accounting principles in effect at such time adjusted by the amount of tax benefits allocated to or from the division pursuant to the terms of the Genzyme Stock Proposal. The Genzyme Stock Proposal provides that, as of the end of any fiscal quarter of the Company, any projected tax benefit attributable to any division that cannot be utilized by such division to offset or reduce its current or deferred income tax expense may be allocated to the other division without any compensating payment or allocation. 6 7 GENZYME GENERAL DIVISION PRO FORMA COMBINED STATEMENT OF OPERATIONS (NOTE 1) FOR THE YEAR ENDED DECEMBER 31, 1994 (UNAUDITED, IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
General Historical Pro Forma Division General Adjustments Pro Forma Division (Note 2) Adjusted ---------- ----------- --------- Revenues: Products and services $288,331 $288,331 Research and development 22,396 22,396 -------- -------- 310,727 310,727 Costs and expenses: Products and services 124,342 124,342 Selling, general and administrative 84,767 84,767 Research and development 51,696 51,696 -------- -------- 260,805 260,805 -------- -------- Income from operations 49,922 49,922 Other income (expenses): Minority interest 1,659 1,659 Equity in net loss of unconsolidated affiliate (1,353) (1,353) Charge for impaired investments (9,431) (9,431) Settlement of lawsuit (1,980) (1,980) Investment income 9,072 9,072 Interest expense (1,354) (1,354) -------- -------- (3,387) (3,387) -------- -------- Income before income taxes 46,535 46,535 Provision for income taxes (16,341) (16,341) -------- -------- Net income $ 30,194 30,194 ======== Allocated tax benefit generated by Tissue Repair Division 5,169 -------- Net income attributable to General Stock $ 35,363 ======== Net income per General Share (Note 3) $ 1.35 ======== Number of Genzyme Common Shares outstanding for purpose of computing net income per share 26,169[A] 26,169 ========
See Accompanying Notes to Unaudited Pro Forma Combined Financial Statements 7 8 GENZYME GENERAL DIVISION NOTES TO PRO FORMA COMBINED FINANCIAL STATEMENTS (UNAUDITED) 1. Basis of Presentation The unaudited Pro Forma Combined Statement of Operations is presented to give effect to the establishment of the Genzyme Tissue Repair Division ("GTR") and its acquisition of Biosurface Technology, Inc. ("BioSurface"). The unaudited Pro Forma Combined Statement of Operations includes the historical results of the General Division for the year ended December 31, 1994. The unaudited Pro Forma Combined Statement of Operations gives effect to the establishment of GTR as though the transaction had occurred January 1, 1994. The unaudited Pro Forma Combined Statement of Operations should be read in conjunction with the historical financial statements of the General Division included in the Prospectus/Proxy Statement. 2. Adjustments The following adjustment has been made in preparation of the unaudited Pro Forma Combined Statement of Operations: A. Adjustment to record weighted average shares of Genzyme Common Stock outstanding. 3. Net Income (Loss) Per Share Pursuant to the approved Genzyme Stock Proposal, the method of calculating income per share for General Stock and TR Stock reflects the terms of the restated Articles of Organization which provide that dividends may be declared and paid only out of the lesser of funds of the Company legally available therefor and each division's Available Dividend Amount as defined. Each division would compute income per share by dividing the income attributable to the division by the weighted average number of shares of common stock and dilutive common stock equivalents outstanding during the applicable period. Income attributable to each division would generally equal the division's net income or loss for the relevant period determined in accordance with generally accepted accounting principles in effect at such time adjusted by the amount of tax benefits allocated to or from the division pursuant to the terms of the Genzyme Stock Proposal. The Genzyme Stock Proposal provides that, as of the end of any fiscal quarter of the Company, any projected tax benefit attributable to any division that cannot be utilized by such division to offset or reduce its current or deferred income tax expense may be allocated to the other division without any compensating payment or allocation. 8