In addition, the company announced that a recently completed phase 2 study ofmodified release recombinant human thyroid stimulating hormone in patients withmultinodular goiter met its primary endpoint of improving goiter reductioncompared to placebo at six months. There were no related serious adverse eventsin the trial, and the treatment was generally well tolerated. Genzyme expects tobegin a phase 3 study in the middle of next year. Business and Pipeline UpdatesGenzyme provided an update on the recent U.S. launch of Synvisc-One? (hylan G-F20), which is exceeding expectations and projected to be a key growth driver forthe Biosurgery business.

After one month on the market, Synvisc-One accounts forapproximately 30 percent of total U.S sales of Synvisc® (hylan G-F 20). Thecompany is focused on developing and expanding the market for this product,which reduces the burden and cost of multiple injections. Within the Hematologic Oncology segment, Genzyme has solidified its presence inthis field by assembling an innovative product portfolio, accelerating revenuegrowth through new product launches and label expansions, and increasing thebusiness`s profitability. The company`s oncology and transplant businessestogether are expected to generate approximately $1 billion in revenue by 2011. The recently announced transaction with Bayer HealthCare enhances this positionwith two products that complement the company`s existing products in oncologyand bone marrow transplant. The transaction will also extend the business`sglobal reach to include a commercial presence in more than 90 countries. Withthe combined portfolio, Genzyme is now poised to offer patients and physicians acomprehensive set of treatment options across the continuum of care forhematological malignancies, from diagnosis to therapy and follow up.

Onelate-stage potential new therapy in this setting is Prochymal, an adult stemcell treatment that is the focus of a collaboration with Osiris TherapeuticsInc Data from two phase 3 trials of Prochymal`s use in graft vs. host diseaseare expected during the second half of this year. The Bayer transaction is expected to close this quarter and will also provideGenzyme with primary responsibility for the development and commercialization ofalemtuzumab for multiple sclerosis. The company is making excellent progresswithin this development program. Enrollment has been completed in the first oftwo phase 3 trials of the treatment, with the trial now over-enrolled due tostrong physician and patient interest in the program. With this momentum,Genzyme expects to complete enrollment in the second phase 3 study by the end ofthis year Genzyme anticipates U.S approval of the treatment in 2012.