UPDATE 1-Genzyme to sell diagnostic unit to Sekisui Chemical

* Sekisui Chemical to pay $265 million for business

* Genzyme has been looking for to sell noncore assets

* Genzyme has rebuffed $18.5 bln takeover offer from Sanofi

* Sekisui aims to lift share of global diagnostic drug market

* Sekisui shares jump 5.5 percent on news, outperform Nikkei

(Adds more details, share prices)

TOKYO, Nov 18 (BestGrowthStock) – U.S. biotechnology company Genzyme
Corp (GENZ.O: ) will sell its diagnostics business to Japan’s
Sekisui Chemical (4204.T: ) for $265 million, one of three units it
designated for sale in a bid to shore up investor confidence.

The deal comes as Genzyme, a specialist in rare diseases,
looks to fend off a $18.5 billion hostile takeover bid by French
drugmaker Sanofi-Aventis (SASY.PA: ) for the entire company.
Genzyme has dismissed the offer as too low. [ID:nN15264829]

Genzyme said in May that it was looking into selling three
businesses — genetic testing, diagnostic products and
pharmaceutical materials — and agreed in September to sell the
genetics business for $925 million. [ID:nSGE68C0FQ]

Sekisui, which has positioned its drug business as a focus
area, said in a statement that it would use the United States and
European sales resources of the Genzyme unit to expand its
medical products business in those regions.

Shares of Sekisui extended gains after the announcement to
close up 5.5 percent at 591 yen, outperforming a 2.1 percent rise
in the Nikkei stock average (.N225: ).

(Reporting by Yumiko Nishitani; Editing by Nathan Layne)

UPDATE 1-Genzyme to sell diagnostic unit to Sekisui Chemical