Genzyme, a tracking stock pioneer has to make its innovative capital structure and as a way to grow its R & D-intensive companies are used. Looking at the question of how to best integrate a new acquisition in its tracking stock structure, Genzyme’s top management is forced to examine how tracking equities added value for Genzyme, if this value is sustainable, what future management and control the current structure could pose problems, and how these problems can best be handled. A rewritten version o … Read more »

Genzyme, a tracking stock pioneer has to make its innovative capital structure and as a way to grow its R & D-intensive companies are used. Looking at the question of how to best integrate a new acquisition in its tracking stock structure, Genzyme’s top management is forced to examine how tracking equities added value for Genzyme, if this value is sustainable, what future management and control the current structure could pose problems, and how these problems can best be handled. A rewritten version of an earlier note.
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from
Malcolm S. Salter,
Daniel B. Green
Source: HBS
19 pages.
Publication Date: Nov 14, 2001. Prod #: 902023-PDF-ENG
Tracking Stocks at Genzyme (A) HBR case solution