Case | HBS Case Collection | November 2001 (Revised December 2002)

Tracking Stocks at Genzyme (A)

by Malcolm S. Salter


Genzyme, a tracking stock pioneer, has used its innovative capital structure as a way to frame and grow its R&D-intensive business. Facing the question of how best to integrate a new acquisition into its tracking stock structure, Genzyme's top management is forced to review how tracking stocks add value to Genzyme, whether this value is sustainable, what future governance and control problems the current structure might present, and how these problems might be best handled. A rewritten version of an earlier note.

Keywords: Integration; Value Creation; Motivation and Incentives; Conflict of Interests; Stocks; Capital Structure; Research and Development; Corporate Governance; Biotechnology Industry;


Salter, Malcolm S. "Tracking Stocks at Genzyme (A)." Harvard Business School Case 902-023, November 2001. (Revised December 2002.)