The merger between Genzyme General (Cambridge, MA) and Cell Genesys (Foster City, CA) has been scrapped after shares of a Cell Genesys subsidiary became more valuable than the cash offer from Genzyme. In November 1999, Genzyme was set to acquire Cell Genesys for a net cost of $160 million ( Nat. Biotechnol. 17, 151, 1999 ). The purchase would have included Cell Genesys' 19% share in Abgenix (Fremont, CA), a company developing human monoclonal antibody therapies. But in late December, the Cell Genesys board of directors recommended against the merger after the value of its equity share in Abgenix jumped by about $240 million to more than $350 million as Abgenix's share price tripled to $120 in the wake of several important deals. These include aquisition of full rights of XenoMouse technology from Japan Tobacco and a five-year pact with CuraGen (New Haven, CT) to develop cancer drugs using the technology. Cell Genesys officials say they have no plans for other mergers, but do intend to sell the firm's share in Abgenix over time to raise capital for research projects and product acquisition in the areas of cancer and cardiovascular disease. Cell Genesys will pay Genzyme a $15 million termination fee.