<PAGE>   1
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q


           (X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                  For the quarterly period ended March 31, 1997

                                       OR

          ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                        For the transition period from to


                         Commission file number 0-18554


                       GENZYME DEVELOPMENT PARTNERS, L.P.
             (Exact name of registrant as specified in its charter)



         Delaware                                               04-3065192
(State or other jurisdiction of                                (IRS Employer
incorporation or organization)                               Identification No.)



One Kendall Square, Cambridge, Massachusetts                      02139
(Address of principal executive offices)                        (Zip Code)


                                 (617) 252-7500
              (Registrant's telephone number, including area code)



Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No___


Total number of pages in document - 54
Exhibit index is located on page 13.
<PAGE>   2
                       GENZYME DEVELOPMENT PARTNERS, L.P.
                            FORM 10-Q, MARCH 31, 1997

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                         PAGE NO.
                                                                                                         --------
<S>           <C>                                                                                        <C>
PART I.       FINANCIAL INFORMATION

ITEM 1.       Financial Statements

                  Statements of Operations for the Three Months Ended March 31, 1997 and 1996...........    3

                  Balance Sheets as of March 31, 1997 and December 31, 1996.............................    4


                  Statements of Cash Flows for the Three Months Ended March 31, 1997 and 1996 ..........    5

                  Notes to Unaudited Condensed Financial Statements.....................................    6-8

ITEM 2.       Management's Discussion and Analysis of Financial Condition and Results of Operations.....    9-10

ITEM 3.       Quantitative and Qualitative Disclosures About Market Risk................................    10

PART II.      OTHER INFORMATION

ITEM 6.       Exhibits and Reports on Form 8-K..........................................................    11

Signatures    ..........................................................................................    12
</TABLE>


NOTE REGARDING FORWARD-LOOKING STATEMENTS:

This Quarterly Report on Form 10-Q for Genzyme Development Partners, L.P. (the
"Partnership") contains forward-looking statements concerning the Partnership's
expected future revenues, operations, and expenditures, and projected
timetables for the preclinical and clinical development, regulatory approval
and market introduction of the Partnership's products. These forward looking
statements represent the expectations of the General Partner as of the filing
date of this Form 10-Q. The Partnership's actual results could differ
materially from those anticipated by the forward looking statements due to
a number of factors, including (i) the Partnership's ability to complete
successfully preclinical and clinical development and obtain timely regulatory
approval and patent and other proprietary  rights protection for its products,
(ii) the content and timing of decisions made by the U.S. Food and Drug
Administration and other agencies regarding the indications for which the
Partnership's products may be approved, (iii) the actual size and
characteristics of markets to be addressed by the Partnership's products, (iv)
market acceptance of the Partnership's products, (v) the Partnership's ability
to obtain reimbursement for its products, (vi) the accuracy of the
Partnership's information concerning the products and resources of competitors
and potential competitors, (vii) continued funding of the Partnership's
research and development programs by Genzyme Corporation, and (viii) the risks
and uncertainties described under the caption "Factors Affecting Future
Operating Results" under Item 7. Management's Discussion and Analysis of
Financial Condition and Results of Operations of the Partnerships Annual Report
on Form 10-K for the year ended December 31, 1996.



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<PAGE>   3
PART I.  FINANCIAL INFORMATION
ITEM 1.  FINANCIAL STATEMENTS

                       GENZYME DEVELOPMENT PARTNERS, L.P.
                            STATEMENTS OF OPERATIONS
               (UNAUDITED, IN THOUSANDS, EXCEPT PER UNIT AMOUNTS)

<TABLE>
<CAPTION>
                                                   THREE MONTHS ENDED
                                                        MARCH 31,
                                                    1997        1996
                                                    ----        ----
<S>                                               <C>          <C>

Royalty revenue from Genzyme Corporation .....    $    10       $  2
                                                 
                                                   
Costs and expenses:
   General and administrative ................         58         10
                                                  -------       ----
                                                      (48)        (8)

Investment income ............................          9          6
                                                  -------       ----
Net income (loss) ............................    $   (39)      $ (2)
                                                  =======       ====
Net income (loss) per partnership unit:

   Limited partners (based on 737 units) .....    $    --       $ (3)
                                                  =======       ====

   General partner (based on 1 unit) .........    $39,000       $(20)
                                                  =======       ====
</TABLE>


        The accompanying notes are an integral part of these unaudited,
                        condensed financial statements.


                                       3
<PAGE>   4
GENZYME DEVELOPMENT PARTNERS, L.P.
BALANCE SHEETS
(UNAUDITED)

<TABLE>
<CAPTION>
(In thousands)                                                              MARCH 31,    DECEMBER 31,
                                                                               1997         1996
                                                                              -----        -----
<S>                                                                           <C>          <C>
                                       ASSETS
Cash and cash equivalents .............................................       $ 168        $ 151
Royalties receivable from Genzyme Corporation .........................          10            8
Investment in Joint Venture (Note 5) ..................................          --           --
                                                                              -----        -----
   Total assets .......................................................       $ 178        $ 159
                                                                              =====        =====

                         LIABILITIES AND PARTNERS' CAPITAL

Accounts payable to Genzyme Corporation (Note 5) ......................       $ 253        $ 245
Accrued expenses ......................................................         160          110
                                                                              -----        -----
   Total liabilities ..................................................         413          355
                                                                              -----        -----
Commitments and contingencies (Note 2) ................................          --           --
                                                                              -----        -----
Partners' capital (deficit) (including accumulated deficit of $32,836):
     General partner ..................................................        (208)        (169)
     Class A limited partners .........................................          --           --
     Class B limited partners .........................................          --           --
                                                                              -----        -----
                                                                               (208)        (169)
     Less: unpaid partners' capital....................................         (27)         (27)
                                                                              -----        -----
         Total partners' capital (deficit) ............................        (235)        (196)
                                                                              -----        -----
         Total liabilities and partners' capital ......................       $ 178        $ 159
                                                                              =====        =====
</TABLE>


         The accompanying notes are an integral part of these unaudited,
                        condensed financial statements.


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<PAGE>   5
GENZYME DEVELOPMENT PARTNERS, L.P.
STATEMENTS OF CASH FLOWS
(UNAUDITED)

<TABLE>
<CAPTION>
                                                                   THREE MONTHS ENDED
(In thousands)                                                         MARCH 31,
                                                                    1997         1996
                                                                   -----        -----
<S>                                                                <C>          <C>
Cash flow from operating activities:
    Net income (loss).......................................       $ (39)       $  (2)
    Reconciliation of net income (loss) to net cash provided
     by operating activities:
     Increase (decrease) in cash from working capital:
      Royalties receivable from Genzyme Corporation ........          (2)          --
      Accounts payable .....................................          58            8
                                                                   -----        -----
    Net cash provided by operating activities ..............          17            6
                                                                   -----        -----
Increase in cash and cash equivalents ......................          17            6
Cash and cash equivalents at beginning of period ...........         151          466
                                                                   -----        -----
Cash and cash equivalents at end of period .................       $ 168        $ 472
                                                                   =====        =====
</TABLE>


         The accompanying notes are an integral part of these unaudited,
                        condensed financial statements.


                                       5
<PAGE>   6
                       GENZYME DEVELOPMENT PARTNERS, L.P.

                NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS



1.       BASIS FOR PRESENTATION

         Genzyme Development, Partners, L.P. (the "Partnership"), a Delaware
         limited partnership was formed in September 1989 to develop, produce
         and derive income from the sale of products (the "Sepra Products") to
         be used to limit the incidence and severity of postoperative
         adhesions. These Products are based on hyaluronic acid ("HA"), a
         naturally occurring biopolymer with unique physical properties. In
         August 1996, Genzyme Corporation ("Genzyme") received marketing
         approval from the U.S. Food and Drug Administration ("FDA") for the 
         Partnership's first product, Seprafilm (TM), and commenced commercial 
         sales of Seprafilm(TM) in the U.S. on behalf of a joint venture (the 
         "Joint Venture") between Genzyme and the Partnership.
        
         Per partnership unit information is based on the number of partnership
         units outstanding at the end of each period. Units outstanding have not
         changed since the date of capitalization of the Partnership.

         These unaudited, condensed financial statements should be read in
         conjunction with the Partnership's Annual Report on Form 10-K for the
         fiscal year ended December 31, 1996 and the financial statements and
         footnotes included therein. Certain information and footnote
         disclosures normally included in financial statements prepared in
         accordance with generally accepted accounting principles have been
         condensed or omitted pursuant to the rules and regulations of 
         Securities and Exchange Commission.

         The financial statements for the three months ended March 31, 1997 and
         1996 are unaudited but include, in the opinion of management, all
         adjustments (consisting only of normally recurring accruals) necessary
         for a fair presentation of the results for the periods presented.


2.       ACCOUNTING POLICIES

         The accounting policies, except as noted below, underlying the
         quarterly financial statements are those set forth in Note B of the
         financial statements included in the Partnership's Annual Report on
         Form 10-K for the year ended December 31, 1996 (the "1996 10-K").


3.       ROYALTY REVENUE RECOGNITION

         Pursuant to the European royalty provision in the Cross License
         Agreement, the Partnership recognizes royalty revenue due from Genzyme
         based on net revenues from the sales of Sepra Products in Europe.


4.       DEVELOPMENT AGREEMENT

         The Partnership's available funds were fully expended during the first
         quarter of 1994. Genzyme has no obligation to fund the Partnership's
         development program beyond the available Partnership funds but will
         fund the programs during 1997 at a level consistent with prior years
         and the 1997 budget for the programs at no expense to the Partnership.


5.       JOINT VENTURE AGREEMENT

         As previously reported in the 1996 10-K, the Partnership and Genzyme 
         agreed to amend and restate the agreement governing the Joint 
         Venture (as so amended and restated, the "Amended and Restated Joint 
         Venture Agreement") 


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<PAGE>   7
                       GENZYME DEVELOPMENT PARTNERS, L.P.
                NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS



5.       JOINT VENTURE AGREEMENT (CONTINUED)
         
         The Amended and Restated Joint Venture Agreement provides, among other
         things, that Genzyme will make non-interest bearing loans to the Joint
         Venture to fund any working capital deficiency of the Joint Venture and
         will make capital contributions to the extent deemed necessary by the
         two ventures in connection with the business of the Joint Venture.
         Genzyme consolidates 100% of the losses of the Joint Venture funded by
         such loans or capital contributions. For the quarter ended March 31,
         1997, the Joint Venture incurred net losses of approximately $0.7
         million, due primarily to the costs associated with the U.S. market
         introduction of Seprafilm[TM], all of which were consolidated by
         Genzyme.

         The Joint Venture has incurred cumulative net losses of $3.2 million
         for the period from August 17, 1996 through March 31, 1997, of which
         $200,000 were funded by a capital contribution from and were allocated
         to the Partnership in the fourth quarter of 1996 and the remainder of 
         which were consolidated by Genzyme.



                                       7

<PAGE>   8
                       GENZYME DEVELOPMENT PARTNERS, L.P.
                NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS



     6.   SUBSEQUENT EVENT

         On May 5, 1997, the General and Plastic Surgery Devices Panel of the
         FDA's Medical Devices Advisory Committee recommended that Genzyme not
         be granted approval to market Sepracoat(TM) coating solution for the
         reduction of adhesions in abdominal and pelvic surgery. Sepracoat(TM)
         is a liquid formulation of HA designed to reduce adhesion formation
         caused by indirect trauma, such as incidental abrasions from tissue
         handling or tissue drying due to exposure and is currently marketed in
         Europe by Genzyme. The panel agreed that the product appears to be
         safe, but indicated that Genzyme had not presented sufficient evidence
         of clinical effectiveness. The panel's recommendation will be
         considered in the FDA's final review of Genzyme's premarket approval
         application for Sepracoat(TM). The recommendation is not binding on the
         FDA, but the agency usually follows the advice of its panels. The
         panel's recommendation does not affect Seprafilm(TM), which received
         FDA approval in August 1996 and is marketed globally. Genzyme is
         considering options for further clinical studies of Sepracoat(TM),
         possibly in combination with Seprafilm(TM).
        
        
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<PAGE>   9
                       GENZYME DEVELOPMENT PARTNERS, L.P.
                    For the Three Months Ended March 31, 1997



ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
         AND RESULTS OF OPERATIONS

INTRODUCTION

The following discussion is a summary of the key factors the General Partner
considers necessary in reviewing the Partnership's results of operations,
liquidity and capital resources. 

RESULTS OF OPERATIONS

Net loss for the three months ended March 31, 1997 increased to $39,000 from a
net loss of $2,000 in the three months ended March 31, 1996 due primarily to
increased legal costs incurred by the Partnership related to the amendment and
restatement of the joint venture agreement between the Partnership and Genzyme,
offset by growth in the royalty revenue recognized by the Partnership related to
European sales of the Sepra Products by Genzyme. Under the terms of the Cross
License Agreement with Genzyme, the Partnership is entitled to receive a royalty
of 6% of net revenues recognized from European sales of the Sepra Products to
the extent necessary to pay certain projected distributions to the partners in
any year. The General Partner believes that the Partnership will continue to be
eligible to receive such royalties during 1997. In addition, administrative
expenses declined 20% to $8,000 in the three months ended March 31, 1997 from
$10,000 in the corresponding period of 1996 primarily due to a reduction in
legal expenses incurred by the Partnership related to maintenance of its
patents.

Investment income, including income which the Partnership recognizes related to
changes in Partnership unit ownership ("Transfer Fee Income"), increased for the
three months ended March 31, 1997 to approximately $9,000 from approximately
$6,000 for the same period in 1996 due largely to a $7,000 increase in
Transfer Fee Income in the first quarter of 1997. Excluding the effect of the
increase in Transfer Fee Income, investment income declined to approximately
$2,000 in the three months ended March 31, 1997 from approximately $6,000 in
the corresponding period of 1996 due to lower average cash balances resulting   
primarily from the Partnership's contribution of $200,000 in cash to the Joint
Venture in the fourth quarter of 1996.

FINANCIAL CONDITION

As of March 31, 1997, the Partnership had $168,000 in cash and cash equivalents.
All of such funds are reserved for general and administrative expenses.

The Partnership's future profitability is primarily dependent upon the Joint
Venture's sales of Sepra Products. As previously reported in the 1996 10-K, the 
Partnership and Genzyme amended and restated the Joint Venture Agreement (as so
amended and restated, the "Amended and Restated Joint Venture Agreement") to
provide, among other things, that Genzyme will make non-interest bearing loans 
to the Joint Venture to fund any working capital deficiency of the Joint 
Venture and will make capital contributions to the extent deemed necessary by 
the two venturers in connection with the business of the Joint Venture.  
Genzyme consolidates 100% of the losses of the Joint Venture funded by such 
loans or capital contributions.  For the quarter ended March 31, 1997, the 
Joint Venture incurred net losses of approximately $0.7 million, due primarily 
to the costs associated with the U.S. market introduction of Seprafilm[TM], all
of which were consolidated by Genzyme.

                                       9
<PAGE>   10

The General Partner believes that substantial additional funds will be required
to complete the development, clinical testing and commercialization of
SepraCoat[TM] and Sepragel[TM]. Genzyme has funded the research and development
program for the Sepra Products on an annual basis since the first quarter of
1994, when all the available funds of the Partnership were substantially
depleted. Genzyme is not obligated to fund additional development of the Sepra  
Products but will continue such funding during 1997 at a level consistent with
prior years and the 1997 budget for the programs.

SUBSEQUENT EVENT

On May 5, 1997, the General and Plastic Surgery Devices Panel of the FDA's
Medical Devices Advisory Committee recommended that Genzyme not be granted
approval to market Sepracoat[TM] coating solution for the reduction of
adhesions in abdominal and pelvic surgery. Sepracoat[TM] is a liquid
formulation of HA designed to reduce adhesion formation caused by indirect
trauma, such as incidental abrasions from tissue handling or tissue drying due
to exposure and is currently marketed in Europe by Genzyme. The panel agreed
that the product appears to be safe, but indicated that Genzyme had not
presented sufficient evidence of clinical effectiveness. The panel's
recommendation will be considered in the FDA's final review of Genzyme
General's premarket approval application for Sepracoat[TM]. The recommendation
is not binding on the FDA, but the agency usually follows the advice of its
panels. The panel's recommendation does not affect Seprafilm[TM], which 
received FDA approval in August 1996 and is marketed globally. Genzyme is
considering options for further clinical studies of Sepracoat[TM], possibly in
combination with Seprafilm[TM].


ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

         Not Applicable.

                                       10
<PAGE>   11
                       GENZYME DEVELOPMENT PARTNERS, L.P.
                            FORM 10-Q, MARCH 31, 1997



PART II. OTHER INFORMATION

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

                  (a)      Exhibits

                           10.1     Amended and Restated Joint Venture Agreement
                                    between the Partnership and Genzyme. Filed
                                    herewith.

                           10.2     Tax Indemnification Agreement between the
                                    Partnership and Genzyme. Filed herewith.

                           10.3     Marketing and Distribution Agreement by and
                                    between Genzyme and Genzyme Ventures II.
                                    Filed herewith.

                           27       Financial Data Schedule for Genzyme
                                    Development Partners, L.P. (for EDGAR filing
                                    purposes only).

                  (b)      Reports on Form 8-K

                           No reports on Form 8-K were filed during the quarter
                           ending March 31, 1997.


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<PAGE>   12
                       GENZYME DEVELOPMENT PARTNERS, L.P.
                            FORM 10-Q, MARCH 31, 1997


                                   SIGNATURES

         Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.




                                  GENZYME DEVELOPMENT PARTNERS, L.P.
                                  (Registrant)

                                  By:  GENZYME DEVELOPMENT CORPORATION II
                                  General Partner


DATE:      May 14, 1997           By: /s/ David J. McLachlan
                                      -----------------------
                                      David J. McLachlan
                                      Duly Authorized Officer and
                                      Principal Financial Officer


                                       12
<PAGE>   13
                       GENZYME DEVELOPMENT PARTNERS, L.P.
                            FORM 10-Q, MARCH 31, 1997



                                 EXHIBIT INDEX

<TABLE>   
<CAPTION> 
Exhibit  
  No.                                 Description                                   Page No.
  ---                                 -----------                                   --------
<S>               <C>                                                                <C>
   10.1           Amended and Restated Joint Venture Agreement between               14-40
                    the Partnership and Genzyme.  Filed herewith.            
                                                                             
   10.2           Tax Indemnification Agreement between the Partnership              41-45
                    and Genzyme.  Filed herewith.                            
                                                                             
   10.3           Marketing and Distribution Agreement by and between                46-52
                    Genzyme and Genzyme Ventures II.  Filed herewith.        
                                                                             
   27             Financial Data Schedule for Genzyme Development                    54
                    Partners, L.P. (for EDGAR filing purposes only).         
                    Filed herewith.                                          
</TABLE> 

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