EXHIBIT 99.1

BioMarin/Genzyme LLC  Financial Statements

As of December 31, 2003 and 2002
and For the Years Ended December 31, 2003, 2002 and 2001

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BioMarin/Genzyme LLC
Index to Financial Statements

|                                                                                                               |  | Page(s)
|-------------------------------------------------------------------------------------------------------------- |  | -------
|Report of Independent Auditors                                                                                 |  | 1      
|Balance Sheets as of December 31, 2003 and 2002                                                                |  | 2      
|Statements of Operations for the years ended December 31, 2003, 2002 and 2001                                  |  | 3      
|Statements of Cash Flows for the years ended December 31, 2003, 2002 and 2001                                  |  | 4      
|Statements of Changes in Venturers' Capital for each of the years ended December 31, 2000 to December 31, 2003 |  | 5      
|Notes to Financial Statements                                                                                  |  | 6-12   

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Report of Independent Auditors

To
the Steering Committee of BioMarin/Genzyme LLC:

In
our opinion, the accompanying balance sheets and the related statements of operations, of cash flows and changes in Venturers' capital present fairly, in all material respects, the
financial position of BioMarin/Genzyme LLC at December 31, 2003 and 2002, and the results of its operations and its cash flows for each of the three years in the period ended
December 31, 2003 in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the Steering Committee of the
Joint Venture; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with auditing standards
generally accepted in the United States of America, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant
estimates made by the LLC's management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

/s/
PricewaterhouseCoopers LLP

Boston,
Massachusetts
January 27, 2004

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BioMarin/Genzyme LLC
Balance Sheets
(Amounts in thousands)

|                                       |                                        | December 31,                            
|-------------------------------------- | -------------------------------------- | ----------------------------------------
|
|ASSETS                                 |                                        |                                         
|Current assets:                        |                                        |                                         
|                                       | Cash and cash equivalents              |                                         
|                                       | Accounts receivable, net               |                                         
|                                       | Funding receivable-BioMarin Companies  |                                         
|                                       | Funding receivable-Genzyme             |                                         
|                                       | Inventories                            |                                         
|                                       |                                        |                                         
|                                       |                                        | Total assets                            
|                                       |                                        |                                         
|LIABILITIES AND VENTURERS' CAPITAL     |                                        |                                         
|Current liabilities:                   |                                        |                                         
|                                       | Due to BioMarin Companies              |                                         
|                                       | Due to Genzyme Corporation             |                                         
|                                       | Accrued expenses                       |                                         
|                                       | Deferred revenue                       |                                         
|                                       |                                        |                                         
|                                       |                                        | Total liabilities                       
|                                       |                                        |                                         
|Commitments and contingencies (Note H) |                                        |                                         
|Venturers' capital:                    |                                        |                                         
|                                       | Venturers' capitalBioMarin Companies  |                                         
|                                       | Venturers' capitalGenzyme Corporation |                                         
|                                       |                                        |                                         
|                                       |                                        | Total venturers' capital                
|                                       |                                        |                                         
|                                       |                                        | Total liabilities and venturers' capital
|                                       |                                        |                                         

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

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BioMarin/Genzyme LLC
Statements of Operations
(Amounts in thousands)

|                                        |                                     | For the Years Ended December 31,   |        
|--------------------------------------- | ----------------------------------- | ---------------------------------- | -------
|
|Revenues:                               |                                     |                                    |        
|                                        | Net product sales                   |                                    | $      
|                                        |                                     |                                    |        
|Operating costs and expenses:           |                                     |                                    |        
|                                        | Cost of products sold               |                                    |        
|                                        | Selling, general and administrative |                                    |        
|                                        | Research and development            |                                    |        
|                                        |                                     |                                    |        
|                                        |                                     | Total operating costs and expenses |        
|                                        |                                     |                                    |        
|Loss from operations                    |                                     |                                    | (29,750
|Interest income                         |                                     |                                    | 71     
|                                        |                                     |                                    |        
|Net loss                                |                                     | $                                  | (29,679
|                                        |                                     |                                    |        
|Net loss attributable to each venturer: |                                     |                                    |        
|                                        | BioMarin Companies                  |                                    | $      
|                                        |                                     |                                    |        
|                                        | Genzyme Corporation                 |                                    | $      
|                                        |                                     |                                    |        

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

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BioMarin/Genzyme LLC  Statements of Cash Flows  (Amounts in thousands)

|                                                 |                                                                      | For the Years Ended December 31,                          |                                          
|------------------------------------------------ | -------------------------------------------------------------------- | --------------------------------------------------------- | -----------------------------------------
|
|Cash Flows from Operating Activities:            |                                                                      |                                                           |                                          
|                                                 | Net loss                                                             |                                                           | $                                        
|                                                 | Reconciliation of net loss to net cash used in operating activities: |                                                           |                                          
|                                                 |                                                                      | Non-cash charges for inventory write down                 |                                          
|                                                 |                                                                      | Increase (decrease) in cash from working capital changes: |                                          
|                                                 |                                                                      |                                                           | Accounts receivable                      
|                                                 |                                                                      |                                                           | Inventories                              
|                                                 |                                                                      |                                                           | Prepaid expenses and other current assets
|                                                 |                                                                      |                                                           | Due to BioMarin Companies.               
|                                                 |                                                                      |                                                           | Due to Genzyme Corporation               
|                                                 |                                                                      |                                                           | Accrued expenses                         
|                                                 |                                                                      |                                                           | Deferred revenue                         
|                                                 |                                                                      |                                                           |                                          
|                                                 |                                                                      |                                                           |                                          
|                                                 |                                                                      |                                                           |                                          
|Cash Flows from Financing Activities:            |                                                                      |                                                           |                                          
|                                                 | Capital contributed by BioMarin Companies                            |                                                           |                                          
|                                                 | Capital contributed by Genzyme Corporation                           |                                                           |                                          
|                                                 |                                                                      |                                                           |                                          
|                                                 |                                                                      |                                                           |                                          
|                                                 |                                                                      |                                                           |                                          
|Increase in cash and cash equivalents            |                                                                      |                                                           | 3,942                                    
|Cash and cash equivalents at beginning of period |                                                                      |                                                           | 10,644                                   
|                                                 |                                                                      |                                                           |                                          
|Cash and cash equivalents at end of period       |                                                                      | $                                                         | 14,586                                   
|                                                 |                                                                      |                                                           |                                          
|Supplemental disclosure of noncash transaction:  |                                                                      |                                                           |                                          
|                                                 | Funding ReceivableNote D.                                           |                                                           |                                          

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

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BioMarin/Genzyme LLC
Statements of Changes in Venturers' Capital
(Amounts in thousands)

|                             |  | Venturers' Capital |         |   |  
|---------------------------- |  | ------------------ | ------- | - | -
|
|Balance at December 31, 2000 |  | $                  | 1,489   |   | $
|2001 capital contributions   |  |                    | 18,129  |   |  
|2001 net loss                |  |                    | (18,473 | ) |  
|                             |  |                    |         |   |  
|Balance at December 31, 2001 |  |                    | 1,145   |   |  
|2002 capital contributions   |  |                    | 25,140  |   |  
|2002 net loss                |  |                    | (14,824 | ) |  
|                             |  |                    |         |   |  
|Balance at December 31, 2002 |  |                    | 11,461  |   |  
|2003 capital contributions   |  |                    | 27,881  |   |  
|2003 net loss                |  |                    | (14,840 | ) |  
|                             |  |                    |         |   |  
|Balance at December 31, 2003 |  | $                  | 24,502  |   | $
|                             |  |                    |         |   |  

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

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BioMarin/Genzyme LLC

Notes to Financial Statements

A.    Nature of Business and Organization

BioMarin/Genzyme LLC, or the Joint Venture, is a limited liability company organized under the laws of the State of Delaware. The Joint Venture is owned:



The
BioMarin Companies and Genzyme are collectively referred to as the Venturers and individually as a Venturer. The Joint Venture was organized in September 1998 to develop and commercialize
Aldurazyme®, a recombinant form of the human enzyme alpha-L-iduronidase, used to treat a lysosomal storage disorder known as mucopolysaccharidosis I, or MPS I. The
Joint Venture commenced operations as of September 4, 1998.

The
Joint Venture, BioMarin Companies and Genzyme entered into a Collaboration Agreement dated as of September 4, 1998. Under the terms of the Collaboration Agreement, Genzyme and
the BioMarin Companies granted to the Joint Venture a world-wide, exclusive, irrevocable, royalty-free right and license or sublicense to develop, manufacture and market
Aldurazyme for the treatment of MPS I and other alpha-L-iduronidase deficiencies. All program-related costs are equally funded by BioMarin, on behalf of the BioMarin Companies,
and Genzyme. BioMarin and Genzyme are required to make monthly capital contributions to the Joint Venture to fund budgeted operating costs. If either BioMarin or Genzyme fails to make all or two or
more of the monthly capital contribution, and the other party does not exercise its right to terminate the Collaboration Agreement or compel performance of the funding obligation, the defaulting
party's (or, in the case of default by BioMarin, the BioMarin Companies') percentage interest in the Joint Venture and future funding responsibility will be adjusted proportionately.

The
Steering Committee of the Joint Venture serves as the governing body of the Joint Venture and is responsible for determining overall strategy for the program, coordinating activities
of the Venturers as well as performing other such functions as appropriate. The Steering Committee is comprised of an equal number of representatives of each Venturer.

On
April 30, 2003, the United States Food and Drug Administration, commonly referred to as the FDA, granted marketing approval for Aldurazyme as an enzyme replacement therapy for
patients with the Hurler and Hurler-Scheie forms of MPS I, and Scheie patients with moderate to severe symptoms. Aldurazyme has been granted orphan drug status in the United States, which provides
seven years of market exclusivity.

On
June 11, 2003, the European Commission granted marketing approval for Aldurazyme to treat the non-neurological manifestations of MPS I in patients with a confirmed
diagnosis of the disease. Aldurazyme has been granted orphan drug status in the European Union, which provides ten years of market exclusivity.

Genzyme
is commercializing Aldurazyme in the United States and is launching Aldurazyme in the European Union on a country-by-country basis as pricing and
reimbursement approvals are obtained. Aldurazyme is manufactured at BioMarin's facility in California and is sent to either Genzyme's manufacturing facility in Allston, Massachusetts or to a
third-party facility for the final filling and finish process.

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B.    Summary of Significant Accounting Policies

Basis of presentation

The Joint Venture is considered a partnership for federal and state income tax purposes. As such, items of income, loss, deductions and credits flow through to
the Venturers. The Venturers have responsibility for the payment of any income taxes on their proportionate share of taxable income of the Joint Venture.

Accounting method

The financial statements have been prepared under the accrual method of accounting in conformity with accounting principles generally accepted in the United
States of America.

Fiscal year-end

The Venturers have determined that the fiscal year-end of the Joint Venture is December 31.

Uncertainties

The Joint Venture is subject to risks common to companies in the biotechnology industry, including:



Use of estimates

Under accounting principles generally accepted in the United States of America, the Joint Venture is required to make certain estimates and assumptions that
affect reported amounts of assets, liabilities, revenues, expenses, and disclosure of contingent assets and liabilities in its financial statements. The Joint Venture's actual results could differ
from these estimates.

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Cash and cash equivalents

Cash and cash equivalents, consisting principally of money market funds with initial maturities of three months or less, are valued at cost plus accrued interest,
which approximates fair market value. All of the Joint Venture's cash is held on deposit at one financial institution.

Inventories

Inventories are valued at cost or, if lower, fair value. The Venturers determine cost using the first-in, first-out method. The Venturers
analyze the Joint Venture's inventory levels quarterly and write down inventory to its net realizable value:



The
Joint Venture capitalizes inventory produced for commercial sale, which may result in the capitalization of inventory that has not been approved for sale. If a product is not
approved for sale, it would likely result in the write off of the inventory and a charge to earnings. At December 31, 2002, all of the Joint Venture's inventories were for products that had not
yet been approved for sale. At December 31, 2003, all of the Joint Venture's inventories are related to products that have been approved for sale.

Comprehensive Loss

The Joint Venture reports comprehensive income (loss) in accordance with Statement of Financial Accounting Standards No. 130, "Reporting Comprehensive
Income." The comprehensive net loss for the years ended December 31, 2003, 2002 and 2001 does not differ from the reported net loss.

Transactions with affiliates

The majority of the Joint Venture's operating expenses consist of project expenses incurred by the Venturers, either for internal operating costs or for
third-party obligations incurred by the Venturers on behalf of the Joint Venture which are then charged to the Joint Venture. The Joint Venture owed a total of $10.9 million at
December 31, 2003 and $4.9 million at December 31, 2002 to the Venturers for project expenses incurred on behalf of the Joint Venture.

Revenue Recognition

The Joint Venture recognizes revenue from product sales when persuasive evidence of an arrangement exists, the product has been shipped, title and risk of loss
have passed to the customer and collection from the customer is reasonably assured.

The
timing of product shipments and receipts can have a significant impact on the amount of revenue that the Joint Venture recognizes in a particular period. Also, Aldurazyme is sold in
part through distributors. Inventory in the distribution channel consists of inventory held by distributors,

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who
are the Joint Venture's customers, and inventory held by retailers, such as pharmacies and hospitals. The Joint Venture's revenue in a particular period can be impacted by increases or decreases
in distributor inventories. If distributor inventories increased to excessive levels, the Joint Venture could experience reduced purchases in subsequent periods, or product returns from the
distribution channel due to overstocking, low end-user demand or product expiration. To determine the amount of Aldurazyme inventory in the Joint Venture's U.S. distribution channel, the
Joint Venture receives data on sales and inventory levels directly from its primary distributors for the product.

The
Joint Venture records reserves for rebates payable under Medicaid and payor contracts, such as managed care organizations, as a reduction of revenue at the time product sales are
recorded. The Joint Venture's Medicaid and payor rebate reserves have two components:



Because
the second component is calculated based on the amount of inventory in the distribution channel, the Joint Venture's assessment of distribution channel inventory levels impacts
its estimated reserve requirements. The Joint Venture's calculation also requires other estimates, including estimates of sales mix, to determine which sales will be subject to rebates and the amount
of such rebates. The Joint Venture updates its estimates and assumptions each period, and records any necessary adjustments to its reserves. At of December 31, 2003, accrued expenses for the
Joint Venture includes a reserve for Medicaid and payor rebates payable of $0.2 million.

The
Joint Venture records allowances for product returns, if appropriate, as a reduction of revenue at the time product sales are recorded. The product returns reserve is estimated based
on the Joint Venture's experience of returns for Aldurazyme, or for similar products. If the history of product returns changes, the reserve is adjusted appropriately. The Joint Venture's estimate of
distribution
channel inventory is also used to assess the reasonableness of its product returns reserve. There was no product returns reserve recorded at December 31, 2003.

Research and development

Research and development costs are expensed in the period incurred. These costs are primarily comprised of development efforts performed by the Venturers or
payments to third parties made by the Venturers, both on behalf of the Joint Venture, during the respective periods.

Income taxes

The Joint Venture is organized as a pass-through entity; accordingly, the financial statements do not include a provision for income taxes. Taxes, if
any, are the liability of the BioMarin Companies and Genzyme, as Venturers.

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C.    Accounts Receivable

The Joint Venture's trade receivables primarily represent amounts due from distributors, healthcare service providers, and companies and institutions engaged in
research and development or production of pharmaceutical and biopharmaceutical products. The Joint Venture performs credit evaluations of its customers on an ongoing basis and generally does not
require collateral. The Joint Venture believes that its credit risk associated with trade receivables is mitigated as a result of the fact that this product is sold to a large number of customers over
a broad geographic range.

The
Joint Venture states accounts receivable at fair value after reflecting an allowance for doubtful accounts for estimated losses resulting from the inability of its customers to make
payments. There was no allowance for doubtful accounts recorded at either December 31, 2003 or 2002. In the future, if the financial condition of any of the Joint Venture's customers were to
deteriorate and result in an impairment of the customer's ability to make payments, an allowance may be required.

D.    Funding Receivable

At December 31, 2003, both Venturers had not provided their funding commitments for December 2003 and, as a result, the Joint Venture recorded funding
receivable from each venturer of $1.9 million. Both Venturers paid their December 2003 funding commitments in January 2004.

E.    Inventories

December 31,2003

2002(Amounts in thousands)Raw materials

$
1,608

$
1,736Work-in-process





3,129Finished products


35,669


12,420Total

$
37,277

$
17,285


The
Joint Venture recorded charges of $2.8 million in 2003 and $7.2 million in 2002 to cost of products sold to write off certain production runs during the scale up of
Aldurazyme manufacturing.

The
Joint Venture capitalizes inventory produced for commercial sale, which may result in the capitalization of inventory that has not been approved for sale. If a product is not
approved for sale, it would likely result in the write off of the inventory and a charge to earnings. At December 31, 2002, all of the Joint Venture's inventories were for products that had not
yet been approved for sale. At December 31, 2003, all of the Joint Venture's inventories are related to products that have been approved for sale.

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F.    Accrued Expenses

December 31,2003

2002Royalties

$
855

$
17Other


321


83Total accrued expenses

$
1,176

$
100


G.    Venturers' Capital

As of December 31, 2003, Venturers' capital is comprised of monthly capital contributions made by the Venturers to fund budgeted costs and expenses of the
Joint Venture in accordance with the Collaboration Agreement, net of losses allocated to the Venturers. All funding is shared equally by the two Venturers. As of December 31, 2003, the BioMarin
Companies and Genzyme have each provided a total of $91.2 million of funding to the Joint Venture.

H.    Commitments and Contingencies

The Joint Venture may become subject to legal proceedings and claims arising in connection with its business. There were no asserted claims against the Joint
Venture as of December 31, 2003.

I.    Segment Information

The Joint Venture operates in one business segmenthuman therapeutics. Disclosures about revenues by geographic area and revenues from major customers
are presented below.

The
following table contains revenue information by geographic area:

For the Years Ended
December 31,2003

2002Revenues:U.S.

$
4,499

$
Europe


6,881


296Other


160


Total

$
11,540

$
296


There
were no sales of Aldurazyme in 2001.

The
Joint Venture's results of operations are solely dependent on sales of Aldurazyme. BioMarin manufactures Aldurazyme at a single manufacturing facility in California. The fill and
finish process is

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completed
at either Genzyme's manufacturing facility in Allston, Massachusetts or at a third party. Sales of Aldurazyme to distributors, as compared to total revenues in 2003, were as follows:

% of Total
Revenues
in 2003Sales to U.S. distributors

19
%Sales to European distributors

9
%Total sales to distributors

28
%


Sales
of Aldurazyme to a single U.S. distributor were 12% of total revenues in 2003. There were no sales of Aldurazyme to distributors in 2002.

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