Exhibit 99.1  Dyax-Genzyme
LLC (A Development Stage Enterprise) Financial
Statements  As of December 31,
2006 and 2005, For the
Years Ended December 31, 2006, 2005 and 2004 (Unaudited) and For the
Period from July 1, 2003 (Commencement of Operations) to December 31,
2006


Dyax-Genzyme LLC (A Development Stage Enterprise) Index to Financial Statements  Page(s)Report
  of Independent Auditors
  1Balance
  Sheets as of December 31, 2006 and 2005
  2Statements of Operations
  for the Years Ended December 31, 2006, 2005 and 2004 (Unaudited) and for
  the Period July 1, 2003 (Commencement of Operations) through
  December 31, 2006
  3Statements of Cash Flows
  for the Years Ended December 31, 2006, 2005 and 2004 (Unaudited), and
  for the Period July 1, 2003 (Commencement of Operations) through
  December 31, 2006
  4Statements of Changes in
  Venturers Capital for the Period July 1, 2003 (Commencement of
  Operations) to December 31, 2003 (Unaudited) and for each of the Years
  Ended December 31, 2004 (Unaudited), 2005 and 2006
  5Notes
  to Financial Statements
  6-9


Report of Independent Auditors  To
the Steering Committee of Dyax-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 Dyax-Genzyme LLC (a
development stage enterprise) (the Joint Venture) at December 31, 2006
and 2005, and the results of its operations and its cash flows for the years
then ended and, cumulatively, for the period from July 1, 2003
(commencement of operations) to December 31, 2006 in conformity with
accounting principles generally accepted in the United States of America. These
financial statements are the responsibility of the Joint Ventures
management.  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 audits 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 Joint Ventures management, and evaluating
the overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.   /s/
  PricewaterhouseCoopers LLPBoston,
  MassachusettsFebruary     ,
  2007  1


Dyax-Genzyme LLC (A Development Stage Enterprise) Balance
Sheets (Amounts in thousands)  December 31,2006
  
  2005ASSETSCurrent assets:Cash and cash
  equivalents
  
  $
  1
  
  $
  1Prepaid expenses
  
  34
  
  Funding
  receivable - Dyax Corp.
  
  946
  
  1,721Funding receivable
  - Genzyme Corporation
  
  946
  
  1,720Total current
  assets
  
  1,927
  
  3,442Lab equipment,
  net
  
  514
  
  615Total assets
  
  $
  2,441
  
  $
  4,057LIABILITIES AND VENTURERS CAPITALCurrent
  liabilities:Due to Dyax
  Corp.
  
  $
  1,428
  
  $
  1,508Due to Genzyme
  Corporation
  
  505
  
  953Accrued audit
  fees
  
  32
  
  32Total
  liabilities
  
  1,965
  
  2,493Commitments and
  contingencies (Note F)
  
  
  
  Venturers
  capital:Venturers
  capital  Dyax Corp.
  
  238
  
  782Venturers
  capital  Genzyme Corporation
  
  238
  
  782Total Venturers
  capital
  
  476
  
  1,564Total
  liabilities and Venturers capital
  
  $
  2,441
  
  $
  4,057  The accompanying notes are an integral part of these financial
statements.  2


Dyax-Genzyme LLC (A Development Stage Enterprise) Statements of Operations (Amounts in thousands)  For the PeriodJuly 1, 2003(Commencement ofFor the years Ended December 31,
  
  Operations) Through2006
  
  2005
  
  2004
  
  December 31, 2006(Unaudited)Operating costs
  and expenses:Selling, general
  and administrative
  
  $
  1,376
  
  $
  791
  
  $
  225
  
  $
  2,596Research and
  development
  
  19,328
  
  23,111
  
  11,779
  
  58,477Total operating
  costs and expenses
  
  20,704
  
  23,902
  
  12,004
  
  61,073Loss from
  operations
  
  (20,704
  )
  (23,902
  )
  (12,004
  )
  (61,073
  )Interest income
  
  4
  
  2
  
  8
  
  14Net loss
  
  $
  (20,700
  )
  $
  (23,900
  )
  $
  (11,996
  )
  $
  (61,059
  )Net loss
  attributable to each Venturer:Dyax Corp.
  
  $
  (10,352
  )
  $
  (11,953
  )
  $
  (5,999
  )
  $
  (30,536
  )Genzyme
  Corporation
  
  $
  (10,348
  )
  $
  (11,947
  )
  $
  (5,997
  )
  $
  (30,523
  )  The accompanying notes are an integral part of these financial
statements.  3


Dyax-Genzyme LLC (A Development Stage Enterprise) Statements of Cash
Flows (Amounts in thousands)  For the PeriodJuly 1, 2003(Commencement ofFor the years Ended December 31,
  
  Operations) Through2006
  
  2005
  
  2004
  
  December 31, 2006(Unaudited)Cash
  Flows from Operating Activities:Net loss
  
  $
  (20,700
  )
  $
  (23,900
  )
  $
  (11,996
  )
  $
  (61,059
  )Reconciliation
  of net loss to net cash used in operating activities:Depreciation
  expense
  
  101
  
  93
  
  
  
  194Increase
  (decrease) in cash from working capital changes:Due from (to)
  Dyax Corp.
  
  (80
  )
  1,253
  
  1,692
  
  1,428Due from (to)
  Genzyme Corporation
  
  (448
  )
  1,000
  
  170
  
  505Prepaid expenses
  
  (34
  )
  
  
  
  
  (34
  )Accrued audit
  fees
  
  
  
  32
  
  
  
  32Cash flows from
  operating activities
  
  (21,161
  )
  (21,522
  )
  (10,134
  )
  (58,934
  )Cash
  Flows from Investing Activities:Purchase of lab
  equipment
  
  
  
  
  
  (708
  )
  (708
  )Cash flows from
  investing activities
  
  
  
  
  
  (708
  )
  (708
  )Cash
  Flows from Financing Activities:Capital
  contributed by Dyax Corp.
  
  10,583
  
  10,760
  
  5,425
  
  29,828Capital
  contributed by Genzyme Corporation
  
  10,578
  
  10,756
  
  5,423
  
  29,815Cash flows from
  financing activities
  
  21,161
  
  21,516
  
  10,848
  
  59,643Increase
  (decrease) in cash and cash equivalents
  
  
  
  (6
  )
  6
  
  1Cash and cash
  equivalents at beginning of period
  
  1
  
  7
  
  1
  
  Cash and cash
  equivalents at end of period
  
  $
  1
  
  $
  1
  
  $
  7
  
  $
  1Supplemental
  disclosure of noncash transaction:Funding
  Receivable  Note C.  The accompanying notes are an
integral part of these financial statements.  4


Dyax-Genzyme LLC (A Development Stage Enterprise) Statements of Changes in Venturers Capital (Amounts in thousands)  Venturers Capital
  
  TotalDyax
  
  Genzyme
  
  VenturersCorp.
  
  Corporation
  
  CapitalBalance at
  July 1, 2003 (commencement of operations) (unaudited)
  
  $
  
  
  $
  
  
  $
  2003 capital
  contributions (unaudited)
  
  3,060
  
  3,058
  
  6,118July 1,
  2003 (commencement of operations) to December 31, 2003 net loss
  (unaudited)
  
  (2,232
  )
  (2,231
  )
  (4,463
  )Balance at
  December 31, 2003 (unaudited)
  
  828
  
  827
  
  1,6552004 capital
  contributions (unaudited)
  
  5,425
  
  5,423
  
  10,8482004 net loss
  (unaudited)
  
  (5,999
  )
  (5,997
  )
  (11,996
  )Balance at
  December 31, 2004 (unaudited)
  
  254
  
  253
  
  5072005 capital
  contributions
  
  12,481
  
  12,476
  
  24,9572005 net loss
  
  (11,953
  )
  (11,947
  )
  (23,900
  )Balance at
  December 31, 2005
  
  782
  
  782
  
  1,5642006 capital
  contributions
  
  9,808
  
  9,804
  
  19,6122006 net loss
  
  (10,352
  )
  (10,348
  )
  (20,700
  )Balance at
  December 31, 2006
  
  $
  238
  
  $
  238
  
  $
  476  The accompanying notes are an
integral part of these financial statements.  5


Dyax-Genzyme LLC (A Development Stage Enterprise) Notes to Financial Statements  A.Nature of Business and
Organization  Dyax-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:  ·50.01% by Dyax Corp., which is referred to as
Dyax; and  ·49.99% by Genzyme Corporation, which is
referred to as Genzyme.  Dyax and Genzyme are collectively referred to as the
Venturers and individually as a Venturer. The Joint Venture was organized in June 2003
to develop and commercialize DX-88, one of Dyaxs proprietary compounds for the
treatment of chronic inflammatory diseases. The Joint Venture commenced
operations as of July 1, 2003.  In October 1998, the Venturers entered into a
collaboration agreement to develop and commercialize DX-88 for the treatment of
chronic inflammatory diseases. Under this agreement, which was amended on May 31,
2002, and again effective as of September 30, 2003, Dyax was initially
responsible for all expenses incurred in connection with the development of
DX-88 for the treatment of hereditary angioedema, or HAE, through the
completion of the first Phase II clinical trial for HAE, which occurred in the
second quarter of 2003. In June 2003, Dyax formed Kallikrein LLC, for the
development and commercialization of DX-88 for HAE, and Genzyme exercised its
option under the collaboration agreement to join Dyax in the development and
commercialization of DX-88 for HAE by acquiring a 49.99% interest in Kallikrein
LLC, which then became known as Dyax-Genzyme LLC. Prior to February 20,
2007, under the collaboration agreement, as amended,:  ·the Venturers jointly owned the rights to
DX-88 for the treatment of HAE and other chronic inflammatory diseases. Dyax
was responsible for 50.01% and Genzyme was responsible for 49.99% of all costs
incurred in connection with the development of DX-88 for HAE after completion
of the first Phase II clinical trial;  ·all research and development expenses incurred
by each Venturer related to the HAE program were billed to and reimbursed by
the Joint Venture;  and  ·Dyax and Genzyme were required to make monthly
capital contributions to the Joint Venture to fund budgeted operating costs. If
either Dyax or Genzyme had failed to make two or more of the monthly capital
contributions, and the other party did not exercise its right to terminate the
collaboration agreement or compel performance of the funding obligation, the
defaulting partys percentage interest in the Joint Venture and future funding
responsibility would have been adjusted proportionately.  In August 2006, Dyax, Genzyme and the Joint
Venture entered into an Agreement Regarding Validation Campaign, effective as
of July 1, 2006.  The agreement provided that Dyax would assume
responsibility for the first $14.5 million of manufacturing costs for a series
of consecutive manufacturing batches, known as the validation campaign, which
began in the fourth quarter of 2006 and were intended to validate the
manufacturing process of DX-88 for regulatory purposes and be used for further
clinical studies.  All subsequent costs would have been the responsibility
of the Joint Venture.  Ownership and control of the first $14.5 million of
the drug substance would have been retained by Dyax; the remaining portion
would have been owned and controlled by the Joint Venture.  This
arrangement was intended to ensure Dyax an adequate supply of DX-88 drug
substance for programs outside of the Joint Venture, specifically its DX-88 for
the prevention of blood loss during certain on-pump cardiothoracic surgery
program.  Upon request, Dyax would have supplied drug substance to the
Joint Venture at cost plus a premium at which point the cost would have become
a Joint Venture program expense, which would have been shared equally by Dyax
and Genzyme.  In February 2007, the Venturers entered into an
agreement to terminate the Joint Venture effective February 20, 2007. In
connection with the termination of the Joint Venture, Genzyme made a capital
contribution of approximately $17 million in cash to Dyax-Genzyme LLC and Dyax
purchased Genzymes interest in the Joint Venture for 4.4 million shares of
Dyax common stock valued at
              
million, based on the closing price of Dyax common stock on February 23,
2007. Dyax now owns all of the assets of the Joint Venture, including the
worldwide rights to develop and commercialize DX-88.  The Steering Committee of the Joint Venture
serves as the governing body of the Joint Venture and is responsible for
determining the 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.  6


Dyax-Genzyme LLC (A Development Stage Enterprise) Notes
to Financial Statements (Continued)  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.  As of December 31, 2006 and 2005, for the years
ended December 31, 2006 and 2005 and for the period from July 1, 2003
(commencement of operations) through December 31, 2006, the Joint Venture
qualified as a significant subsidiary to Dyax 
and, as a result, audited financial statements are presented for those
periods. As of December 31, 2004, for the year ended December 31,
2004 and for the period from July 1, 2003 (commencement of operations) to December 31,
2003, the Joint Venture does not meet the criteria of a significant subsidiary
to either Dyax or Genzyme and, as a result, the financial statements for those
periods have not been audited.  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:  ·the Joint Ventures ability to successfully
complete preclinical and clinical development of its products and services;  ·the Joint Ventures ability to manufacture
sufficient amounts of its products for development and commercialization
activities and to do so in a timely and cost-effective manner;  ·the Joint Ventures ability to successfully
obtain timely additional regulatory approvals and adequate patent and other
proprietary rights protection of its products;  ·the scope, validity and enforceability of
patents and other proprietary rights held by third parties and their impact on
the Joint Ventures ability to commercialize its products and services;  ·the accuracy of the Joint Ventures estimates
of the size and characteristics of markets to be addressed by the Joint Ventures
products including growth projections;  ·market acceptance of the Joint Ventures
products in expanded areas of use and new markets; and  ·the content and timing of decisions made by
the FDA, the European Agency for the Evaluation of Medicinal Products and other
regulatory agencies regarding the Joint Ventures products and manufacturing
facilities.  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.  7


Dyax-Genzyme LLC (A Development Stage Enterprise) Notes
to Financial Statements (Continued)  B.    Summary of Significant Accounting Policies (Continued)  Cash and cash equivalents  All of the Joint Ventures cash is held on deposit at
one financial institution.  Equipment  The Joint Venture records equipment at cost. When the
Joint Venture disposes of these assets, it removes the related cost and
accumulated depreciation and amortization from the related accounts on its
balance sheet and includes any resulting gain or loss in its statement of
operations.  The Joint Venture generally computes depreciation for
its equipment using the straight-line method over the estimated useful lives of
the equipment, which is 7 years.  Comprehensive
Loss  The Joint Venture
reports comprehensive income (loss) in accordance with Statement of Financial
Accounting Standards Number, or FAS, 130, Reporting Comprehensive Income.  Comprehensive loss for the years ended December 31,
2006, 2005 and 2004 (unaudited) and for the period from July 1, 2003
(commencement of operations) to December 31, 2006 does not differ from the
reported net loss in each such period.  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. All charges to the Joint Venture are subject to approval by the
Steering Committee. The determination of the amount of internal operating costs
incurred by each Venturer on behalf of the Joint Venture requires significant
judgment by each Venturer. As a result, the financial statements for the Joint
Venture may not be indicative of the results that would have occurred had the
Joint Venture obtained all of its research and development and operating
services from third-party entities. The Joint Venture owed Dyax $1.4 million
and Genzyme $0.5 million as of December 31, 2006 and owed Dyax $1.5
million and Genzyme $1.0 million as of December 31, 2005, primarily for
project expenses incurred on behalf of the Joint Venture.  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
Dyax and Genzyme, as Venturers.  Recent Accounting Pronouncements  FAS 157, Fair Value
Measurements.  In September 2006, the FASB issued
FAS 157, Fair Value Measurements, which provides enhanced guidance for
using fair value to measure assets and liabilities. FAS 157 establishes a
common definition of fair value, provides a framework for measuring fair value
under accounting principles generally accepted in the United States and expands
disclosure requirements about fair value measurements. FAS 157 is
effective for the Joint Venture as of January 1, 2008. The Joint Venture
is currently evaluating the impact, if any, the adoption of FAS 157 will
have on its financial position and results of operations.  8


Dyax-Genzyme LLC (A Development Stage Enterprise) Notes
to Financial Statements (Continued)  C.Funding Receivable  At December 31, 2006 and 2005, both Venturers had not provided their funding commitments for December and, as a result, the Joint Venture recorded funding receivable from each Venturer of $0.9 million at December 31, 2006 and $1.7 million at December 31, 2005. Both Venturers paid their December funding commitments in January of the following year.  D.Lab Equipment (amounts in thousands)  December 31,2006
  
  2005Lab equipment
  
  $
  708
  
  $
  708Accumulated depreciation
  
  (194
  )
  (93
  )Lab equipment, net
  
  $
  514
  
  $
  615  The Joint Ventures depreciation expense was $0.1
million in 2006 and 2005.  E.Venturers Capital  As of December 31, 2006, Venturers capital is
comprised of 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 provided
50.01% by Dyax and 49.99% by Genzyme. As of December 31, 2006, Dyax
provided a total of $30.8 million of funding and Genzyme provided a total of
$30.8 million of funding to the Joint Venture.  F.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, 2006 or 2005.  G.Segment Information  The Joint Venture operates in one business
segmenthuman therapeutics.  9