**Exhibit 99.1**

**Dyax-Genzyme LLC (A Development Stage Enterprise)**Financial Statements

**As ofDecember 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**

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**Dyax-GenzymeLLC**

**(ADevelopment Stage Enterprise)**

**Index toFinancial Statements**

** **
|                                                                                                                                                                                                                                   | ** **

**Pages** |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------|--------|
| Report of Independent Auditors                                                                                                                                                                                                         | 1                     |   |
|                                                                                                                                                                                                                                   |                  |   |
| Balance Sheets as of December 31, 2006 and 2005                                                                                                                                                                                        | 2                     |   |
|                                                                                                                                                                                                                                   |                  |   |
| Statements 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                                               |  

3             |   |
|                                                                                                                                                                                                                                   |                  |   |
| Statements 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                                              |  

4             |   |
|                                                                                                                                                                                                                                   |                  |   |
| Statements 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 |  

 

5     |   |
|                                                                                                                                                                                                                                   |                  |   |
| Notes to Financial Statements                                                                                                                                                                                                          | 6-9                   |   |

 

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**Report of Independent Auditors**

Tothe Steering Committee of Dyax-Genzyme LLC:

 In our opinion, the accompanying balancesheets and the related statements of operations, of cash flows and changes inVenturers’ capital present fairly, in all material respects, the financialposition of Dyax-Genzyme LLC (a development stage enterprise) (the “JointVenture”) at December 31, 2006 and 2005, and the results of its operationsand its cash flows for the years then ended and, cumulatively, for the periodfrom July 1, 2003 (commencement of operations) to December 31, 2006 inconformity with accounting principles generally accepted in the United Statesof America. These financial statements are the responsibility of the JointVenture’s management.  Our responsibilityis to express an opinion on these financial statements based on our audits. Weconducted our audits of these statements in accordance with auditing standardsgenerally accepted in the United States of America, which require that we planand perform the audits to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements, assessing the accounting principles used andsignificant estimates made by management, and evaluating the overall financialstatement presentation. We believe that our audits provide a reasonable basisfor our opinion.

/s/PricewaterhouseCoopers LLP

Boston,MassachusettsMarch 12, 2007

1

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Dyax-Genzyme LLC(A Development Stage Enterprise)Balance Sheets(Amounts in thousands)
| ** **                                          | ** ** | **December 31,** | ** ** |
|-----------------------------------------------------|------------|-----------------------|------------|
| ** **                                          | ** ** | **2006**              | ** ** | **2005** | ** ** |
| **ASSETS**                                          | ** ** | ** **            | ** ** | ** ** | ** ** |
| Current assets:                                     |       |                  |       |   |   |
| Cash and cash  equivalents                          |       | $                     | 1          |   | $ | 1 |   |
| Prepaid expenses                                    |       | 34                    |       | — |   |
| Funding  receivable - Dyax Corp.                    |       | 966                   |       | 1,721 |   |
| Funding  receivable - Genzyme Corporation           |       | 966                   |       | 1,720 |   |
| Total current  assets                               |       | 1,967                 |       | 3,442 |   |
| Lab equipment,  net                                 |       | 514                   |       | 615 |   |
| Total assets                                        |       | $                     | 2,481      |   | $ | 4,057 |   |
| **LIABILITIES  AND VENTURERS’ CAPITAL**        | ** ** | ** **            | ** ** | ** ** | ** ** |
| Current liabilities:                                |       |                  |       |   |   |
| Due to Dyax  Corp.                                  |       | $                     | 1,428      |   | $ | 1,508 |   |
| Due to Genzyme  Corporation                         |       | 505                   |       | 953 |   |
| Accrued audit  fees                                 |       | 32                    |       | 32 |   |
| Total  liabilities                                  |       | 1,965                 |       | 2,493 |   |
|                                                |       |                  |       |   |   |
| Commitments and  contingencies (Note F)             |       | —                |       | — |   |
|                                                |       |                  |       |   |   |
| Venturers’ capital:                            |       |                  |       |   |   |
| Venturers’  capital — Dyax Corp.          |       | 258                   |       | 782 |   |
| Venturers’  capital — Genzyme Corporation |       | 258                   |       | 782 |   |
| Total Venturers’  capital                      |       | 516                   |       | 1,564 |   |
| Total liabilities and  Venturers’ capital      |       | $                     | 2,481      |   | $ | 4,057 |   |

 

*The accompanying notes are an integral part of these financialstatements.*

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**Dyax-GenzymeLLC**

**(A Development Stage Enterprise)**

**Statements of Operations**

**(Amounts in thousands)**

 
| ** **                               | ** ** | ** **                                                    | ** ** | ** **                   | ** ** | ** **      | ** ** | **For the Period**    | ** ** |
|------------------------------------------|------------|---------------------------------------------------------------|------------|------------------------------|------------|-----------------|------------|---------------------------------|------------|
| ** **                               | ** ** | ** **                                                    | ** ** | ** **                   | ** ** | ** **      | ** ** | **July 1, 2003**      | ** ** |
| ** **                               | ** ** | ** **                                                    | ** ** | **(Commencement of**    | ** ** |
| ** **                               | ** ** | **For the years Ended December 31,** | ** ** | **Operations) Through** | ** ** |
| ** **                               | ** ** | **2006**                                                      | ** ** | **2005**                     | ** ** | **2004**        | ** ** | **December 31, 2006** | ** ** |
| ** **                               | ** ** | ** **                                                    | ** ** | ** **                   | ** ** | **(Unaudited)** | ** ** | ** **                      | ** ** |
|                                     |       |                                                          |       |                         |       |            |       |                            |       |
| Operating costs  and expenses:           |       |                                                          |       |                         |       |            |       |                            |       |
| Selling, general and administrative      |       | $                                                             | 1,376      |                         | $          | 791             |       | $                               | 225        |   | $ | 2,596 |   |
| Research and development                 |       | 19,328                                                        |       | 23,111                       |       | 11,779          |       | 58,477                          |       |
| Total operating costs and expenses       |       | 20,704                                                        |       | 23,902                       |       | 12,004          |       | 61,073                          |       |
| Loss from  operations                    |       | (20,704                                                       | )          | (23,902                      | )          | (12,004         | )          | (61,073                         | )          |
|                                     |       |                                                          |       |                         |       |            |       |                            |       |
| Interest income                          |       | 4                                                             |       | 2                            |       | 8               |       | 14                              |       |
| Net 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 financialstatements.*

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**Dyax-GenzymeLLC**

**(A Development Stage Enterprise)**

**Statements of Cash Flows**

**(Amounts in thousands)**

 
| ** **                                                            | ** ** | ** **                                                    | ** ** | ** **                   | ** ** | ** **      | ** ** | **For the Period**    | ** ** |
|-----------------------------------------------------------------------|------------|---------------------------------------------------------------|------------|------------------------------|------------|-----------------|------------|---------------------------------|------------|
| ** **                                                            | ** ** | ** **                                                    | ** ** | ** **                   | ** ** | ** **      | ** ** | **July 1, 2003**      | ** ** |
| ** **                                                            | ** ** | ** **                                                    | ** ** | ** **                   | ** ** | ** **      | ** ** | **(Commencement of**       | ** ** |
| ** **                                                            | ** ** | **For the years Ended December 31,** | ** ** | **Operations) Through** | ** ** |
| ** **                                                            | ** ** | **2006**                                                      | ** ** | **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                           |       | —          |       | 194                             |       |
| Increase (decrease) in cash from working capital  changes:            |       |                                                          |       |                         |       |            |       |                            |       |
| Due from (to) Dyax Corp.                                              |       | (80                                                           | )          | 1,253                        |       | 1,692           |       | 1,428                           |       |
| Due from (to) Genzyme Corporation                                     |       | (448                                                          | )          | 1,000                        |       | 170             |       | 505                             |       |
| Prepaid expenses                                                      |       | (34                                                           | )          | —                       |       | —          |       | (34                             | )          |
| Accrued audit fees                                                    |       | —                                                        |       | 32                           |       | —          |       | 32                              |       |
| Cash 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           |       | 29,828                          |       |
| Capital  contributed by Genzyme Corporation                           |       | 10,578                                                        |       | 10,756                       |       | 5,423           |       | 29,815                          |       |
| Cash flows from financing activities                                  |       | 21,161                                                        |       | 21,516                       |       | 10,848          |       | 59,643                          |       |
|                                                                  |       |                                                          |       |                         |       |            |       |                            |       |
| Increase  (decrease) in cash and cash equivalents                     |       | —                                                        |       | (6                           | )          | 6               |       | 1                               |       |
| Cash and cash  equivalents at beginning of period                     |       | 1                                                             |       | 7                            |       | 1               |       | —                          |       |
| Cash and cash  equivalents at end of period                           |       | $                                                             | 1          |                         | $          | 1               |       | $                               | 7          |   | $ | 1 |   |
|                                                                  |       |                                                          |       |                         |       |            |       |                            |       |
| Supplemental  disclosure of noncash transaction:                      |       |                                                          |       |                         |       |            |       |                            |       |
| Funding  Receivable — Note C                                     |       |                                                          |       |                         |       |            |       |                            |       |

 

*The accompanying notes are an integral part of these financialstatements.*

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**Dyax-GenzymeLLC(A Development Stage Enterprise)Statements of Changes in Venturers’ Capital****(Amountsin thousands)**
| ** **                                                                            | ** ** | **Venturers’ Capital** | ** ** | **Total**       | ** ** |
|---------------------------------------------------------------------------------------|------------|----------------------------------|------------|-----------------|------------|
| ** **                                                                            | ** ** | **Dyax**                         | ** ** | **Genzyme**     | ** ** | **Venturers’** | ** ** |
| ** **                                                                            | ** ** | **Corp.**                        | ** ** | **Corporation** | ** ** | **Capital** | ** ** |
| Balance at July  1, 2003 (commencement of operations) (unaudited)                     |       | $                                | —     |            | $          | — |   | $ | — |   |
| 2003 capital  contributions (unaudited)                                               |       | 3,060                            |       | 3,058           |       | 6,118 |   |
| July 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             |       | 1,655 |   |
|                                                                                  |       |                             |       |            |       |   |   |
| 2004 capital  contributions (unaudited)                                               |       | 5,425                            |       | 5,423           |       | 10,848 |   |
| 2004 net loss  (unaudited)                                                            |       | (5,999                           | )          | (5,997          | )          | (11,996 | ) |
| Balance at  December 31, 2004 (unaudited)                                             |       | 254                              |       | 253             |       | 507 |   |
|                                                                                  |       |                             |       |            |       |   |   |
| 2005 capital  contributions                                                           |       | 12,481                           |       | 12,476          |       | 24,957 |   |
| 2005 net loss                                                                         |       | (11,953                          | )          | (11,947         | )          | (23,900 | ) |
| Balance at  December 31, 2005                                                         |       | 782                              |       | 782             |       | 1,564 |   |
|                                                                                  |       |                             |       |            |       |   |   |
| 2006 capital  contributions                                                           |       | 9,828                            |       | 9,824           |       | 19,652 |   |
| 2006 net loss                                                                         |       | (10,352                          | )          | (10,348         | )          | (20,700 | ) |
| Balance at December 31,  2006                                                         |       | $                                | 258        |            | $          | 258 |   | $ | 516 |   |

 

*The accompanying notes are an integral part of these financialstatements.*

 

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**Dyax-Genzyme LLC(A Development Stage Enterprise)****Notesto Financial Statements**

**A.          Nature of Business andOrganization**

Dyax-GenzymeLLC, or the Joint Venture, is a limited liability company organized under thelaws of the State of Delaware.  The JointVenture is owned:

·                  50.01% by Dyax Corp., which is referred to asDyax; and

·                  49.99% by Genzyme Corporation, which isreferred to as Genzyme.

Dyaxand Genzyme are collectively referred to as the Venturers and individually as aVenturer.  The Joint Venture wasorganized in June 2003 to develop and commercialize DX-88, one of Dyax’sproprietary compounds for the treatment of chronic inflammatory diseases.  The Joint Venture commenced operations as ofJuly 1, 2003.

In October 1998, the Venturers entered into acollaboration agreement to develop and commercialize DX-88 for the treatment ofchronic inflammatory diseases.  Underthis agreement, which was amended on May 31, 2002, and again effective asof September 30, 2003, Dyax was initially responsible for all expensesincurred in connection with the development of DX-88 for the treatment ofhereditary angioedema, or HAE, through the completion of the first Phase IIclinical 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 Genzymeexercised its option under the collaboration agreement to join Dyax in thedevelopment 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 thecollaboration agreement, as amended,:

·                  theVenturers jointly owned the rights to DX-88 for the treatment of HAE and otherchronic inflammatory diseases.  Dyax wasresponsible for 50.01% and Genzyme was responsible for 49.99% of all costsincurred in connection with the development of DX-88 for HAE after completionof the first Phase II clinical trial;

·                  allresearch and development expenses incurred by each Venturer related to the HAEprogram were billed to and reimbursed by the Joint Venture;  and

·                  Dyaxand Genzyme were required to make monthly capital contributions to the JointVenture to fund budgeted operating costs. If either Dyax or Genzyme had failed to make two or more of the monthlycapital contributions, and the other party did not exercise its right toterminate the collaboration agreement or compel performance of the fundingobligation, the defaulting party’s percentage interest in the Joint Venture andfuture funding responsibility would have been adjusted proportionately.

In August 2006, Dyax, Genzyme and the JointVenture entered into an Agreement Regarding Validation Campaign, effective asof July 1, 2006.  The agreement provided that Dyax would assume responsibilityfor the first $14.5 million of manufacturing costs for a series of consecutivemanufacturing batches, known as the validation campaign, which began in thefourth quarter of 2006 and were intended to validate the manufacturing processof DX-88 for regulatory purposes and be used for further clinicalstudies.  All subsequent costs would have been the responsibility of theJoint Venture.  Ownership and control of the first $14.5 million of thedrug substance would have been retained by Dyax; the remaining portion wouldhave been owned and controlled by the Joint Venture.  This arrangement wasintended to ensure Dyax an adequate supply of DX-88 drug substance for programsoutside of the Joint Venture, specifically its DX-88 for the prevention of bloodloss during certain on-pump cardiothoracic surgery program.  Upon request,Dyax would have supplied drug substance to the Joint Venture at cost plus apremium at which point the cost would have become a Joint Venture programexpense, which would have been shared equally by Dyax and Genzyme.

On February 20, 2007, the Venturers reached amutual agreement to terminate their collaboration for the development andcommercialization of DX-88 for the treatment of HAE.  Pursuant to thetermination agreement, Genzyme made a $17.0 million cash payment toDyax-Genzyme LLC, and Genzyme assigned its 49.99% interest in the Joint Ventureto Dyax in exchange for 4.4 million shares of Dyax common stock.  As a result of acquiring Genzyme’s interestin the Joint Venture, Dyax now owns all of the assets of the Joint Venture,including a 100% ownership of DX-88 worldwide.

TheSteering Committee of the Joint Venture serves as the governing body of theJoint Venture and is responsible for determining the overall strategy for theprogram, coordinating activities of the Venturers as well as performing othersuch functions as appropriate.  TheSteering Committee is comprised of an equal number of representatives of eachVenturer.

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**Dyax-Genzyme LLC(A Development Stage Enterprise)****Notesto Financial Statements (Continued)**

**B.    Summary of SignificantAccounting Policies**

**Basis of presentation**

TheJoint Venture is considered a partnership for federal and state income taxpurposes. As such, items of income, loss, deductions and credits flow throughto the Venturers.  The Venturers haveresponsibility for the payment of any income taxes on their proportionate shareof 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 significantsubsidiary to Dyax  and, as a result,audited financial statements are presented for those periods. As ofDecember 31, 2004, for the year ended December 31, 2004 and for the periodfrom July 1, 2003 (commencement of operations) to December 31, 2003, the JointVenture does not meet the criteria of a significant subsidiary to either Dyaxor Genzyme and, as a result, the financial statements for those periods havenot been audited but include all normal and recurring adjustments that theVenturers consider necessary for the fair presentation of the Joint Venture’sfinancial position and operating results.

**Accounting method**

The financial statements have been preparedunder the accrual method of accounting in conformity with accounting principlesgenerally accepted in the United States of America.

**Fiscal year end**

The Venturers have determined that the fiscal year end of the JointVenture is December 31.

**Uncertainties**

TheJoint Venture is subject to risks common to companies in the biotechnologyindustry, including:

·                  theJoint Venture’s ability to successfully complete preclinical and clinicaldevelopment of its products and services;

·                  theJoint Venture’s ability to manufacture sufficient amounts of its products fordevelopment and commercialization activities and to do so in a timely andcost-effective manner;

·                  theJoint Venture’s ability to successfully obtain timely additional regulatoryapprovals and adequate patent and other proprietary rights protection of itsproducts;

·                  thescope, validity and enforceability of patents and other proprietary rights heldby third parties and their impact on the Joint Venture’s ability to commercializeits products and services;

·                  theaccuracy of the Joint Venture’s estimates of the size and characteristics ofmarkets to be addressed by the Joint Venture’s products including growthprojections;

·                  marketacceptance of the Joint Venture’s products in expanded areas of use and newmarkets; and

·                  thecontent and timing of decisions made by the United States Food and DrugAdministration, the European Agency for the Evaluation of Medicinal Productsand other regulatory agencies regarding the Joint Venture’s products andmanufacturing facilities.

**Use of estimates**

Under accounting principlesgenerally accepted in the United States of America, the Joint Venture isrequired to make certain estimates and assumptions that affect reported amountsof assets, liabilities, revenues, expenses, and disclosure of contingent assetsand liabilities in its financial statements. The Joint Venture’s actual results could differ from these estimates.

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**Dyax-Genzyme LLC(A Development Stage Enterprise)****Notesto Financial Statements (Continued)**

**B.    Summary of SignificantAccounting Policies (Continued)**

**Cash****and cash equivalents**

All of the Joint Venture’scash 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 costand accumulated depreciation and amortization from the related accounts on itsbalance sheet and includes any resulting gain or loss in its statement ofoperations.

The Joint Venture generally computesdepreciation for its equipment using the straight-line method over theestimated useful lives of the equipment, which is 7 years.

**Comprehensive Loss**

TheJoint Venture reports comprehensive income (loss) in accordance with FinancialAccounting Standards Board Statement of Financial Accounting Standards No. 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 suchperiod.

**Transactions with affiliates**

The majority of the Joint Venture’s operatingexpenses consist of project expenses incurred by the Venturers, either forinternal operating costs or for third-party obligations incurred by theVenturers on behalf of the Joint Venture which are then charged to the JointVenture.  All charges to the JointVenture are subject to approval by the Steering Committee.  The determination of the amount of internal operatingcosts incurred by each Venturer on behalf of the Joint Venture requiressignificant judgment by each Venturer. As a result, the financial statements for the Joint Venture may not beindicative of the results that would have occurred had the Joint Ventureobtained all of its research and development and operating services fromthird-party entities.  The Joint Ventureowed Dyax $1.4 million and Genzyme $0.5 million as of December 31, 2006 andowed 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**

Researchand development costs are expensed in the period incurred. These costs areprimarily comprised of development efforts performed by the Venturers orpayments to third parties made by the Venturers, both on behalf of the JointVenture, during the respective periods.

**Income taxes**

TheJoint Venture is organized as a pass-through entity; accordingly, the financialstatements do not include a provision for income taxes.  Taxes, if any, are the liability of Dyax andGenzyme, as Venturers.

**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 $1.0 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.

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**Dyax-Genzyme LLC(A Development Stage Enterprise)****Notes to Financial Statements (Continued)**

**D.****        ****Lab Equipment (amounts inthousands)**

|                          | ** ** | **December 31,** | ** ** |
|--------------------------|------------|-----------------------|------------|
| ** **               | ** ** | **2006**              | ** ** | **2005** | ** ** |
|                     |       |                  |       |   |   |
| Lab equipment            |       | $                     | 708        |   | $ | 708 |   |
| Accumulated depreciation |       | (194                  | )          | (93 | ) |
| Lab equipment, net       |       | $                     | 514        |   | $ | 615 |   |

 

The Joint Venture’sdepreciation expense was $0.1 million in 2006 and 2005.

**E.****          ****Venturers’ Capital**

As of December 31, 2006, Venturers’ capital iscomprised of capital contributions made by the Venturers to fund budgeted costsand expenses of the Joint Venture in accordance with the collaborationagreement, net of losses allocated to the Venturers.  Prior to termination of the collaborationagreement, effective February 20, 2007, all funding is provided 50.01% by Dyaxand 49.99% by Genzyme.  As of December31, 2006, Dyax provided a total of $30.8 million of funding and Genzymeprovided a total of $30.8 million of funding to the Joint Venture.

**F.****          ****Commitments and Contingencies**

The Joint Venture may becomesubject to legal proceedings and claims arising in connection with itsbusiness.  There were no asserted claimsagainst the Joint Venture as of December 31, 2006 or 2005.

**G.****        ****Segment Information**

The Joint Venture operates inone business segment—human therapeutics.

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