<PAGE>   1
                                                                    Exhibit 99.1

                                   RENAGEL LLC

                              FINANCIAL STATEMENTS

                               FOR THE YEARS ENDED
                       DECEMBER 31, 1999 AND 1998 AND THE
                     PERIOD JUNE 6, 1997 (DATE OF INCEPTION)
                            THROUGH DECEMBER 31, 1997


<PAGE>   2


                                   RENAGEL LLC

                          INDEX TO FINANCIAL STATEMENTS



<TABLE>
<S>                                                                                          <C>
                                                                                             PAGE(S)
                                                                                             -------


Report of Independent Accountants                                                               1

Balance Sheets as of December 31, 1999 and 1998                                                 2

Statements of Operations for the years ended December 31, 1999 and 1998 and
the period June 6, 1997 (date of inception) through December 31, 1997                           3

Statements of Changes in Venturers' Capital for the years ended December 31, 1999
and 1998 and the period June 6, 1997 (date of inception) through December 31, 1997              4

Statements of Cash Flows for the years ended December 31, 1999 and 1998 and the
period June 6, 1997 (date of inception) through December 31, 1997                               5

Notes to Audited Financial Statements                                                         6-10
</TABLE>




                                       1


<PAGE>   3


                        REPORT OF INDEPENDENT ACCOUNTANTS




To the Steering Committee of

RenaGel LLC:



In our opinion, the accompanying balance sheets and the related statements of
operations, of cash flows and of changes in Venturers' capital present fairly,
in all material respects, the financial position of RenaGel LLC at December 31,
1999 and 1998, and the results of its operations and its cash flows for the
years ended December 31, 1999 and 1998, in conformity with accounting principles
generally accepted in the United States. 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 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 management, and evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for the opinion expressed above. The financial statements of RenaGel LLC for the
period from June 6, 1997 (date of inception) through December 31, 1997 were
audited by other independent accountants whose report dated February 9, 1998
expressed an unqualified opinion on those statements.





                                              /s/ PricewaterhouseCoopers LLP

Boston, Massachusetts
February 22, 2000



                                       2

<PAGE>   4


                                   RENAGEL LLC
                                 BALANCE SHEETS
                           DECEMBER 31, 1999 AND 1998
                                 (IN THOUSANDS)



                                                           1999           1998
                                                           ----           ----
                   ASSETS
Current assets:
  Cash and cash equivalents                             $  7,855       $  1,140
  Trade accounts receivable, net                           2,693          2,213
  Inventory                                               11,751          6,577
  Prepaid expenses and other current assets                  421             --
                                                        --------       --------
Total current assets                                      22,720          9,930

Fixed assets:
    Equipment                                              6,601          6,540
    Accumulated depreciation                              (1,352)          (395)
                                                        --------       --------
    Equipment, net                                         5,249          6,145
    Construction-in-progress                               1,930            600
                                                        --------       --------
Total fixed assets                                         7,179          6,745

Intangible assets, net                                       786            464
                                                        --------       --------

Total assets                                            $ 30,685       $ 17,139
                                                        ========       ========

             LIABILITIES AND VENTURERS' CAPITAL
Current liabilities:
  Accounts payable                                      $  3,649       $  2,855
  Due to Venturers                                         2,806          3,345
  Deferred revenue                                            --          1,947
  Accrued expenses                                         1,638             --
                                                        --------       --------
Total current liabilities                                  8,093          8,147

Commitments and contingencies

Venturers' capital:
  Capital contributions                                   58,182         28,708
  Accumulated deficit                                    (35,590)       (19,716)
                                                        --------       --------
Total Venturers' capital                                  22,592          8,992
                                                        --------       --------
Total liabilities and Venturers' capital                $ 30,685       $ 17,139
                                                        ========       ========


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


                                       3
<PAGE>   5


                                   RENAGEL LLC
                            STATEMENTS OF OPERATIONS
               For the years ended December 31, 1999 and 1998 and
             for the period June 6, 1997 (date of inception) through
                                December 31, 1997
                                 (in thousands)





                                               1999          1998         1997
                                               ----          ----         ----

Revenues:
    Net product sales                       $ 19,543      $    266      $    --
    Research and development                   1,557            --           --
                                            --------      --------      -------
Total revenues                                21,100           266

Operating costs and expenses:
    Cost of products sold                      7,362           113           --
    Selling, general and administrative       18,624         6,493           35
    Research and development                  11,154         8,778        4,588
                                            --------      --------      -------
Total operating costs and expenses            37,140        15,384        4,623
                                            --------      --------      -------


Operating loss                               (16,040)      (15,118)      (4,623)

Other income:
    Interest income                              166            22            3
                                            --------      --------      -------

Net loss                                    $(15,874)     $(15,096)     $(4,620)
                                            ========      ========      =======





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



                                       4

<PAGE>   6


                                   RENAGEL LLC
                   STATEMENTS OF CHANGES IN VENTURERS' CAPITAL
               For the years ended December 31, 1999 and 1998 and
             for the period June 6, 1997 (date of inception) through
                                December 31, 1997
                                 (in thousands)



                                                                        Total
                               GelTex                 Genzyme         Venturers'
                         PHARMACEUTICALS, INC.      CORPORATION        CAPITAL
                         ---------------------      -----------       ---------

Balance at June 6, 1997           $     --           $    --          $     --

Capital contributions                4,899             4,899             9,798
Net loss                            (2,310)           (2,310)           (4,620)
                                  --------           -------          --------


Balance at December 31, 1997         2,589             2,589             5,178


Capital contributions                8,780            10,130            18,910
Net loss                            (7,548)           (7,548)          (15,096)
                                  --------           -------          --------

Balance at December 31, 1998         3,821             5,171             8,992

Capital contributions               15,412            14,062            29,474
Net loss                            (7,937)           (7,937)          (15,874)
                                  --------           -------          --------

Balance at December 31, 1999      $ 11,296           $11,296          $ 22,592
                                  ========           =======          ========








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



                                       5
<PAGE>   7


                                   RENAGEL LLC
                            STATEMENTS OF CASH FLOWS
               For the years ended December 31, 1999 and 1998 and
             for the period June 6, 1997 (date of inception) through
                                December 31, 1997
                                 (in thousands)



<TABLE>
<CAPTION>
                                                                    1999            1998          1997
                                                                    ----            ----          ----
<S>                                                               <C>            <C>            <C>
   Operating activities:
Net loss ...................................................      $(15,874)      $(15,096)      $(4,620)
Reconciliation of net loss to net cash used
  in operating activities:
    Depreciation and amortization ..........................         1,135            431            --
    Provision for bad debt .................................           180             --            --
    Provision for sales returns ............................           202             --            --
    Write-off of facility design costs .....................         1,250             --            --

Increase (decrease) in cash from changes in working capital:
    Trade accounts receivable ..............................          (862)        (2,213)           --
    Inventory ..............................................        (5,174)        (6,577)           --
    Prepaid expenses and other current assets ..............          (421)           102          (102)
    Due to Venturers .......................................          (539)         1,546         1,799
    Accounts payable, accrued expenses and
          deferred revenue .................................           485          4,802            --
                                                                  --------       --------       -------

    Net cash used in operating activities ..................       (19,618)       (17,005)       (2,923)

Investing activities:
  Purchases of equipment ...................................        (2,641)        (2,375)       (4,765)
  Purchase of technology license ...........................          (500)          (500)           --
                                                                  --------       --------       -------

    Net cash used in investing activities ..................        (3,141)        (2,875)       (4,765)

Financing activities:
  Capital contributions ....................................        29,474         18,910         9,798
                                                                  --------       --------       -------

    Net cash provided by financing activities ..............        29,474         18,910         9,798
                                                                  --------       --------       -------

Increase (decrease) in cash and equivalents ................         6,715           (970)        2,110
Cash and equivalents at beginning of period ................         1,140          2,110            --
                                                                  --------       --------       -------
Cash and equivalents at end of period ......................      $  7,855       $  1,140       $ 2,110
                                                                  ========       ========       =======
</TABLE>



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


                                       6

<PAGE>   8


                                   RENAGEL LLC
                          NOTES TO FINANCIAL STATEMENTS


1.     NATURE OF BUSINESS AND ORGANIZATION:

       RenaGel LLC (the "Joint Venture") is a limited liability company
       organized under the laws of the State of Delaware. The Joint Venture is
       owned 50% by GelTex Pharmaceuticals, Inc. ("GelTex") and 50% by Genzyme
       Corporation ("Genzyme"), which are hereafter referred to together as the
       "Venturers". The Joint Venture was organized in June 1997 to function as
       a joint venture between the Venturers for the final development and
       commercialization of Renagel(R) Capsules (sevelamer hydrochloride)
       ("Renagel(R) Capsules"), and other potential collaboration products.
       Marketing approval for Renagel(R) Capsules was granted by the U.S. Food
       and Drug Administration in October 1998, and the Joint Venture began the
       sale and distribution of Renagel(R) Capsules in November 1998. The
       Steering Committee of the Joint Venture is comprised of representatives
       of each Venturer. The Steering Committee 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.



  2.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

       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. Certain prior year information has been reclassified
       to conform with the current year's presentation.

       USE OF ESTIMATES
       The preparation of financial statements in conformity with generally
       accepted accounting principles requires management to make certain
       estimates and assumptions that affect the reported amounts of assets and
       liabilities and disclosure of contingent assets and liabilities at the
       date of the financial statements and the reported amounts of revenues and
       expenses during the reported period. Actual results could differ from
       those estimates.

       CASH AND CASH EQUIVALENTS
       Cash and cash equivalents, consisting principally of money market funds
       and municipal notes purchased with initial maturities of three months or
       less, are valued at cost plus accrued interest, which approximates
       market.

       INVENTORY
       Inventory is valued at the lower of cost (first-in, first-out method) or
       market.




                                    Continued


                                       7
<PAGE>   9

                                   RENAGEL LLC
                          NOTES TO FINANCIAL STATEMENTS


       FIXED ASSETS
       Equipment is stated at cost and is being depreciated using the
       straight-line method over an estimated useful life of seven years.
       Certain costs incurred for products expected to be commercialized are
       capitalized to construction-in-progress. Capitalization of such costs
       begins when the product and related process are deemed to have
       demonstrated technological feasibility and ends when the related assets
       are substantially complete and ready for their intended use. For the
       years ended December 31, 1999 and 1998, the Joint Venture had equipment
       depreciation expense of $957,000 and $395,000, respectively. There was no
       depreciation expense for the period from June 6, 1997 (date of inception)
       through December 31, 1997.

       Construction-in-progress at December 31, 1999 and 1998 of $1,930,000 and
       $350,000, respectively, are comprised of progress payments for the Joint
       Venture's plant expansion project.  As of December 31, 1999, there were
       no further costs expected to complete this project.  The additional
       production equipment was placed in service in January 2000.

       During the years ended December 31, 1999 and 1998, the Joint Venture
       incurred $1,000,000 and $250,000, respectively, of design costs related
       to further expansion of the Joint Venture's manufacturing facilities.  At
       December 31, 1998, $250,000 of these costs were included in
       construction-in-progress.  In December of 1999, the Joint Venture elected
       not to further expand the existing manufacturing facilities and
       therefore, the $1,250,000 of capitalized costs were written-off as
       research and development expense.  The decision not to expand the
       manufacturing facility was due to the Joint Venture selecting Genzyme to
       manufacture the active ingredient Renagel(R) Capsules.

       INTANGIBLE ASSETS
       Intangible assets consist of licensed technology rights, which are stated
       at cost and amortized using the straight-line method over an estimated
       life of seven years.

       As of December 31, 1999 and 1998, accumulated amortization of
       intangible assets were $214,000 and $36,000, respectively.

       TRANSACTIONS WITH AFFILIATES
       The majority of the Joint Venture's operating expenses are from payments
       to the Venturers for project expenses incurred, either as internal
       operating costs or as third-party obligations incurred on behalf of the
       Joint Venture. At December 31, 1999 and 1998, the Joint Venture owed
       $2,806,000 and $3,345,000, respectively, to the Venturers for project
       expenses and other costs, including inventory, fixed assets, incurred by
       the Venturers 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, on behalf of the Joint Venture, or payments to third parties
       made by the Venturers, 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 Genzyme and GelTex, as Venturers.

                                   Continued



                                       8

<PAGE>   10


                                   RENAGEL LLC
                          NOTES TO FINANCIAL STATEMENTS


       UNCERTAINTIES
       The Joint Venture is subject to risks common to companies in the
       biotechnology industry, including (i) the accuracy of the Joint Venture's
       estimates of size and characteristics of markets addressed or to be
       addressed by the Joint Venture's products, (ii) market acceptance of the
       Joint Venture's products, (iii) the Joint Venture's ability to obtain
       reimbursement of its products from third-party payers, where appropriate,
       (iv) the ability of the Joint Venture to obtain and maintain adequate
       patent and other proprietary rights protection for its products, (v) the
       ability of the Joint Venture and its contract manufacturers to produce
       sufficient quantities of its products at a cost acceptable for
       development and commercialization activities, (vi) the ability of the
       Joint Venture to obtain timely regulatory approval for its products and
       the timing and content of decisions made by regulatory authorities, (vii)
       the accuracy of the Joint Venture's information concerning resources of
       competitors and potential competitors and (viii) the results of clinical
       trials and other development activity.

       REVENUE RECOGNITION
       Product revenue is recognized when goods are shipped and title has passed
       and is net of third party allowances and rebates, as applicable. During
       1998, the Joint Venture made sales to wholesalers which had terms other
       than the Joint Venture's standard payment and discount terms. For these
       sales, revenue was recognized when the product was sold by wholesalers to
       end-users. As of December 31, 1998, $1,947,000 of revenue was deferred
       related to 1998 shipments of product with extended payment terms which
       had not been sold by the wholesaler by year-end. There were no sales to
       wholesalers during 1999 which had terms other than the Joint Venture's
       standard payment and discount terms, and therefore, no revenue was
       deferred as of December 31, 1999.

       Research and development revenue relates to development payments received
       pursuant to collaborative arrangements.  Revenue is recognized by the
       Joint Venture when services are performed and all performance obligations
       have been met.

3.     ACCOUNTS RECEIVABLE

       The Joint Venture's trade receivables primarily represent amounts due
       from healthcare product distributors. The Joint Venture performs ongoing
       credit evaluations of its customers and generally does not require
       collateral. Accounts receivable are stated at fair value after reflecting
       the allowance for doubtful accounts of $180,000 and the allowance for
       sales returns of $202,000 at December 31, 1999. The was no allowance for
       doubtful accounts or allowance for sales returns at December 31, 1998.



                                   Continued


                                       9

<PAGE>   11


                                   RENAGEL LLC
                          NOTES TO FINANCIAL STATEMENTS


4.     INVENTORIES

       Inventories as of December 31, 1999 and 1998 were comprised of work in
       progress of $8,077,000 and $3,988,000, respectively and finished goods of
       $3,674,000 and $2,589,000, respectively. Approximately $892,000 of
       finished goods at December 31, 1998 related to product shipped to
       wholesalers in 1998 for which revenue was deferred as of December 31,
       1998. Such product was held at the wholesalers at December 31, 1998.
       There was no revenue deferred as of December 31, 1999.

5.     ACCRUED EXPENSES

       Accrued  expenses  at  December  31,  1999  consisted  of accrued
       rebates of  $981,000  and  accrued  sales commissions of $651,000.

6.     VENTURERS' CAPITAL

       As of December 31, 1999 and 1998, 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. As of
       December 31, 1998 there was an unpaid capital contribution of $1,349,000
       owed to the Joint Venture by GelTex, which was netted against 1998
       Venturers' capital in the accompanying financial statements. This amount
       was subsequently paid in January 1999. There were no unpaid capital
       contributions owed to the Joint Venture from either Venturer as of
       December 31, 1999.

7.     FINANCIAL INFORMATION BY GEOGRAPHIC AREA AND SIGNIFICANT CUSTOMERS AND
       SUPPLIERS

       The Joint Venture operates in the human healthcare industry and
       manufactures and markets its products in the United States. The Joint
       Venture's principal manufacturing facilities are located in the United
       States. The Joint Venture purchases substantially all of its raw material
       from one supplier and is highly dependent upon the manufacturing
       capabilities of that supplier.


                                   Continued


                                       10

<PAGE>   12


                                   RENAGEL LLC
                          NOTES TO FINANCIAL STATEMENTS


8.     COMMITMENTS AND CONTINGENCIES

       GelTex entered into a Contract Manufacturing Agreement with Dow Chemical
       Company. This agreement requires the Joint Venture to purchase minimum
       quantities of product. The minimums are based upon the Joint Venture's
       estimated product requirements and are subject to increase as product
       sales increase and as the manufacturer increases capacity of the product.
       Additionally, the Joint Venture and Genzyme have entered into a contract
       manufacturing agreement dated January 1, 1998, under which Genzyme will
       manufacture a portion of the Joint Venture's minimum supply requirements
       of product. This agreement also requires the Joint Venture to purchase
       minimum quantities of product. These minimums are based upon the Joint
       Venture's estimated product requirements.

9.     SUBSEQUENT EVENTS

       In February 2000, the European Commission granted marketing approval in
       Europe for Renagel(R) Capsules. The marketing approval is valid in the
       fifteen member states of the European Union. Also in February 2000, the
       Health Protection Branch of the Canadian Government granted marketing
       approval in Canada for Renagel(R) Capsules. The Joint Venture began
       marketing Renagel(R) Capsules in Europe and Canada in March 2000.


                                       11