Genzyme Misses Estimates, Blames Dilution

Genzyme General reported higher fourth-quarter profits but lower earnings per share as a result of the biotech firm issuing new stock for acquisitions.

Profits in the fourth quarter totaled $63.3 million, before amortization and items, compared with $58.3 million in the fourth quarter last year.

But Genzyme reported fourth-quarter earnings of 29 cents a share, lower than last year's 31 cents and a penny shy of Wall Street consensus estimates. The company said the lower earnings per share were the result of a higher share count after a December acquisition.

Revenue in the quarter rose 31% to $265.2 million, compared with $203 million in the year-earlier quarter. Sales of the company's lead drug, Renagel, totaled $55.6 million in the quarter, compared with $23.9 million a year earlier.

Shares of Genzyme were up 69 cents to $44.97 in recent trading.