Profits Top Estimates at Genzyme

Among its kidney-disease drugs, second-quarter sales of Renagel were up 26% to $126.6 million, and sales of Hectorol, a treatment for secondary hyperparathyroidism in patients on dialysis or who have earlier stages of chronic kidney disease, were $22.4 million in the second quarter.

Genzyme gained Hectorol through its acquisition of Bone Care International last July and says it's implementing a global commercialization strategy for the drug. Executives expect Hectorol to "become an increasingly important contributor" to the company's future sales growth.

Overall, Genzyme said it saw strong earnings growth across all business lines with research and development spending increasing at a similar rate as its earnings growth. The company said on a conference call that it plans to use its strong cash position to support its pipeline, including usage extensions for its cancer drugs Campath and Clolar and potential acquisitions.

Genzyme is seeking reimbursement approvals both for patients with infantile and late-onset Pompe disease and says sales are expected to increase throughout this year and have a material impact on the company in 2007. Genzyme is seeking approval of the drug in Japan and Canada and expects to apply for approval in additional countries in the coming months.