Genzyme Financial Recovery Continues In Fourth Quarter
Genzyme Corp. (NASDAQ: GENZ) today reported that preliminary fourth-quarter revenue grew 23 percent to $1.15 billion from $938 million in the fourth quarter of 2009. For the year, revenue was $4.1 billion compared with $4.0 billion in 2009. Fourth-quarter revenue from the Personalized Genetic Health business grew 46 percent compared with the same period in 2009, and 26 percent from the third quarter of 2010. This growth reflects increasing supplies of Cerezyme ® (imiglucerase for injection) and Fabrazyme ® (agalsidase beta), and the U.S. launch of Lumizyme ® (alglucosidase alfa).
Genzyme reported these and other preliminary, unaudited revenue figures in conjunction with a presentation by Chairman and Chief Executive Officer Henri A. Termeer at the J.P. Morgan 29 th Annual Healthcare Conference in San Francisco. The company will provide full 2010 financial results and 2011 guidance on February 16.
Genzyme’s fourth-quarter non-GAAP diluted earnings per share (EPS) is expected to be $0.80 - $0.85, approximately double the third quarter non-GAAP diluted EPS of $0.42. Fourth-quarter non-GAAP diluted EPS guidance was $0.90 - $0.95. Cerezyme revenue for the quarter was lower than anticipated and gross margins were reduced due to costs associated with manufacturing operation improvements. Cerezyme revenue was impacted by the delay of orders in Brazil; a late lot release that was exacerbated by shipping delays due to December weather issues in Europe; and the loss of a specific lot for Japan. Manufacturing operation costs were impacted by consent decree compliance measures, and expenses associated with the simultaneous start-up of three operations: the new Framingham plant, the fill/finish expansion in Waterford, and the transfer of fill/finish work to a third-party manufacturer.
Based on this run rate, Genzyme now expects non-GAAP diluted EPS of $4.10 - $4.35 in 2011 and approximately $5 billion in revenue, compared with previous guidance of $4.30 - $4.60 and $5.1 billion, respectively. EPS in the first quarter of 2011 is expected to be similar to the fourth quarter of 2010. For the three-year period from 2008 to 2011, the company expects the compound annual growth rate of its non-GAAP EPS to be approximately 30 percent.
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