Genzyme Warns on Lower Renagel Sales

Genzyme General (GENZ Quote) warned first-quarter earnings would fall below expectations due to a reduction in inventory levels of its kidney dialysis drug, Renagel.

The biotech firm says it now expects first-quarter earnings to reach a range of between 21 cents and 23 cents per share, or 10 cents below previous guidance. Analysts were expecting Genzyme to earn 33 cents per share in the first quarter, according to consensus figures compiled by Thomson Financial/First Call.

Renagel sales are expected to total $30 million in the first quarter, the company says, after wholesale inventory levels for the drug are reduced to 6 weeks from 12 weeks. Genzyme says it is taking this step in the first quarter to better meet demand for Renagel throughout the rest of the year. The company reiterated previous guidance of 2002 Renagel sales of $260 million to $280 million.

Genzyme also reaffirmed previous revenue guidance of $1.15 billion to $1.2 billion for 2002 and earnings growth of 25%.

Shares of Genzyme were off $4.29, or 8%, to $44.50 in pre-market trading Wednesday.