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Genzyme Delivers Earnings Beat

The biotech company beats Wall Street estimates by 3 cents a share.



beat estimates on strong sales and reaffirmed its product-launch and long-term earnings outlooks Wednesday.

The biotech company reported that GAAP net income rose to $159.3 million, or 58 cents a share, compared with $16 million, or 6 cents a share, in the quarter a year ago.

Excluding items, Genzyme earned $241 million, or 90 cents a share, vs. $195.9 million, or 73 cents a share, in the year-ago quarter. Analysts surveyed by Thomson Financial were looking for 87 cents a share on revenue of $954 million. The company reported a 19% increase in revenue to $960.2 million from $808.6 million in the year-ago period.

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Sales of Renagel for chronic kidney disease rose 14% to $154.2 million. Sales of Myozyme for Pompe disease rose to $53.6 million from $20.4 million in the same period a year ago; sales of Fabrazyme Fabry disease increased 12% year over year to $104.6 million; and sales of Guacher disease drug Cerezyme grew 13% to $286.1 million.

Genzyme also reported a 20% increase in the sale of Thyrogen, an injection used by thyroid cancer patients while they are off hormones for periods of necessary testing -- $26.8 million compared to $22.4 million in the year-ago period. Genzyme said it expects approval for the injection's use in thyroid cancer remnant ablation procedures this year.

The company's genetics revenue also saw a double-digit increase, 19% to $73.1 million.

Looking ahead, Genzyme expects annual non-GAAP earnings of $4 a share in 2008 and of $7 a share by 2011. The company previously predicted that its non-GAAP earnings will compound at an average of 20% from 2006 to 2011.

Genzyme said it's preparing to launch Elaprase in Japan for Hunter syndrome and cholesterol-lowering agent Cholestage in the European Union. It expects to launch Renvela for chronic kidney disease patients on dialysis, in the first quarter of 2008.

Shares rose $2.67, or 3.6%, to $76.18 in recent trading.