reported higher second-quarter earnings Wednesday, but revenue fell below Wall Street expectations and the company has reduced sales and profit expectations for the year.
The Cambridge, Mass.-based biopharmaceuticals firm said net income rose to $192.2 million, or 70 cents a share, compared with $69.6 million, or 25 cents a share, in the year-ago quarter, which was impacted by the payment of a large licensing fee.
Adjusted earnings totaled 85 cents a share, matching the Street's consensus estimate.
However, total revenue of $1.23 billion in the June quarter, up 5% year over year, was short of expectations of $1.26 billion. Genzyme's top-line performance was negatively affected by the shutdown of its manufacturing plant outside Boston due to a viral contamination. The closure of the plant cost the company $13 million in quarterly sales of its drug Cerezyme.
Genzyme shares were down 4.5% to $53.38 in recent trading.
Genzyme said the cleanup of its Boston-area manufacturing plant is complete and drug production will re-start this month.
The company reduced its 2009 revenue guidance to a range of $4.6 billion to $5 billion from $5.15 billion to $5.35 billion. The Street was currently at $4.96 billion.
Likewise, earnings guidance for the year was taken down to a range of $1.74 to $2.29 a share from $3.02 a share. On an adjusted basis, Genzyme expects 2009 earnings in the range $2.35 to $2.90 a share from $3.52 a share.
The current Street estimate for adjusted earnings stands at $2.60 per share.
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