Genzyme (GENZ) preannounced its fourth-quarter and 2007 revenue results at the JPMorgan Healthcare conference on Tuesday, edging above estimates and saying it feels bullish about the picture ahead.
Shares of the Cambridge, Mass.-based biotechnology company, which yesterday announced a licensing deal with
, were trading down 63 cents, or 0.8%, at $76.47 midday.
For the year, Genzyme said revenue increased 20% to $3.8 billion from $3.2 billion in the prior year, while analysts surveyed by Thomson Financial were looking for $3.77 billion.
The company's quarterly revenue increased 21% to $1.04 billion vs. $854 million in the comparable year-ago period. The Street expected $989 million.
Sales of Genzyme's Renegal for patients with chronic kidney disease came in 23% higher than a year prior at $167 million for the quarter, beating Street estimates of $148 million to $165 million. Genzyme said its Renal franchise is on track to generate revenue of more than $1 billion by 2011. Renvela was approved in October for hemodialysis patients, and the company said the treatment will launch this quarter.
Sales of Gaucher's disease treatment Cerezyme also beat consensus targets with $301 million in sales for the quarter. Coming in at the top end of estimates, Fabry disease treatment Fabrazyme and Pompe disease treatment Myozyme generated sales of $114 million and $62 million, respectively.
Looking ahead, Genzyme is predicting earnings of $4 a share in 2008 and $7 a share in 2011. The 2008 number is in line with analyst estimates. The Thomson Financial consensus target is for $4 a share on revenue of $4.26 billion.
"We are on track to deliver 20 percent earnings growth through 2011, and we feel bullish as we look ahead at the picture that is unfolding for Genzyme," Chairman and CEO Henri Termeer in a release.