Genzyme (GENZ) reaffirmed its profit and revenue forecast for 2006 and said it expects to make significant progress this year on its late-stage clinical pipeline.
The biotech company made the comments in a press release also announcing that it swung to a profit in the latest fourth quarter. Genzyme's quarterly revenue rose 23% from a year ago.
Genzyme posted earnings of $106.6 million, or 39 cents a share, in the fourth quarter. A year ago, the Cambridge, Mass., company had a loss of $157.3 million, or 68 cents a share. Excluding items, Genzyme would have had a profit of $162.7 million and 60 cents a share, compared with earnings of $124.3 million and 52 cents a share in the year-ago period.
Revenue rose to $728.7 million from $591.1 million. Analysts surveyed by Thomson First Call were expecting a profit of 60 cents and revenue of $726 million.
Newer products will have an increasingly greater impact on the top line as they continue to grow, while Cerezyme sales in 2006 will represent 30% of its overall revenue, Genzyme said.
"We also expect to make significant progress in many areas within our broad late-stage clinical pipeline, where we are advancing a number of major programs that will fuel our continued growth and diversification," the company said Wednesday. "The first of these is Myozyme for patients with Pompe disease, which we expect to launch in the second quarter and which will begin to have an impact on our business later in the year."
Genzyme expects revenue of $3.1 billion to $3.3 billion this year, with earnings before items of $2.65 to $2.75 a share. Wall Street's consensus estimates are for earnings of $2.76 a share with a top line of $3.21 billion.
Revenue for Renagel, for patients with end-stage renal disease, is expected to reach $495 million to $505 million this year, compared with $417 million last year. Sales of Fabrazyme should be $370 million to $390 million this year, compared with $305 million in 2005. Genzyme expects sales of Cerezyme to grow to $970 million to $980 million in 2006 from $932 million last year. Synvisc sales are projected to be $255 million to $265 million this year vs. $219 million this past year.
Meanwhile, Genzyme believes revenue for its diagnostics and genetics business will advance to between $365 million and $375 million from $327 million in 2005.
Shares of Genzyme were down 47 cents, or 0.7%, to $67.91.