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Genzyme's Sales Fall Short

But profits top estimates for the third quarter.

Genzyme

(GENZ)

exceeded Wall Street's earnings expectations but fell short of analysts' sales estimates for the third quarter.

Shares of Genzyme dropped 4.4% to $65.

The company earned $16 million, or 6 cents a share, compared with $115.7 million, or 43 cents a share, in the year-ago period. This year, earnings included a series of expenses that cut Genzyme's profits, including a $149.4 million charge related to the company's genetic-testing business.

Excluding certain expenses, Genzyme said it earned 73 cents a share, 2 cents ahead of what was expected by analysts surveyed by Thomson First Call.

Third-quarter revenue came in at $808.6 million, falling a bit short of the consensus expectation of $819.6 million.

"Our products across the board have good traction and momentum, and this gives us confidence that we can continue to grow the top line in a significant way based on this mix of products alone," said Genzyme Chairman and CEO Henri Termeer.

"Behind these products are late-stage programs that will drive our longer-term growth, and during the next six to 12 months many of these programs are expected to reach key milestones," he continued.

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Sales for Genzyme's Pompe disease drug Myozyme, which is expected to be a major growth driver for the company, reached $20.4 million in the third quarter, its first full quarter of sales. The drug's Canadian launch is expected next month.

For the kidney disease drug Renagel, sales grew 26% from a year ago to $134.7 million. Fabrazyme, a treatment for Fabry disease, saw sales rise 18% to $93.2 million, and revenue from Aldurazyme and Cerezyme totaled $25 million and $252.2 million, respectively.

Genzyme is currently competing with

Millennium Pharmaceuticals

(MLNM)

to acquire biopharma company

AnorMed

(ANOR)

. Late Wednesday, AnorMed said Genzyme's offer was superior to Millennium's.