CAMBRIDGE, Mass. ( TheStreet) -- Genzyme ( GENZ) earnings and revenue fell in the second quarter as the biotech company continues to be hurt by supply shortages of key drugs due to manufacturing problems.

While Genzyme said progress is being made to restore drug supplies to normal levels by the end of the year, the company did lower earnings and revenue guidance for 2010 below current consensus levels.

Genzyme now expects adjusted earnings in the range of $1.90 to $2 a share on total revenue in the range of $4.4 billion to $4.5 billion. Going into Wednesday's announcement, the Street was expecting Genzyme to earn $2.47 on adjusted basis on total revenue of $4.95 billion.

For the second quarter, Genzyme said non-GAAP net income was $47.6 million, or 18 cents per share, compared with $226.6 million, or 82 cents per share, in the same period last year.

The Street was expected Genzyme to earn 51 cents on an adjusted basis. Charges for discarded drug material, manufacturing plant shutdowns and a write-down in the value of an investment in Isis Pharmaceuticals contributed to the sharp reduction in Genzyme's second-quarter earnings, the company said.

Total revenue in the quarter was $1.08 billion, compared to revenue of $1.23 billion in the year-ago quarter and below consensus expectations of $1.16 billion.

"This was a difficult quarter as reflected in our financial results, but based on the progress we've made with our recovery efforts, the outlook for the second half of 2010 is promising," said Genzyme CEO Henri Termeer, in a statement. . "We are encouraged by the improvements in Cerezyme and Fabrazyme manufacturing. We expect that increasing sales of these products combined with reductions in our operating costs will produce an increase in earnings during the second half of the year."

-- Reported by Adam Feuerstein in Boston.

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