Genzyme Corp has posted a strong set of results for the third quarter of 2006, with growth being driven once again by Cerezyme, Fabrazyme and Renagel.
Net income reached $159.3 million, or $0.58 per share, up from $16 million, or $0.06 per share in the like, year-earlier period when the company took a charge related to acquisitions. Revenues rose 19% to $960.2 million, a record level, driven by sales of Gaucher disease treatment Cerezyme (imiglucerase), up 13% to $286.1 million and Fabry disease drug Fabrazyme (agalsidase beta), which added $104.6 million (+12%) to the coffers.
Genzyme also made special mention of Myozyme (alglucosidase alfa), its new treatment for Pompe disease, which brought in $53.6 million in the quarter, up 162.7%, and another strong contribution to turnover came from Renagel (sevelamer HCl), which treats end-stage kidney disease and was up 14% to $154.2 million. The results came a day after Genzyme received approval from the US Food and Drug Administration to market Renvela (sevelamer carbonate), a next-generation version of Renagel, for the control of serum phosphorus in patients with chronic kidney disease.
Bioenvision acquisition completed
The results also came out just as Genzyme finally completed its $345 million acquisition of Bioenvision after the latter firm’s stockholders voted to approve the deal at a reconvened special shareholder meeting in New York. The meeting had been reconvened after the companies won a court petition to reopen the voting after the proposal initially failed to win majority support on October 5 meeting.
A number of Bioenvision shareholders had opposed the deal, notably SCO Capital Partners which owned a 13% stake in the firm and believed that the price being paid by Genzyme was too low. At the latest meeting, however, holders of 56% of Bioenvision's shares voted in favour of the deal, representing 67% of the total shares whose holders participated in the vote.
The purchase means that Genzyme has further expanded its oncology business and gained exclusive rights to the leukaemia drug clorafabine, sold in North America as Clolar and marketed by Bioenvision in Europe as Evoltra.
Back to the financials and chief executive Henri Termeer noted that Genzyme has grown earnings at a compound average of more than 20% over the past decade, and we are committed to delivering a similarly strong rate of growth over the next five-year period. Analysts were also impressed as the results beat their estimates.