Genzyme Corp has posted a strong set of results for the fourth quarter of 2006, despite booking charges related to its $584 million acquisition of Canadian biotechnology firm AnorMed at the end of the last year.
Net loss was $268.2 million, or $1.02 per share, compared to net income of $106.6 million, or $0.39 per share in the same quarter a year ago, though this including a charge of $552.9 million connected with the AnorMed buy plus other stock expenses.
Revenue rose 17% to $854.2 million, a record level, driven by sales of Gaucher disease treatment Cerezyme (imiglucerase), up 13% to $261.8 million and Fabry disease drug Fabrazyme (agalsidase beta), which added $96.6 million (+18%) to the coffers.
Genzyme also made special mention of Myozyme (alglucosidase alfa), its new treatment for Pompe disease, which brought in $30 million in the quarter and it is expected to generate $155-$180 million in sales this year. Another strong contribution to turnover came from Renagel (sevelamer HCl), which treats end-stage kidney disease and was up 22% to $135.1 million.
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Genzyme forecast total 2007 sales of $3.6-$3.8 billion, and excluding the effect of the AnorMed acquisition, earnings per share should be $3.20-$3.30, up $0.10 on a forecast made at the beginning of January.
Chief executive Henri Termeer said last year was a productive one, what with the launch of Myozyme and the progression of “many promising late-stage development programs that will become highly visible during the course of this year.” He added that the firm’s strong cash flow “allowed us to absorb an acquisition that brought us an important new product candidate in Mozobil (AMD3100),” used to drive stem cells out of bone marrow into circulating blood, where they can be collected for use in a life-saving stem cell transplant in cancer patients, which is in Phase III testing.
Analysts were impressed with the figures, which were above consensus estimates, and many believe the forecasts for this are on the conservative side.
