Genzyme Profit Soars from a Year Earlier
Genzyme,which makes drugs for rare and chronic diseases, reported third-quarter earnings on Wednesday that topped expectations, sending its shares up more than 3 percent in pre-market trading.
Net profit rose to $159.3 million, or 58 cents a share, from $16 million, or 6 cents a share, the year before, when the biotechnology company took an acquisition-related charge.
Revenue rose to $960.2 million from $808.6 million in the year-earlier period.
Excluding special items, the company earned 90 cents a share. Analysts had on average expected 86 cents a share, according to Reuters Estimates.
Cambridge, Massachusetts-based Genzyme said it expects adjusted earnings in 2008 of $4.00 a share. By 2011 the company said it expects to earn $7.00 a share.
The company said sales of Myozyme, a treatment for the muscle disorder Pompe disease, rose to $53.6 million, from $20.4 million a year ago.
Sales of Fabrazyme, for the treatment of the genetic disorder Fabry disease, rose 12 percent to $104.6 million, while sales of Cerezyme, for Gaucher disease, rose 13 percent to $286.1 million.
Sales of Renegal, the company's kidney disease treatment, rose 14 percent to $154.2 million.
Genzyme said that during the third quarter it generated $280 million in cash from operations, and that it is using a portion of the cash to repurchase shares under a three-year program to reduce the dilutive effect of equity compensation programs.
Since the program began in the second quarter, the company has spent $181.2 million to repurchase 2.8 million shares.
Genzyme's shares rose 4 percent to $76.50 in pre-market trading from a close of $73.51 on Nasdaq on Tuesday.