Genzyme Corp. (NASDAQ: GENZ) has announced that revenue rose 13 percent in the fourth quarter of 2008 and 21 percent for the year. Fourth quarter estimated revenues were $1.17 billion, reflecting an approximate negative $39 million impact of foreign exchange, compared with $1.04 billion in the same period in 2007. For the year, revenue grew to $4.6 billion from $3.8 billion in 2007. Genzyme expects fourth quarter non-GAAP earnings per diluted share of between $1.01 and $1.04.
Genzyme reported these and other preliminary, unaudited figures in conjunction with a presentation by Chairman and Chief Executive Officer Henri A. Termeer at the JPMorgan 27th Annual Healthcare Conference in San Francisco. The company will report full financial results for 2008 on February 11.
"We made great progress during 2008 in a number of areas," said Mr. Termeer. "We delivered strong financial results, continued to grow our existing products, secured new product approvals, advanced pivotal clinical trials, and significantly strengthened our late-stage pipeline."
Mr. Termeer today detailed Genzyme's outlook for continued strong growth in 2009 and the catalysts that will drive near and long-term momentum. This year, the company expects to:
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Obtain regulatory approvals for larger-scale production of Myozyme® (alglucosidase alfa), which will help enable Genzyme to meet the rapidly increasing demand for the treatment, and provide capacity for the realization of the product's significant long-term potential.
Launch Mozobil® (plerixafor injection) in the United States and Europe, and Clolar® (clofarabine) for adult acute myelogenous leukemia in the United States, substantially expanding the company's hematologic oncology presence.
Launch Synvisc-One™ in the United States, the largest potential market for the product.
Obtain U.S. approval of a label expansion for Renvela® (sevelamer carbonate) to include the treatment of patients with chronic kidney disease who are not on dialysis, as well as E.U. approval of the treatment, significantly increasing the product's market size and long-term growth potential.
Move key late-stage products forward by completing a pivotal study of mipomersen in homozygous familial hypercholesterolemia; advancing pivotal studies of alemtuzumab for MS; initiating pivotal studies of an oral therapy for Gaucher disease; and advancing late-stage studies of Prochymal for graft vs. host disease and PTC124 for Duchenne muscular dystrophy.
Genzyme is on track to meet its goal of 20 percent compound average non-GAAP earnings growth from 2006 through 2011. For 2009, the company expects non-GAAP earnings to increase to approximately $4.70 per diluted share. Revenues for 2009 are expected to be between $5.2 and $5.4 billion. Non-GAAP earnings are projected to rise to approximately $7.00 per diluted share by 2011, and revenue that year is expected to reach $7 billion. Genzyme expects a total of 16 new regulatory approvals from 2009 through 2012, which will contribute to the company's growth beyond 2011. Genzyme currently has 12 number one products and has built its leadership role by pioneering a patient-focused, personalized medicine approach. This begins with clearly identified patient populations that have serious unmet medical needs, combined with the development of effective therapeutics, resulting in high-value products that become the standard of care. The company has built a broad global infrastructure, with its products available in approximately 100 countries, 17 manufacturing sites in 9 countries, and more than 50 percent of its revenues coming from outside the United States. The geographic diversification of Genzyme’s commercial and manufacturing operations provides competitive advantages and enables the company to manage the impact of exchange rate fluctuations. Genzyme has no debt and generates more than $1 billion in cash annually. The company utilizes this cash flow to make substantial investments in its global infrastructure, to repurchase shares and to complete strategic transactions. 2008 Performance & Long-Term Business Outlook
The Genetic Disease segment has formed the core of Genzyme's business to date, and the growth potential for this segment remains strong. Genzyme expects sales of enzyme replacement therapy products to grow at a compound average of approximately 15 percent over the five-year period from 2006-2011. At the same time, the emerging franchises of Genzyme's portfolio are expected to make an increasingly greater contribution to the company's growth, underscoring the beneficial impact of diversification. Revenue from these emerging franchises is expected to grow at a compound average of approximately 19 percent from 2006-2011. About Genzyme
One of the world's leading biotechnology companies, Genzyme is dedicated to making a major positive impact on the lives of people with serious diseases. Since 1981, the company has grown from a small start-up to a diversified enterprise with more than 10,000 employees in locations spanning the globe and 2008 revenues of $4.6 billion. In 2007, Genzyme was chosen to receive the National Medal of Technology, the highest honor awarded by the President of the United States for technological innovation. With many established products and services helping patients in nearly 90 countries, Genzyme is a leader in the effort to develop and apply the most advanced technologies in the life sciences. The company's products and services are focused on rare inherited disorders, kidney disease, orthopaedics, cancer, transplant and immune disease, and diagnostic testing. Genzyme's commitment to innovation continues today with a substantial development program focused on these fields, as well as cardiovascular disease, neurodegenerative diseases, and other areas of unmet medical need. Genzyme's press releases and other company information are available at www.genzyme.com.