BiologicsFinancial

Genzyme Reports Third-Quarter Financial Results

Genzyme Corp. (NASDAQ: GENZ) today reported that third-quarter revenue was $1.06 billion, compared with $1.16 billion in the same period a year ago. Results reflect the impact of the temporary interruption in production of Cerezyme® (imiglucerase for injection) and Fabrazyme® (agalsidase beta) associated with the remediation of the company’s Allston manufacturing facility.

GAAP net income was $16.0 million, or $0.06 per diluted share, compared with $119.6 million, or $0.42 per diluted share, in the third quarter of 2008. Non-GAAP net income was $83.9 million, or $0.31 per diluted share, compared with $151.4 million, or $0.53 per diluted share, in the same period last year. Non-GAAP net income excludes purchase accounting and inventory step-up associated with the acquisition of Bayer oncology assets, and stock compensation.

GAAP and non-GAAP net income in this year’s third quarter reflect the $23.7 million pre-tax cost of the temporary Allston shutdown and related remediation costs. Net income also includes the $7.0 million pre-tax impact of a payment to acquire technology from Targeted Genetics. These expenses, along with lost Cerezyme/Fabrazyme revenue and a shift in product mix, reduced the gross margin to approximately 67 percent of revenue during the third quarter.

The company expects its 2009 non-GAAP EPS to be approximately $2.26, compared with previous guidance of $2.35 – $2.90. This reflects the decision to write off Cerezyme work-in-process material, the cost of remediating the Allston plant, and management of customer-level inventories related to the Bayer transaction.

Tags

Josh Sandberg

Josh Sandberg is the President of Ortho Spine Partners and Partner for The De Angelis Group. He also serves as Co-Founder and Editor of OrthoSpineNews.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Close
Themed By teapots