Biotechnology company Genzyme Corp. (GENZ) said Tuesday its revenue for the fourth-quarter declined from last year, impacted by the product supply interruption in its genetic disease business. Nevertheless, revenues for the fourth quarter came in line with Street estimates.
Cambridge, Massachusetts-based Genzyme reported a preliminary fourth quarter revenue of $1.08 billion, down from $1.17 million in the same period last year. Twenty two analysts polled by Thomson Reuters expected the company to report revenues of $1.08 billion for the quarter.
In the prior third quarter, Genzyme reported revenues that declined 8.6% to $1.06 billion from $1.16 billion in the similar period a year ago, short of analysts' consensus revenue estimate of $1.11 billion.
Excluding revenues from its Genetic Disease business, Genzyme's fourth quarter revenue rose 24%. Genetic diseases segment, the company's major source of revenues, came down 43% to $317 million from $558 million in the same period last year. Cardiometabolic & renal segment revenues rose 7% to $259 million.
One of the smaller segment of Genzyme, hematologic oncology, reported revenue of $106 million, up 147% from $43 million last year.
Fourth-quarter sales of Synvisc were $96 million, a 40% increase over sales of $69 million in the fourth quarter of 2008. Sales of Renvela and Renagel increased to $179 million from $169 million in the prior year quarter.
Sales of Cerezyme for the quarter was $106 million, a significant decline from $306 million in the same period in 2008. Fabrazyme sales for the quarter were $59 million, down significantly from $126 million in the fourth quarter of 2008.
For the full year, the company's revenue dropped to $4.5 billion from $4.6 billion a year earlier. Excluding the Genetic Disease business, Genzyme reported full-year revenue increase of 15%.
Revenue for the year was in part helped by the launch of two new products, Synvisc-One - hylan G-F 20, which enabled a 25% increase in total sales of Synvisc - hylan G-F 20. Mozobil or plerixafor injection generated revenue of $55 million, ahead of the $40-$50 million guidance range.
Full year Synvisc sales improved 25% to $329 million from $263 million in the previous year. Renvela and Renagel sales were $707 million, compared with $678 million in 2008. Growth was driven by the E.U. launch of Renvela approved in June. Cerezyme sales for the year plunged to $793 million from $1.2 billion reported in the previous year. For the year, Fabrazyme sales were $431 million, compared with $494 million in the previous year.
Commenting on the results Chairman and Chief Executive Officer, Henri Termeer said, "We are managing through the supply interruption, getting beyond it, and moving into a period of recovery. We are fundamentally strengthening the company, and in the coming year we will focus on building on our core capabilities, enhancing our leadership position in the genetic disease area, and advancing new products that will drive our growth beyond 2011."
As part of its diversification strategy, the company said it now has has 12 number-one products across a variety of medical areas. Genzyme indicated an increase in investments of its genetic disease business segment, in an effort to raise its sales force, add manufacturing capacity, and build its product pipeline.
GENZ is currently trading at $52.97, down $0.73 or 1.36% on a volume of 2.8 million shares on the Nasdaq.
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