Genzyme Corporation (NASDAQ: GENZ) today reported financial results for the full year and fourth quarter of 2007 and provided an outlook for continued strong growth in 2008 and beyond. Full-Year 2007
- Total revenue in 2007 increased 20 percent to $3.8 billion from $3.2 billion in 2006. The increase was broadly driven by growth across all segments of the company.
- GAAP net income was $480.2 million, or $1.74 per diluted share, compared with a net loss of $16.8 million, or $0.06 per diluted share, for the previous year.
- Non-GAAP net income increased 27 percent to $939.9 million, compared with $742.7 million in 2006.
- Non-GAAP earnings increased 25 percent to $3.47 per diluted share from $2.77, exceeding the increased guidance of $3.35-$3.40 that Genzyme provided in July.
- The company generated approximately $1 billion in cash from operations and increased its ending cash position to $1.5 billion while completing two acquisitions, expanding its manufacturing infrastructure, and repurchasing approximately 3.5 million shares under a three-year program to reduce the dilutive effect of equity compensation.
- Genzyme also continued to make excellent progress in building its business to drive future growth. The company:
- Expanded its emerging oncology franchise by securing worldwide rights to its leukemia drug Clolar® (clofarabine) through the acquisition of Bioenvision Inc.
- Obtained marketing approval for four new productsâRenvela® (sevelamer carbonate) in the United States, Synvisc-ONE™ (hylan G-F 20) and Cholestagel® (colesevelam hydrochloride) in the European Union, and Elaprase® (idursulfase) in Japanâand secured expanded U.S. labeling for Campath® (alemtuzumab) and Thyrogen® (thyrotropin alfa for injection).
- Reported highly encouraging clinical trial results for two key late stage product candidates: Mozobil™ (plerixafor) for stem-cell transplantation and alemtuzumab for multiple sclerosis.
Fourth-Quarter 2007 Highlights
- Revenue increased 21 percent in the fourth quarter to $1.04 billion, up from $854.2 million in the prior fourth quarter.
- GAAP net income increased to $78.9 million, or $0.29 per diluted share, compared with an acquisition-related net loss of $268.2 million, or $1.02 per diluted share, in the prior fourth quarter.
- Non-GAAP net income increased 19 percent to $249.2 million, compared with $209.0 million in the previous fourth quarter.
- Non-GAAP earnings rose 18 percent to $0.91 per diluted share from $0.77. The increased operating expenses and decreased interest income associated with Genzymeâs fourth-quarter acquisition of Bioenvision reduced earnings by $0.01 per diluted share. The company had noted previously that the impact of this transaction would be reflected in its fourth-quarter results.
- Individual product sales for the fourth quarter and the year, along with expectations for the longer-term growth of Genzymeâs business segments, were detailed in a January 8, 2008, press release coinciding with the companyâs presentation at the JPMorgan Healthcare Conference.
"We delivered outstanding financial results last year while continuing to build the company to meet our goal of 20 percent compound non-GAAP earnings growth through 2011," said Henri A. Termeer, chairman and chief executive officer. "In the year ahead, we expect to continue this strong performance while investing in our future to ensure that we sustain our growth beyond 2011."
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