Genzyme Corporation (NASDAQ: GENZ) reported results for the first quarter of 2008, which featured excellent revenue growth, continued operating leverage, a significant increase in non-GAAP profit, and strong progress across the company. First-Quarter Highlights
- Total revenue for the quarter grew 25 percent to $1.1 billion from $883.2 million in same period a year ago. This increase was driven by growth across all product lines, led by strong growth in sales of treatments for lysosomal storage disorders and renal disease. Genzyme's top line now includes sales of Aldurazyme® (laronidase), which previously were recorded as joint venture revenue.
- GAAP net income in the first quarter was $145.3 million, or $0.52 per diluted share, compared with $158.2 million, or $0.57 per diluted share. GAAP net income in this year's first quarter reflects an after-tax charge of $56.5 million for the premium related to Genzyme's strategic investment in Isis Pharmaceuticals Inc.
- Non-GAAP net income increased 24 percent to $260.9 million, compared with $210.7 million in the first quarter a year earlier. Non-GAAP earnings increased 22 percent to $0.95 per diluted share from $0.78 per diluted share in the first quarter last year.
- Non-GAAP operating expenses decreased as a percentage of revenue, reflecting global operating leverage.
- Genzyme continued to generate significant cash from operations and to reinvest in the future of the company. In the first quarter, Genzyme generated approximately $373 million in cash from net income prior to one-time events and proceeds from the issuance of common stock. The company invested approximately $122 million in capital projects to expand manufacturing capacity to meet current and anticipated product demand. The company also made a $150 million investment in Isis Pharmaceuticals associated with the license of mipomersen, a highly promising product candidate in late-stage development.
- Genzyme is also using a portion of its operating cash flow to repurchase shares under a three-year program to reduce the dilutive effect of equity compensation. The company repurchased 1 million shares in the first quarter and has repurchased approximately 4.5 million shares since this program began one year ago.
"We had a very strong first quarter to start the year," said Henri A. Termeer, Genzyme's chairman and chief executive officer. "We continue to focus on our commitment to deliver 20 percent non-GAAP earnings growth through 2011, while building the company to ensure that we sustain our growth over the longer term."
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 2007 revenues of $3.8 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 diagnostic testing. Genzyme's commitment to innovation continues today with a substantial development program focused on these fields, as well as immune disease, cardiovascular disease, and other areas of unmet medical need.
Genzyme's press releases and other company information are available at www.genzyme.com.