Genzyme Corp. (NASDAQ: GENZ) reported that second-quarter revenue rose to $1.23 billion, compared with $1.17 billion in the same period a year ago, an increase of 5 percent. Including the $66 million impact of unfavorable currency exchange rates, revenue grew 11 percent in the second quarter. Results reflect $13 million in lost revenue due to the interruption of Cerezyme® (imiglucerase for injection) shipments associated with the temporary shutdown of the company's Allston manufacturing facility last month.
Second-quarter growth was driven by the reacceleration of Myozyme® (alglucosidase alfa) sales in Europe; strong U.S. launches of Synvisc-One™ (hylan G-F 20) and Mozobil® (plerixafor injection); new revenue from oncology products acquired from Bayer Healthcare; increased sales of Fabrazyme® (agalsidase beta); and double-digit growth in the company's genetic testing business.
GAAP net income rose to $192.2 million, or $0.70 per diluted share, compared with $69.6 million, or $0.25 per diluted share, in the second quarter of 2008. GAAP and non-GAAP net income in this yearâs second quarter reflect the $15.7 million cost of remediation associated with the temporary shutdown of the Allston plant and the $6.6 million impact of the fair value step-up of inventory acquired from Bayer Healthcare. GAAP net income in last year's second quarter reflects a $175 million licensing fee associated with mipomersen.
Non-GAAP net income grew to $232.5 million, or $0.85 per diluted share, compared with $107.0 million, or $0.38 per diluted share, in the same period last year. Non-GAAP net income excludes stock compensation and certain items associated with the purchase accounting for the Bayer business acquisition.
Genzyme generated approximately $281 million in cash during the second quarter, predominantly from operations. The company used approximately $157 million primarily for investments in manufacturing.
"Results for the second quarter showed the strength of our diversified business, with many newer products, such as Synvisc-One, contributing to our growth," said Henri A. Termeer, Genzyme's chairman and chief executive officer. "We are working through the Allston manufacturing interruption in a constructive way. At the same time, we are continuing to build the company for the future, making progress in our late-stage pipeline and bringing new products to patients."
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 11,000 employees in locations spanning the globe and 2008 revenues of $4.6 billion.
With many established products and services helping patients in approximately 100 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.