Raises Non-GAAP Earnings Guidance for the Year
CAMBRIDGE, Mass., April 25 /PRNewswire-FirstCall/ -- Genzyme
Corporation (Nasdaq: GENZ) reported today that first-quarter revenue
increased 21 percent to a record $883.2 million, up from revenue of $730.8
million in the same period a year ago. The increase was driven by strong
growth across most product areas.
GAAP net income rose 57 percent in the quarter to $158.2 million, up
from $101.0 million in last year's first quarter, reflecting higher
revenue, an improved gross margin, and continued expense control. GAAP
earnings rose 54 percent to $0.57 per diluted share, up from $0.37.
Non-GAAP net income in the first quarter grew 35 percent to $210.7
million, compared with $156.5 million in the same period last year.
Non-GAAP earnings grew 33 percent to $0.78 per diluted share, compared with
$0.59 in the first quarter a year ago. Non-GAAP figures exclude a gain on
the sale of an investment, along with amortization and stock-compensation
expenses and the effect of contingent convertible debt.
Genzyme is confident that it will sustain this strong performance
through the year and is therefore increasing its non-GAAP earnings guidance
for 2007 to $3.20-$3.30 per diluted share, up from previous guidance of
$3.05-$3.15 per diluted share. With this increase, the company will fully
absorb the dilution created by last year's acquisition of AnorMED Inc. For
the second quarter of this year, Genzyme anticipates non-GAAP earnings per
diluted share in the low $0.80s.
Genzyme's cash flow remains particularly strong. In the first quarter,
the company generated approximately $231 million in cash from operations,
and it increased its cash position to approximately $1.5 billion.
"We had a magnificent quarter, and our results reflect the fundamental
strength of the company," said Genzyme's Chairman and Chief Executive
Officer, Henri A. Termeer. "We've begun the year with substantial momentum.
The business is performing well across the board, trial results have
confirmed the promise of several late-stage programs, and we remain on
track to report results from additional pivotal studies throughout the
year."
Genzyme's bullish outlook for both this year and beyond is based on
three factors:
* The expectation that revenue will continue to increase at a strong and
sustainable rate, driven by the ongoing growth of the company's more
than a dozen standard-setting products.
* The confidence that operating leverage from the company's global
manufacturing and commercial infrastructure will continue to drive
profitability.
* The company's enthusiasm about the strength of its late-stage product
pipeline, which is richer now than at any other point.
Therapeutics
Sales of Genzyme's newest product Myozyme(R) (alglucosidase alfa)
continue to exceed Genzyme's expectations one year after approval. Myozyme
sales in the first quarter were $37.9 million, leading Genzyme to increase
its guidance for the year to $170-$180 million, up from a previous estimate
of $155-$180 million. Myozyme is the first treatment ever developed for
Pompe disease, a progressively debilitating and often fatal neuromuscular
disorder. Genzyme is making steady progress toward introducing the product
throughout the world, as it has done with its three other treatments for
lysosomal storage disorders. Last week, Myozyme was approved in Japan, and
Genzyme expects to launch the product there this quarter following pricing
approval. Results from the ongoing post-marketing study of Myozyme
involving patients with late-onset Pompe disease will be submitted to
regulatory authorities in 2008. The trial is intended to provide further
support for Myozyme's use.
Genzyme will file this quarter for approval of a larger scale
manufacturing process to supply Myozyme for the U.S. market. An FDA
decision is expected in the fourth quarter. Production at the larger scale
at the company's Allston Landing facility-which is already approved for use
in 28 countries-is intended to enable Genzyme to meet the expected demand
for Myozyme in the United States going forward. The company is taking
several steps to optimize supply for the U.S. market during the review
period. Highest priority will be placed on ensuring that the treatment is
available for all patients currently on therapy, and for those in most
urgent medical need, including all those who are 18 years or younger. Some
will access Myozyme produced at the larger scale during the review period
through a clinical program designed to allow access prior to approval of
the manufacturing process.
Genzyme's three other treatments for lysosomal storage disorders showed
continued strength in the first quarter: Sales of Fabrazyme(R) (agalsidase
beta) for Fabry disease increased 25 percent to $100.7 million, compared
with $80.5 million in the same quarter last year. Sales of Cerezyme(R)
(imiglucerase for injection), the standard of care for patients with Type 1
Gaucher disease, grew 10 percent to $263.8 million, compared with $239.0
million in the first quarter a year ago. Sales of Aldurazyme(R)
(laronidase) for MPS I grew 26 percent to $26.8 million, compared with
$21.3 million in last year's first quarter. Aldurazyme is marketed through
a joint venture with BioMarin Pharmaceutical Inc., and product sales are
not included in Genzyme's revenue figures.
Genzyme continues to invest in developing potential next-generation
approaches to treating lysosomal storage disorders. The most advanced of
these is the small molecule GENZ-112638, which the company is currently
studying in an international, multi-center, open-label phase 2 clinical
trial involving patients with Gaucher disease. Enrollment in the trial will
likely conclude next month, and Genzyme expects preliminary findings to be
available by the time of its annual Analyst Day meeting in mid-May. The
trial will help determine the potential of this compound to serve as an
alternative or adjunct to enzyme replacement therapy for a number of rare
diseases. A safe and effective oral therapy would significantly alter the
way physicians approach Gaucher disease.
Also within the Therapeutics area, sales of Thyrogen(R) (thyrotropin
alfa for injection) grew 15 percent to $26.3 million compared with $23.0
million in the first quarter a year ago. Thyrogen is currently indicated
for use in diagnostic procedures involving patients being screened for
thyroid cancer recurrence. In Europe, Genzyme has won approval for the
product's use in thyroid ablation procedures, and U.S. approval for this
indication is expected by year end. To further broaden the potential use of
thyrotropin alfa, Genzyme plans to initiate a phase 2 study of a novel
formulation of recombinant TSH in the next several months evaluating the
product's ability to benefit patients suffering from multinodular goiter.
Renal
Within the Renal business, sales of Renagel(R) (sevelamer
hydrochloride) grew 16 percent to $137.4 million, up from $118.7 million in
the first quarter a year ago. Renagel continues to gain market share based
on its demonstrated clinical and economic benefits, and it has substantial
additional growth potential over the long term.
Renagel is indicated for the control of serum phosphorus in patients
with chronic kidney disease on hemodialysis. Genzyme is making excellent
progress toward introducing a second-generation version of Renagel that
also may benefit patients with chronic kidney disease who have not
progressed to dialysis. The company announced last week that a clinical
study of Renvela(R) (sevelamer carbonate), a buffered form of Renagel,
achieved its primary endpoint, demonstrating a statistically significant
reduction in serum phosphorus for hyperphosphatemic patients with chronic
kidney disease who are not on dialysis. Genzyme expects to gain approval
for Renvela's use in this indication next year. The FDA is now reviewing
Genzyme's application for Renvela's use among dialysis patients.
Genzyme's Hectorol(R) (doxercalciferol) is already indicated for
patients with earlier stages of chronic kidney disease, as well as those on
dialysis. This line of Vitamin D2 products for secondary
hyperparathyroidism grew significantly in the first quarter compared to the
same period last year. Hectorol sales rose to $28.3 million from $18.9
million a year ago. Hectorol is currently approved in the United States,
and Genzyme is working to make the product available internationally.
The development of the novel polymer therapy tolevamer is being managed
within Genzyme's renal business unit. Tolevamer is a compelling product
candidate that could become the first non-antibiotic treatment for
Clostridium difficile-associated diarrhea, a widespread and growing global
problem primarily affecting patients in hospitals and nursing homes. The
prevalence, impact and cost of Clostridium difficile are becoming
increasingly more visible as public health officials and others look for
new ways to manage this disease. Results from the two phase 3 trials of
tolevamer are expected to be available during the second half of this year.
Pending a positive outcome, the first commercial approval is anticipated in
2009.
Transplant
Sales of Thymoglobulin(R) (anti-thymocyte globulin, rabbit) and
Lymphoglobuline(R) (anti-thymocyte globulin, equine) increased 20 percent
in the first quarter, rising to $39.4 million from $32.9 million in last
year's first quarter. These products are used to treat acute rejection in
organ transplant procedures.
Genzyme's presence in the transplant field will provide an excellent
platform for the anticipated introduction of Mozobil(TM) (plerixafor),
which is designed to improve the outcome of stem-cell transplantation
procedures. Genzyme is concluding two pivotal studies of this
investigational product. Results of these studies, which involve patients
with the blood cancers multiple myeloma and non-Hodgkin's lymphoma, are
anticipated around mid year. Genzyme obtained this promising new product
candidate through its acquisition of AnorMED Inc. The company believes
Mozobil may have much broader potential within the oncology field and plans
to study its use as a chemosensitizing agent. A number of other
opportunities outside of oncology are being evaluated.
Biosurgery
First-quarter sales of Synvisc(R) (hylan G-F 20), a viscosupplement
used to treat pain associated with osteoarthritis of the knee, were $53.6
million, consistent with sales of $53.3 million in last year's first
quarter. The market for viscosupplementation products such as Synvisc is
affected by price competition. Genzyme is focused on changing the clinical
and economic picture in this market with the planned introduction of a
single-injection regimen, Synvisc ONE(TM), which has the potential to
reduce the burden and cost of treatment, drive sales, and expand the
market. The company will soon request an amendment to the Synvisc product
labeling in the United States and Europe to include a single-injection
regimen. In December, Genzyme reported preliminary results from a study
showing that patients who received Synvisc through a single-injection
regimen achieved a statistically significant improvement in pain from
osteoarthritis of the knee over 26 weeks compared with those using placebo.
Currently Synvisc is delivered through three injections given at one-week
intervals.
Results from the pivotal trial of hylastan(TM), a next-generation
viscosupplement, are expected this year, and Genzyme anticipates filing for
U.S. and European approval of the product later this year. Hylastan is also
designed to be administered using a single-injection regimen.
Sales of Sepra(TM) products increased significantly once again, rising
19 percent to $23.1 million in the first quarter, up from $19.4 million in
last year's first quarter. Seprafilm(R) adhesion barrier continues to be a
dynamic product, and its growing use in larger markets such as gynecologic
surgery is helping to drive overall sales. Genzyme is investing in
increasing the size of its U.S. Sepra sales force to support the further
growth of this product.
Genetics
Total revenue for the Genetics business increased to $66.2 million in
the first quarter, 15 percent greater than revenue of $57.5 million in the
first quarter a year ago. Genzyme's diagnostic services business continues
to gain momentum, spurred by increasing market share, improved operating
efficiencies, growth in its clinical trial business, and broader
recognition throughout the health care industry of the value of diagnostics
in improving outcomes.
Other
Revenue for Genzyme's Diagnostic Products business is now grouped with
"Other" revenue, which also includes oncology revenue, sales of
pharmaceutical intermediates, and WelChol(R) (colesevelem hydrochloride)
royalties. Other revenue grew 26 percent in the first quarter to $82.2
million, compared with $65.4 million in the same quarter last year.
Oncology revenue was $22.4 million, 84 percent greater than $12.2
million in the first quarter a year earlier, driven in part by sales of
Clolar(R) (clofarabine injection), which more than doubled. Sales of
Campath(R) (alemtuzumab) were also stronger than anticipated, and Genzyme
and marketing partner Bayer Schering Pharma AG, Germany, have now applied
to expand Campath's U.S. and European labeling to include first-line
treatment of B-cell chronic lymphocytic leukemia. A label expansion to
include first-line therapy would significantly increase the number of
patients eligible to receive Campath, which is currently indicated for the
treatment of B-CLL in patients who have been treated with alkylating agents
and who have failed fludarabine therapy.
Genzyme and Bayer Schering Pharma AG, Germany, are moving ahead to
complete the development of alemtuzumab for patients with multiple
sclerosis. Interim two-year data from the phase 2 clinical trial of
alemtuzumab for relapsing-remitting multiple sclerosis will be presented at
the American Academy of Neurology annual meeting in Boston on May 1.
Three-year data from this study are expected to be available later this
year. In addition, significant progress has been made toward the initiation
of two planned phase 3 clinical trials, one involving previously untreated
patients and one involving patients receiving an approved therapy whose
disease has progressed. These phase 3 studies are expected to begin this
year, following FDA clearance.
Genzyme is seeking to expand Clolar's indication to include adult
patients with acute myelogenous leukemia (AML). The product is currently
indicated for the treatment of pediatric patients with relapsed or
refractory acute lymphoblastic leukemia after at least two prior regimens.
Two trials of Clolar involving adult patients with AML are currently
underway and are expected to provide substantial support for expanding the
current product label, which Genzyme intends to pursue next year.
Expenses
Non-GAAP selling, general and administrative expenses were $246.3
million in the first quarter, compared with $210.9 million in the quarter a
year ago. Non-GAAP SG&A spending represented 28 percent of revenue in the
quarter, down from 29 percent in the first quarter last year, reflecting
the operating leverage Genzyme is gaining from its global commercial
infrastructure. GAAP SG&A expenses were $269.0 million in the quarter
compared with $230.7 million in the quarter a year earlier.
Non-GAAP research and development spending rose to $146.3 million in
the first quarter, up from $136.9 million in last year's first quarter.
Genzyme's R&D spending reflects the addition of the Mozobil program, along
with spending on other late-stage development programs, offset by the
termination of certain development programs and lower manufacturing
process-development costs as the Waterford fill-and-finish facility has
come on line. GAAP R&D spending was $166.1 million for the quarter compared
with $152.3 million in the quarter a year earlier.
GAAP SG&A and R&D figures reflect FAS 123R and FIN 46.
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 9,000 employees in locations
spanning the globe and 2006 revenues of $3.2 billion. Genzyme has been
selected by FORTUNE as one of the "100 Best Companies to Work for" in the
United States.
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, infectious
disease, and other areas of unmet medical need.
This press release contains forward-looking statements, including:
earnings and revenue guidance; anticipated progress of clinical trials and
regulatory filing and action estimates, including for Renvela, tolevamer,
GENZ-112638, Thyrogen in thyroid ablation, TSH in multinodular goiter,
Hylastan, Campath as first line treatment in B-CLL, alemtuzumab-MS, Clolar
in adult AML, Mozobil in multiple myeloma and non-Hodgkin's lymphoma and
Myozyme's post-marketing study in late onset patients; plans to file for
Myozyme manufacturing approval in the US and the timing thereof;
expectations regarding Genzyme's ability to meet Myozyme demand; expected
drivers of Genzyme's future growth, as well as the growth drivers for
certain products, including Synvisc, Renagel and Campath; expectations
regarding the timing of the launch of Myozyme in Japan; plans to seek a
Synvisc label change and the timing thereof; and other statements regarding
Genzyme's future performance and strategy. These statements are subject to
risks and uncertainties that could cause actual results to differ
materially from those forecast in these forward-looking statements. These
risks and uncertainties include, among others, Genzyme's ability to
successfully complete preclinical and clinical development of its products
and services, Genzyme's ability to expand the use of current products in
existing and new indications; Genzyme's ability to obtain and maintain
regulatory approvals for products and manufacturing facilities, and the
timing of receipt of such approvals; Genzyme's ability to manufacture
products and product candidates in a timely and cost effective manner and
in sufficient quantities to meet demand; Genzyme's ability to maintain and
enforce intellectual property rights; Genzyme's ability to successfully
identify and market to new patients; the scope of third-party reimbursement
coverage for Genzyme's products and services; and the risks and
uncertainties described in Genzyme's SEC reports filed under the Securities
Exchange Act of 1934, including the factors discussed under the caption
"Risk Factors" in Genzyme's Annual Report on Form 10-K for the period ended
December 31, 2006. Genzyme cautions investors not to place substantial
reliance on the forward-looking statements contained in this press release.
These statements speak only as of April 25, 2007 and Genzyme undertakes no
obligation to update or revise the statements.
Genzyme(R), Myozyme(R), Fabrazyme(R), Cerezyme(R), Thyrogen(R),
Renagel(R), Thymoglobulin(R), Lymphoglobuline(R), Synvisc(R), Campath(R)
and Clolar(R) are registered trademarks and Mozobil(TM), Renvela(TM),
Hylastan(TM) are trademarks of Genzyme Corporation or its subsidiaries. All
rights reserved.
This press release includes certain non-GAAP financial measures that
involve adjustments to GAAP figures. Genzyme believes that these non-GAAP
financial measures, when considered together with the GAAP figures, can
enhance an overall understanding of Genzyme's past financial performance
and its prospects for the future. The non-GAAP financial measures are
included with the intent of providing both management and investors with a
more complete understanding of underlying operational results and trends.
In addition, these non-GAAP financial measures are among the primary
indicators Genzyme management uses for planning and forecasting purposes
and measuring the company's performance. These non-GAAP financial measures
are not intended to be considered in isolation or as a substitute for GAAP
figures. A reconciliation of the non-GAAP to GAAP figures follows this
press release.
Conference Call Information
Genzyme Corporation will host a conference call today at 11:00 a.m.
Eastern Time to discuss first-quarter financial results. To participate in
the call, please dial 773-799-3828 and refer to pass code "Genzyme." A
replay of this call will be available by dialing 402-220-4870. This call
will also be Webcast live on the investor events section of
http://www.genzyme.com. Replays of the call and the Webcast will be available
until midnight on May 2, 2007.
Upcoming Events
Genzyme will host its annual Analyst and Investor Day on May 16, 2007.
The event will be Web cast live beginning at 1:00 p.m. ET, and there will
be a replay available for approximately two weeks after the event. The live
Web cast and replay may be found at the investor events section of
http://www.genzyme.com/investor.
Genzyme Corporation will host a conference call July 25 at 11:00 a.m.
Eastern Time to discuss second-quarter financial results. To participate in
the call, please dial 773-799-3828 and refer to pass code "Genzyme." A
replay of this call will be available by dialing 402-220-5069. This call
will also be Webcast live on the investor events section of
http://www.genzyme.com. Replays of the call and the Webcast will be available
until midnight on August 1, 2007.
Genzyme's press releases and other company information are available at
http://www.genzyme.com and by calling Genzyme's investor information line at
1-800- 905-4369 within the United States or 1-703-797-1866 outside the
United States.
GENZYME CORPORATION (GENZ)
Consolidated Statements of Operations
(Unaudited, amounts in thousands,
except per share amounts)
Three Months Ended
March 31,
2007 2006
Total revenues $883,183 $730,842
Operating costs and expenses:
Cost of products and services sold (1) 202,463 166,950
Selling, general and administrative (1) 269,021 230,669
Research and development (1) 166,120 152,323
Amortization of intangibles 50,017 52,692
Total operating costs and expenses 687,621 602,634
Operating income 195,562 128,208
Other income (expenses):
Equity in income of equity method
investments 5,612 2,246
Minority interest 3,912 2,446
Gain on investments in equity
securities (2) 12,788 7,942
Other (525) (139)
Investment income 16,219 10,078
Interest expense (4,188) (4,438)
Total other income (expenses) 33,818 18,135
Income before income taxes (1) 229,380 146,343
Provision for income taxes (1) (71,193) (45,369)
Net income (1) $158,187 $100,974
Net income per share:
Basic $0.60 $0.39
Diluted (1,3) $0.57 $0.37
Weighted average shares outstanding:
Basic 263,476 259,709
Diluted (1,3) 279,924 276,809
(1) For the three months ended March 31, 2007, in accordance with the
provisions of Financial Accounting Standards Board, or FASB, Statement
of Financial Accounting Standards No., or FAS, 123R, "Share-Based
Payment, an amendment of FASB Statement Nos. 123 and 95," we
recorded pre-tax charges for stock compensation expense totaling
$(40,707)K, of which $(5,896)K were charged to cost of products
and services sold, $(22,499)K were charged to selling, general and
administrative expense and $(12,312)K were charged to research and
development expense. In addition, we recorded $12,432K of related tax
benefits. For the three months ended March 31, 2006, we recorded pre-
tax charges for stock compensation expense totaling $(32,607)K, of
which $(2,303)K were charged to cost of products and services sold,
$(19,447)K were charged to selling, general and administrative expense
and $(10,857)K were charged to research and development expense.
In addition, we recorded $10,348K of related tax benefits. Diluted
earnings per share and diluted weighted average shares outstanding for
both the three months ended March 31, 2007 and 2006 were computed in
accordance with the provisions of FAS123R.
(2) For the three months ended March 31, 2007, includes a pre-tax gain
of $10,848K on the sale of our entire investment in the common stock
of Therapeutic Human Polyclonals Inc., which had a zero cost basis.
(3) Reflects the retroactive application of the adoption of Emerging
Issues Task Force Issue No. 04-8, "The Effect of Contingently
Convertible Debt on Diluted Earnings Per Share," or EITF 04-8. As a
result of the adoption of EITF 04-8, the 9,686K shares issuable upon
conversion of our $690,000K in principal of 1.25% convertible senior
notes, which were issued in December 2003, are now included in diluted
weighted average shares for purposes of computing diluted earnings per
share, unless the effect would be anti-dilutive. In accordance with
EITF 04-8, interest and debt fees related to the notes of $1.9 million
net of tax, for both the three months ended March 31, 2007 and 2006
have been added back to net income and 9,686K shares have been added
to diluted weighted average shares outstanding for each of those
periods for purposes of computing diluted earnings per share.
GENZYME CORPORATION (GENZ)
Condensed Consolidated Balance Sheets
(Unaudited, amounts in thousands)
March 31, December 31,
2007 2006
Cash and all marketable securities $1,450,123 $1,285,604
Other current assets 1,436,071 1,377,437
Property, plant and equipment, net 1,670,849 1,610,593
Intangibles, net 2,756,036 2,790,819
Other assets 161,595 126,735
Total assets $7,474,674 $7,191,188
Current liabilities $660,681 $651,439
Noncurrent liabilities 866,893 879,038
Stockholders' equity 5,947,100 5,660,711
Total liabilities and stockholders'
equity $7,474,674 $7,191,188
GENZYME CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP EARNINGS
For the Three Months Ended March 31, 2007
(Amounts in thousands, except per share data)
Dilution
Due to Gain on
Common Investment
Stock in Equity
Equiva- Securi- Amortiza-
NON-GAAP ents ties tion
Income Statement Classification:
Total revenues $883,183
Cost of products and services
sold $(196,567)
Selling, general and
administrative $(246,322)
Research and development $(146,347)
Amortization of intangibles $- $(50,017)
Equity in income (loss) of
equity method investments $1,782
Minority interest $81
Gains (losses) on investments
in equity securities $1,940 $10,848
Other $(525)
Investment income $16,219
Interest expense $(4,188)
Summary:
Income (loss) before income
taxes $309,256 $- $10,848 $(50,017)
(Provision for) benefit from
income taxes $(98,516) - (2,698) 17,589
Net income (loss) $210,740 $- $8,150 $(32,428)
Net income (loss) per share:
Basic $0.80 $- $0.031 $(0.123)
Diluted (1) $0.78 $(0.020) $0.029 $(0.116)
Weighted average shares
outstanding:
Basic 263,476
Diluted (1) 270,238 9,686
GENZYME CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP EARNINGS
For the Three Months Ended March 31, 2007
(Amounts in thousands, except per share data)
FAS 123R Effect of GAAP
Expense FIN 46 As Reported
Income Statement Classification:
Total revenues $883,183
Cost of products and services
sold $(5,896) $(202,463)
Selling, general and
administrative $(22,499) $(200) $(269,021)
Research and development $(12,312) $(7,461) $(166,120)
Amortization of intangibles $(50,017)
Equity in income (loss) of
equity method investments $3,830 $5,612
Minority interest $3,831 $3,912
Gains (losses) on investments
in equity securities $12,788
Other $(525)
Investment income $16,219
Interest expense $(4,188)
Summary:
Income (loss) before income
taxes $(40,707) $- $229,380
(Provision for) benefit from
income taxes 12,432 - (71,193)
Net income (loss) $(28,275) $- $158,187
Net income (loss) per share:
Basic $(0.107) $- $0.60
Diluted (1) $(0.101) $- $0.57
Weighted average shares
outstanding:
Basic - 263,476
Diluted (1) - 279,924
(1) GAAP As-Reported diluted earnings per share and diluted weighted
average shares outstanding reflect the adoption of EITF 04-8. In
accordance with the provisions of EITF 04-8, interest and debt fees
related to our 1.25% convertible senior notes of $1,886K, net of tax,
have been added back to net income and approximately 9,686K shares
have been added to diluted weighted average shares for purposes of
computing GAAP As-Reported diluted earnings per share.
Genzyme Guidance
Adjusted April 25, 2007
Low High
GENZ GAAP EPS $2.08 $2.18
GAIN ON INVESTMENT EQUITY
SECURITIES approx. $(0.03)
AMORTIZATION approx. $0.49
FAS123 EXPENSE approx. $0.58
CONTINGENT CONVERTIBLE DEBT approx. $0.08
*GENZ NON-GAAP EPS $3.20 $3.30
**WTD AVERAGE SHARES O/S 272 275
This financial guidance, which is provided as part of a press
releases dated April 25, 2007, is subject
to all of the qualifications and limitations described therein.
Actual results may differ from these forward-looking
statements due to the numerous factors described in the press
release.
* Non-GAAP EPS excludes the impact of amortization, one-time events,
FAS123 expense and EITF 04-08.
** WTD Average Shares Outstanding excludes the impact of EITF 04-08 .
SOURCE Genzyme Corporation
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