Delivers Solid Earnings Growth Based on Strong Top-Line Performance
CAMBRIDGE, Mass., July 12 /PRNewswire-FirstCall/ -- Genzyme Corp.
(Nasdaq: GENZ) today reported a 19 percent increase in second quarter
revenue, driven by growth across all major product areas. Revenue rose to
$793.4 million from $668.1 million in the second quarter a year ago.
GAAP net income increased to $134.5 million, or $0.49 per diluted
share, compared with $123.6 million, or $0.46 per diluted share, in the
second quarter last year. GAAP net income includes a $42.0 million net gain
in equity securities, principally reflecting the tender of Genzyme's
investment in Cambridge Antibody Technology Group plc, which is being
acquired by AstraZeneca plc. GAAP earnings also include stock compensation
expenses, which amounted to $55.3 million after taxes, or $0.20 per diluted
share, and were higher than in the first quarter because they reflect the
impact of Genzyme's annual broad-based stock option grant in May. GAAP
earnings for the second quarter of last year do not include stock
compensation expenses.
Non-GAAP net income increased 22 percent to $181.2 million, up from
$149.0 million in the same quarter a year ago, and non-GAAP earnings
increased 19 percent to $0.68 per diluted share from $0.57 per diluted
share. Non-GAAP figures exclude one-time items, amortization, stock
compensation expenses, dilution from contingent convertible debt, and the
impact of FIN 46.
"We had a strong quarter with excellent progress throughout the
business, including solid results in the three product areas that were
below expectations in the first quarter," said Henri A. Termeer, Genzyme's
chairman and chief executive officer. "We are on track to meet our
financial goals for the year, while also meeting our commitment to the
future by continuing to invest in late-stage clinical trials, manufacturing
expansion, and product launches."
Genzyme reiterated its full-year revenue guidance of $3.1 to $3.3
billion, its GAAP earnings guidance of $1.78-$1.88 per diluted share, and
its non-GAAP earnings guidance of $2.65-$2.75 per diluted share.
Product Sales
Within the Renal division, revenue for Renagel(R) (sevelamer
hydrochloride), a phosphate binder for patients with end-stage renal
disease on hemodialysis, grew 26 percent to $126.6 million, up from $100.8
million in the same period last year. Renagel's growth is being driven by
the communication of strong clinical data, improved access to the product
through the Medicare Part D program, development of international markets,
and the expanded U.S. commercial organization. Genzyme looks forward to the
publication later this year of clinical results from the DCOR study and the
presentation of health economic data from this study at the American
Society of Nephrology meeting in November.
The expanded U.S. commercial organization is also helping to drive the
growth of Hectorol(R) (doxercalciferol), which treats secondary
hyperparathyroidism in patients on dialysis and those with earlier stages
of chronic kidney disease. Hectorol sales in the second quarter were $22.4
million, compared with sales of $18.9 million in the first quarter. Genzyme
has begun to implement the global commercialization strategy for Hectorol
it envisioned when it acquired the product last July. During the quarter,
it submitted a marketing application for the product in Argentina, and
filings in Mexico and Israel are expected to follow later this year. The
company is planning clinical studies to facilitate Hectorol's registration
in Europe and to reinforce its position in the United States.
Within the Therapeutics area, sales of Fabrazyme(R) (agalsidase beta)
enzyme replacement therapy for Fabry disease grew 20 percent in the second
quarter to $89.0 million, compared with sales of $74.4 million in the same
quarter last year. Fabrazyme's growth was driven by the number of new
patients beginning therapy. Sales increased 11 percent from the first
quarter.
Sales of Cerezyme(R) (imiglucerase for injection) enzyme replacement
therapy for Type 1 Gaucher disease were $254.0 million, 8 percent greater
than sales of $236.0 million in the second quarter a year ago.
Sales of Aldurazyme(R) (laronidase) enzyme replacement therapy for
patients with MPS I were $23.5 million in the second quarter, a 23 percent
increase from sales of $19.2 million in the same quarter last year.
Aldurazyme is marketed through an increasingly profitable joint venture
with BioMarin Pharmaceutical Inc.
Sales of Myozyme(R) (alglucosidase alfa) were $6.5 million in the
second quarter. In April, the product was approved in the United States for
the treatment of all patients with Pompe disease. Myozyme was launched in
the United States in mid-May, and the product is also being introduced in a
growing number of European Union countries following European Commission
approval at the end of the first quarter. Genzyme is making excellent
progress in securing reimbursement approvals both for patients with the
infantile and the late-onset forms of Pompe disease. Myozyme sales are
expected to increase throughout this year as patients transition from
clinical trials or expanded access programs and as new patients are
identified. Genzyme anticipates that sales will begin to have a material
impact on the company next year. Marketing applications for Myozyme have
been submitted in Japan and Canada, and Genzyme expects to file for
approval in several additional countries in the coming months.
Sales of Thyrogen(R) (thyrotropin alfa for injection) rose to $23.7
million in the second quarter, a 15 percent increase from sales of $20.7
million during the same period a year earlier.
Within the Biosurgery area, sales of Synvisc(R) (hylan G-F 20)
increased 8 percent compared with the second quarter of last year, rising
to $63.6 million from $58.8 million, driven by the expanding market for
viscosupplementation products. Product sales increased 19 percent from the
first quarter of this year, reflecting seasonal trends and the impact of an
expanded sales and marketing investment. Synvisc is indicated for the
treatment of knee pain caused by osteoarthritis. Data from an independent
study were presented last month at the annual congress of the European
League Against Rheumatism that provide further evidence to differentiate
Synvisc clinically from competing products. The study results showed that
patients receiving Synvisc experienced a greater magnitude and duration of
pain relief than those receiving Hyalgan(R) (sodium hyaluronate).
Similarly, Synvisc patients experienced significantly better functional
outcomes and higher levels of satisfaction than those receiving Hyalgan.
Sales of Sepra(TM) products grew 28 percent to $22.0 million, up from
$17.1 million in the second quarter a year ago. This growth was driven
partially by the increasing use of Seprafilm(R) adhesion barrier in major
gynecologic procedures, including oncologic surgery and Cesarean sections.
Within the Transplant area, combined sales of Thymoglobulin(R) (anti-
thymocyte globulin, rabbit) and Lymphoglobuline(TM) (anti-thymocyte
globulin, equine) were $39.8 million, up 19 percent compared with $33.6
million in the second quarter last year. These products are used in
conjunction with immunosuppressant drugs to treat acute rejection in renal
transplant procedures.
Total revenue for the Diagnostics/Genetics business increased to $87.3
million in the second quarter, 14 percent greater than revenue of $76.5
million in the same period last year. During the quarter, Genzyme Genetics
introduced two new molecular tests that may enable physicians to better
manage patients with acute myelogenous leukemia.
Other revenue -- including oncology revenue, sales of pharmaceutical
intermediates, and royalties from sales of WelChol(R) (colesevelam
hydrochloride) -- increased 30 percent to $40.1 million from $30.9 million
in the second quarter last year.
Oncology revenue was $13.7 million, an increase of 41 percent compared
with $9.7 million in the same quarter last year. Oncology revenue includes
profits and royalties from Campath(R) (alemtuzumab), which is marketed by
Schering AG and its U.S. affiliate Berlex; sales of Clolar(R) (clofarabine
for intravenous infusion); and R&D revenue.
Expenses
Selling, general and administrative expenses were $220.4 million,
excluding the impact of stock compensation expenses and FIN 46. Non-GAAP
SG&A spending was approximately 28 percent of revenue, down from 29 percent
in the same period a year ago.
Non-GAAP research and development spending in the second quarter was
$138.6 million, or 17 percent of revenue, excluding the impact of stock
compensation expenses and FIN 46. Non-GAAP R&D spending in the same quarter
last year was $115.3 million, or 17 percent of revenue. The reconciliation
from GAAP to non-GAAP R&D and SG&A expenses is included on the accompanying
chart.
Genzyme is conducting more late-stage trials now than at any point in
its history. New products and new product indications are expected to
expand and further diversify the company's portfolio and contribute to its
long-term growth. Clinical development program highlights for the second
quarter include the following:
* Enrollment is more than two-thirds complete in the phase 3 trial of
tolevamer, a novel non-absorbed polymer therapy that could be the first
non-antibiotic treatment for Clostridium difficile-associated diarrhea,
a widespread and growing global problem affecting patients in hospitals
and nursing homes. The trial is scheduled for completion next year.
Regulatory submissions are scheduled to begin late next year, and the
first commercial approval is anticipated in 2008.
* Preparations are underway for the initiation of a phase 3 study of
alemtuzumab (Campath) for the treatment of relapsing/remitting multiple
sclerosis, which is expected during the second half of this year. In
addition, nearly all participating patients have now completed at least
24 months in the ongoing Phase 2 clinical trial comparing alemtuzumab
with Rebif(R) (interferon beta-1a) for the treatment of multiple
sclerosis. Genzyme expects to release data in the second half of this
year from a two-year interim analysis of this three-year study.
* Progress continues to be made within the sevelamer carbonate development
program. A study evaluating the product's equivalence to Renagel has
been completed and results are being analyzed. Genzyme has also begun a
study evaluating the potential of sevelamer carbonate to benefit
patients with chronic kidney disease who are not on dialysis, and a
study comparing a powder form of sevelamer carbonate dosed once a day to
Renagel tablets dosed three times a day. Such a formulation could
provide an additional option to increase patient compliance.
* The clinical study of Myozyme involving patients with late-onset Pompe
disease is fully enrolled and will continue throughout this year. The
90-patient trial is intended to provide further support for Myozyme's
use. Results will be available early next year and will be submitted to
regulatory authorities.
* Advances continue within the clinical program designed to extend the use
of Synvisc to the hip, shoulder and ankle, and to introduce new
formulations of the product. Genzyme expects to launch Synvisc for use
in the hip in the United States during the first half of 2007. The
company is also conducting pivotal trials of Synvisc 2 and hylastan,
potential next-generation viscosupplementation products that are
designed to increase patient convenience by reducing the number of
injections required for treatment. Enrollment has been completed in the
trial of Synvisc 2, and Genzyme is planning for product launch next year
in Europe and the United States, depending on the outcome of the trial.
* Genzyme is working to broaden the indications for its oncology products,
Campath and Clolar, to benefit larger patient populations. A phase 3
trial comparing Campath with chlorambucil in previously untreated
patients with progressive B-cell chronic lymphocytic leukemia (B-CLL)
may demonstrate the product's efficacy as a first-line agent.
Encouraging interim results from this study, focusing on the study's
secondary endpoint, were presented at the Annual Meeting of the American
Society of Clinical Oncology in June. They showed that patients who
received Campath exhibited significantly higher overall and complete
response rates, with a manageable safety profile, compared with
chlorambucil patients. The interim results also showed statistically
significant higher response rates to Campath in patients with certain
cytogenic abnormalites that are typically associated with poor
prognosis. Data from the study's primary endpoint of progression-free
survival are expected by the end of the year, when Genzyme and
development partner Schering AG expect to submit U.S. and European
applications to expand the product's current label to include first-line
treatment of B-CLL patients.
* Genzyme is seeking to expand Clolar's indication to include adult
patients. Enrollment is expected to begin shortly in a phase 3 study
evaluating Clolar's use in combination with existing therapies for adult
patients with acute myelogenous leukemia. Additional late-stage studies
are also planned to support Clolar's use in older patients. The product
is currently indicated for the treatment of pediatric patients with
relapsed or refractory acute lymphoblastic leukemia after at least two
prior regimens.
* In the lysosomal storage disease area, enrollment is expected to begin
in the coming weeks in an international, multi-center phase 2 clinical
trial evaluating the safety and efficacy of the small molecule GENZ-
112638 for the treatment of Gaucher disease. The trial will help
determine the potential of this compound as an alternative or adjunct to
enzyme replacement therapy. GENZ-112638 also may be applicable to
several other lysosomal storage disorders in addition to Gaucher
disease. Initiation of the phase 2 program follows completion of an
extensive pre-clinical research effort and a phase 1 program that
involved more than 120 subjects in three separate studies.
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. This year marks the 25th anniversary of Genzyme's
founding. Since 1981, the company has grown from a small start-up to a
diversified enterprise with more than 8,000 employees in locations spanning
the globe and 2005 revenues of $2.7 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 more
than 80 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 diseases, and diagnostic
testing. Genzyme's commitment to innovation continues today with a
substantial development program focused on these fields, as well as heart
disease and other areas of unmet medical need.
This press release contains forward-looking statements, including
statements regarding 2006 earnings, revenues, EPS, and product sales
estimates; expected drivers of Genzyme's future growth, as well as the
growth drivers for certain products, including Renagel, Hectorol, and
Myozyme; the ability of our molecular tests to help physicians better
manage treatment for patients with AML; the development of new markets and
seeking additional approved indications and uses for Genzyme's products,
including Hectorol, Myozyme, Synvisc, Campath and Clolar; anticipated
progress of clinical trials, including those for tolevamer, alemtuzumab MS,
sevelamer carbonate, Myozyme, hylastan, Synvisc 2, Clolar and GENZ-112638;
publication of results from the DCOR trial; the anticipating timing of
Synvisc 2 launch; 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 maintain and obtain regulatory approvals
for products and services, and the timing of receipt of such approvals;
Genzyme's ability to successfully identify and market to new patients; the
scope of third-party reimbursement coverage for Genzyme's products and
services; Genzyme's ability to successfully expand its sales and marketing
teams in existing and new markets; Genzyme's ability to manufacture
products and product candidates in a timely and cost effective manner; the
ability to manage patient safety and the continued administration of
alemtuzumab to MS patients following clinical hold release; Genzyme's
ability to develop and obtain approval of a patient safety plan for
alemtuzumab MS; failure of Genzyme's molecular tests to produce diagnostic
results as anticipated; 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 "Factors Affecting Future
Operating Results" in Genzyme's Quarterly Report on Form 10-Q for the
quarter ended March 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 July 12, 2006 and Genzyme
undertakes no obligation to update or revise the statements.
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.
These non-GAAP financial measures are not intended to be considered in
isolation or as a substitute for GAAP figures. In addition, gross margin
figures exclude amortization of product-related intangible assets.
Genzyme(R), Renagel(R), Hectorol(R), Fabrazyme(R), Cerezyme(R),
Thyrogen(R), Synvisc(R), Myozyme(R), Thymoglobulin(R), Clolar(R) and
Campath(R) are registered trademarks and Sepra(TM) and Lymphoglobuline(TM)
are trademarks of Genzyme Corporation or its subsidiaries. WelChol(R) is a
registered trademark of Sankyo Pharma Inc. Aldurazyme(R) is a registered
trademark of BioMarin/Genzyme LLC. Hyalgan(R) is a registered trademark of
Sanofi Aventis. Rebif(R) is a registered trademark of Serono, Inc.
Conference Call Information
There will be a conference call today at 11:00 a.m. Eastern to discuss
Genzyme Corporation's financial results for the second quarter of 2006. If
you would like to participate in the call, please dial (706) 679-8722. This
call will also be Webcast on the investor events section of
http://www.genzyme.com. A replay of the Webcast call will be available from
2:15 p.m. Eastern today through midnight on July 19. For the call, please
dial (706) 645-9291 and refer to reservation number 7981370.
Upcoming Events
Genzyme will announce its financial results for the third quarter of
2006 on October 12, 2006. There will be a conference call to discuss these
results at 11:00 a.m. Eastern. If you would like to participate in the
call, please dial (706) 679-8722. The call will also be Webcast live on the
investor events section of http://www.genzyme.com. A replay of the Webcast
call will be available from 2:15 p.m. Eastern through midnight on October
19, 2006. For the call replay, please dial (706) 645-9291 and refer to
reservation number 1650276.
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.
Media Contact: Investor Contact:
Bo Piela Sally Curley
617-768-6579 617-768-6140
GENZYME CORPORATION (GENZ)
Consolidated Statements of Operations
(Unaudited, amounts in thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
2006 2005 2006 2005
Total revenues $793,356 $668,139 $1,524,198 $1,298,088
Operating costs and
expenses:
Cost of products and
services sold (1) 185,333 145,250 352,283 291,343
Selling, general and
administrative (1) 273,480 196,385 504,149 378,224
Research and development (1) 168,941 121,726 321,264 236,471
Amortization of
intangibles 52,883 40,105 105,575 81,291
Purchase of in-process
research and development (2) - - - 9,500
Total operating costs and
expenses 680,637 503,466 1,283,271 996,829
Operating income 112,719 164,673 240,927 301,259
Other income (expenses):
Equity in income (loss)
of equity method
investments 3,854 (417) 6,100 (2,135)
Minority interest 2,750 3,357 5,196 5,551
Gain on investments in
equity securities (3) 66,967 4,817 74,909 4,958
Other (319) 253 (458) 193
Investment income 12,563 7,544 22,641 14,162
Interest expense (4,035) (4,466) (8,473) (8,274)
Total other income
(expenses) 81,780 11,088 99,915 14,455
Income before income taxes(1) 194,499 175,761 340,842 315,714
Provision for income taxes(1) (60,002) (52,130) (105,371) (96,525)
Net income (1) $134,497 $123,631 $235,471 $219,189
Net income per share of
Genzyme Stock:
Basic $0.52 $0.49 $0.91 $0.87
Diluted (1,4) $0.49 $0.46 $0.86 $0.83
Weighted average shares
outstanding:
Basic 260,444 253,086 260,076 252,003
Diluted (1,4) 276,312 270,084 276,560 268,988
(1) Reflects the adoption 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,"
using the modified prospective basis effective January 1, 2006. For
the three months ended June 30, 2006, in accordance with the
provisions of FAS 123R, we recorded pre-tax charges for stock
compensation expense totaling $(82,888)K, of which $(4,927)K were
charged to cost of products and services sold, $(52,692)K were charged
to selling, general and administrative expense and $(25,269)K were
charged to research and development expense. In addition, we recorded
$27,577K of related tax benefits. For the six months ended June 30,
2006, in accordance with the provisions of FAS 123R, we recorded
pre-tax charges for stock compensation expense totaling $(115,495)K,
of which $(7,230)K were charged to cost of products and services sold,
$(72,139)K were charged to selling, general and administrative expense
and $(36,126)K were charged to research and development expense. In
addition, we recorded $37,925K of related tax benefits. Diluted
earnings per share and diluted weighted average shares outstanding for
the three and six months ended June 30, 2006 were computed in
accordance with the provisions of FAS 123R.
(2) Includes charges for the purchase of in-process research and
development of $(9,500)K related to our acquisition of Verigen AG in
February 2005.
(3) Includes pre-tax gains of $69,359K related to the liquidation of our
investment in the common stock of Cambridge Antibody Technology Group
plc during May and June 2006.
(4) Reflects 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 $690.0 million 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 the three months ended June 30, 2006 and 2005 and $3.7
million, net of tax, for the six months ended June 30, 2006 and 2005
have been added back to net income and approximately 9.7 million
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)
June 30, December 31,
2006 2005
Cash and all marketable
securities $1,358,240 $1,089,102
Other current assets (1) 1,392,290 1,179,093
Property, plant and
equipment, net 1,458,222 1,320,813
Intangibles, net 3,028,777 3,078,461
Other assets 135,342 211,396
Total assets $7,372,871 $6,878,865
Current liabilities $616,632 $550,023
Noncurrent liabilities 1,111,591 1,178,975
Stockholders' equity 5,644,648 5,149,867
Total liabilities and
stockholders' equity $7,372,871 $6,878,865
(1) As of June 30, 2006, includes net proceeds receivable of $99.0 million
related to the portion of our investment in the common stock of
Cambridge Antibody Technology Group plc that was liquidated in June
2006.
GENZYME CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP EARNINGS
Quarter Ended June 30, 2006
(Amounts in thousands, except per share data)
NON-GAAP Dilution
Before Due to
FIN 46, FAS 123R, Contingently
Amortization, Net Convertible
Gain on Equity Debt
Securities & EITF 04-8 (EITF 04-8)
Income Statement Classification:
Total revenues $793,356
Cost of products and services sold $(180,406)
Selling, general and administrative $(220,395)
Research and development $(138,565)
Amortization of intangibles $-
Equity in income (loss) of equity
method investments $1,105
Minority interest $-
Gain on investments in equity
securities $501
Other $(319)
Investment income $12,562
Interest expense $(4,035)
Summary:
Income (loss) before income taxes $263,804 $-
(Provision for) benefit from income
taxes (82,581) -
Net income (loss) $181,223 $-
Net income (loss) per share of
Genzyme Stock:
Basic $0.70 $-
Diluted (1) $0.68 $(0.017)
Weighted average shares outstanding:
Basic 260,444
Diluted (1) 266,626
GENZYME CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP EARNINGS
Quarter Ended June 30, 2006
(Amounts in thousands, except per share data)
Gain/(Loss) on
Investments
in Equity FAS 123R
Securities Amortization Expense
Income Statement
Classification:
Total revenues
Cost of products and services
sold $(4,927)
Selling, general and
administrative $(52,692)
Research and development $(25,269)
Amortization of intangibles $(52,883)
Equity in income (loss) of
equity method investments
Minority interest
Gain on investments in equity
securities $66,466
Other
Investment income
Interest expense
Summary:
Income (loss) before income
taxes $66,466 $(52,883) $(82,888)
(Provision for) benefit from
income taxes (24,459) 19,461 27,577
Net income (loss) $42,007 $(33,422) $(55,311)
Net income (loss) per share of
Genzyme Stock:
Basic $0.161 $(0.128) $(0.212)
Diluted (1) $0.152 $(0.121) $(0.200)
Weighted average shares
outstanding:
Basic
Diluted (1)
GENZYME CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP EARNINGS
Quarter Ended June 30, 2006
(Amounts in thousands, except per share data)
NON-GAAP
Before Effect Effect of GAAP
of FIN 46 FIN 46 As Reported
Income Statement Classification:
Total revenues $793,356 $793,356
Cost of products and services sold $(185,333) $(185,333)
Selling, general and administrative $(273,087) $(393) $(273,480)
Research and development $(163,834) $(5,107) $(168,941)
Amortization of intangibles $(52,883) $(52,883)
Equity in income (loss) of equity
method investments $1,105 $2,749 $3,854
Minority interest $- $2,750 $2,750
Gain on investments in equity
securities $66,967 $66,967
Other $(319) $(319)
Investment income $12,562 $1 $12,563
Interest expense $(4,035) $(4,035)
Summary:
Income (loss) before income taxes $194,499 $(0) $194,499
(Provision for) benefit from income
taxes (60,002) - (60,002)
Net income (loss) $134,497 $(0) $134,497
Net income (loss) per share of
Genzyme Stock:
Basic $0.52 $- $0.52
Diluted (1) $0.49 $- $0.49
Weighted average shares outstanding:
Basic 260,444 - 260,444
Diluted (1) 276,312 - 276,312
(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 $1.9 million, net of
tax, have been added back to net income and approximately 9.7 million
shares have been added to diluted weighted average shares for purposes
of computing GAAP As-Reported diluted earnings per share.
SOURCE Genzyme Corporation
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Related links:
http://www.genzyme.com/
http://www.prnewswire.com/comp/104284.html/
CONTACT:
Media Contact: Bo Piela, +1-617-768-6579, or
Investor Contact: Sally Curley, +1-617-768-6140, both of Genzyme
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