DJ News on GENZ/Press Release
-Earnings look good.
-Deal for CEGE and through them 22% of soaring ABGX looking very valuable.
-Overall pretty encouraging.
-Stock up today; end of the dry spell?
RWR
Genzyme Sees 1999 Results In Line With Street Estimates
Wednesday, December 1, 1999 06:33 PM
By Melanie Trottman, Staff Reporter
NEW YORK -(Dow Jones)- A Genzyme Corp. executive Wednesday indicated the company expects to report 1999 results in line with analysts' estimates, citing growth of its key product Cerezyme and sales from newer drugs.
"We're looking at a little over $1.90 this year," said Genzyme Senior Vice President Elliott Hillback. That's in line with the mean estimate of analysts surveyed by First Call/Thomson Financial of $1.91 a share.
Driving the earnings will be sales of Cerezyme, a drug to treat Gaucher's disease. Hillback expects sales of the drug in 1999 to total about $475 million, up from $411 million in 1998.
"Cerezyme continues to grow quite strongly," said Hillback, adding that fourth-quarter sales should be about $125 million.
He said that continued growth should be driven by more patients taking the drug. Also, Genzyme plans to launch Cerezyme in a few more countries; it is currently marketed in about 55 countries.
Two drugs launched earlier this year also will contribute to Genzyme's 1999 earnings. Sales of Renagel, used to treat patients with chronic kidney failure, should total about $20 million while sales of Thyrogen, used in thyroid cancer screening, should total between $8.5 million and $10 million. Thyrogen should become a $50-million to $75- million product at maturity, Hillback said.
He expects Renagel sales will at least double next year as launches in Europe begin. The drug recently gained regulatory approval there but still needs to get reimbursement approval. Genzyme will likely launch Renagel in about two European countries per quarter, with sales contributing much more significantly to earnings in 2001, Hillback said.
Meanwhile, Thyrogen is still awaiting approval in Europe, which is likely to be granted early next year.
Double-digit growth at Genzyme should continue over the next few years, with annual revenue expected to increase by 15% to 20% and earnings per share expected to rise about 20%, Hillback said.
In another matter, Hillback said Genzyme's recent decision to acquire Cell Genesys Inc. (CEGE, news, msgs) will add key gene-therapy technology to the company's portfolio. The acquisition will also give Genzyme a stake in Abgenix Inc. (ABGX, news, msgs), a monoclonal-antibody-development company that is 22%-owned by Cell Genesys.
Based outside San Francisco, Cell Genesys "gives us access to the West Coast biotech community," Hillback said. He doesn't expect significant layoffs from the acquisition and said Genzyme will likely add more scientists at the California site. |
