Genzyme expects 2007 profit to rise on drug sales

BOSTON (Reuters) - Genzyme Corp. (GENZ.O) said on Tuesday it expects its earnings to rise in 2007, boosted by increased sales of its drugs for chronic and rare genetic diseases.

The biotechnology company said it expects earnings excluding one-time items of between $3.10 and $3.20 a share on revenue of $3.6 billion to $3.8 billion.

Analysts had on average expected 2007 earnings of $3.15 a share, according to Reuters Estimates. They expected revenue of $3.6 billion.

"We see Genzyme's fourth-quarter 2006 performance as quite good and the 2007 guidance as solid. We remain buyers of Genzyme shares," Robert W. Baird analyst Christopher Raymond said in a research note.

Fourth-quarter revenue rose 17 percent to $852 million from $729 million a year ago, helped by sales of its newest product, Myozyme, a drug to treat rare muscle disorder Pompe disease, the company said, citing preliminary figures.

Chief Executive Officer Henri Termeer, speaking at an investor conference in San Francisco, said drugs for knee pain and kidney disease also contributed to the better-than-expected fourth-quarter results.

He also said Genzyme will be unveiling pivotal-stage data this year on several drugs, including a treatment for cancer patients undergoing blood stem cell transplants.

Myzoyme was launched in the United States and Europe during the second quarter. Sales in the fourth quarter were $30 million. More than 550 patients in about 35 countries are on the therapy, Genzyme said.

Fourth-quarter sales of Fabrazyme, the company's drug to treat Fabry disease, which causes blood fats to build up in blood vessels, rose 18 percent to $96 million.

Sales of the company's biggest drug, Cerezyme, a treatment for Gaucher disease, which causes enlargement of the liver and spleen, rose 13 percent to $262 million.

Sales of the company's kidney disease drug Renagel rose 22 percent to $135 million. The company has submitted an application with U.S. regulators for approval of a next-generation version of Renagel.

The Cambridge, Massachusetts-based company said it expects to launch the product -- to be called Renvela -- in 2008.

Genzyme said it will report full financial results on February 14.