Genzyme reports 2005 revenue of $2.7 billion, expects revenue of $3.1-$3.3 billion in 2006

By Angela McDaniels

Seattle, Feb. 15 - Genzyme Corp.'s revenue for 2005 increased 24% to $2.7 billion from $2.2 billion in the previous year, according to a company news release. Fourth-quarter revenue increased 23% to $728.7 million from $591.1 million during the same quarter of 2004.

For 2006, Genzyme said it expects revenue of $3.1 billion to $3.3 billion, GAAP earnings of $1.78 to $1.88 per share and non-GAAP earnings of $2.65 to $2.75 per share.

For the full year 2005, GAAP net income was $441.5 million, or $1.65 per diluted share, compared with $86.5 million, or $0.37 per diluted share, in the previous year.

Non-GAAP net income increased 41% to $603.2 million, or $2.28 per diluted share, from $428.1 million, or $1.82 per diluted share, a year earlier, according to the release.

For the fourth quarter, GAAP net income increased to $106.6 million, or $0.39 per diluted share, compared with a net loss of $157.3 million, or $0.68 per diluted share, in the same period a year ago.

On a non-GAAP basis, fourth-quarter net income grew 31% to $162.7 million from $124.3 million and earnings increased to $0.60 per diluted share from $0.52 per diluted share.

"Last year, we solidified the diversified business model we have been building over the past five years, and this year we will start to exploit this diversified picture more directly," chairman and chief executive officer Henri A. Termeer said in the release.

Special expenditures in 2005 included $22.2 million in expenses related to the acquisition of Avigen Inc. and $16.9 million in charges for unsuccessful production runs of Cerezyme that occurred as the company's Allston Landing manufacturing plant shifted to full capacity following a 50% expansion of the facility. Genzyme said that improved systems for managing the higher volume at this multi-product facility have since been implemented.

Given the significant investments Genzyme will make during the first half of this year in late-stage clinical trials and product-launch activities, the company said that earnings per share will increase at a greater rate in the second half of the year than in the first.

Genzyme is a biotechnology company based in Cambridge, Mass.

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