Genzyme reports quarterly rise in profit

Genzyme Corp. said today its third-quarter profit rose on higher sales compared with a year-ago period weighed by a hefty charge.

The Cambridge biotechnology company earned $159.3 million, or 58 cents per share, compared with a profit of $16 million, or 6 cents per share, during the same period a year prior.

Excluding pretax compensation expenses, amortization costs and a charge for Genzyme's buyout of Bioenvision, the company said it earned 90 cents per share in the recent quarter. In the year-ago period, Genzyme recorded adjusted income of 61 cents per share, excluding stock-based compensation costs and a charge related to its genetic testing business.

Revenue rose 19 percent to $960.1 million from $808.6 million.

Analysts polled by Thomson Financial expected profit of 87 cents per share on revenue of $954.7 million. Analysts typically exclude special items from their estimates.

During the recent quarter, Genzyme generated $280 million in cash from operations.

Sales of the kidney disease drug Renagel rose 14 percent to $154.2 million, while sales of another kidney disease drug, Hectorol, rose 19 percent to $30.3 million.

Sales of the transplant drugs Thymoglobulin and Lymphoglobuline rose 9 percent to $41 million. Meanwhile, sales of the osteoarthritis treatment Synvisc rose 9 percent to $61.2 million.

Genetic diagnostics sales rose 19 percent to $73.1 million. Oncology revenue rose 38 percent to $22.7 million.

In July, the company said it expects adjusted earnings to grow at a compound average of 20 percent between 2006 and 2011. In a statement, Genzyme said it expects to add $4 per share to adjusted earnings next year and projects earnings to rise to about $7 per share by 2011.

Shares of Genzyme rose $1.27 to $74.78 in morning trading on the Nasdaq Stock Exchange. (AP)