Genzyme says it's on track to meet financial goals
Genzyme Corp., a Cambridge biotechnology company, said that it is on track to meet its 2011 goal of 20 percent compound earnings growth, or $7.00 a share excluding items, based on strong sales of its drugs for rare and chronic diseases.
Speaking at the Goldman Sachs Healthcare conference, Henri Termeer, Genzyme's chief executive, said, "The key here is to bring other programs in to create growth drivers when we get there."
Analysts currently estimate Genzyme will post earnings excluding items in 2011 of $6.61 a share, according to Reuters Estimates, on revenue of $6.6 billion.
Termeer said he expects the company to continue to expand internationally, especially in Brazil, Russia, India, and China, the so-called BRIC countries.
"I would suggest that any company that does not become competent in how to do business in those countries in a way that is sustainable will be missing an opportunity over the next ten to 20 years," he said.
He also said he continues to believe in the value of a global pricing strategy, whereby the company prices its drugs at a similar level everywhere, or provides the drugs for nothing.
Termeer said he is optimistic that the new Obama administration will be supportive of additional funding for discovery research but that any attempt to impose price controls would have a "significant impact" on the market and lead to a reduction in the number of new therapies.
Genzyme has forecast 2009 earnings of $4.70 a share, excluding one-time items. (Reuters)
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