Strong third quarter for Genzyme: GAAP net income reaches $159M on the back of good sales

US biotechnology major Genzyme's third-quarter 2007 profit was driven by strong product sales and continued operating leverage. The firm's income grew 19% on the like, year-ago period, to $960.2 million, as generally-accepted accounting principles net income rose to $159.3 million, or $0.58 per diluted share, versus $16.0 million, or $0.06 per diluted share. On the day of the news, October 24, Genzyme's shares rose 3% to $75.73.

Non-GAAP net income grew 23% to $241.3 million, or $0.90 per diluted share, which excludes a pretax stock-compensation expense of $44.4 million, amortization of $49.8 million, a charge of $19.2 million related to the acquisition of Bioenvision (Marketletter October 29), as well as a manufacturing-related cost of $11.8 million. "We grew earnings at a compound average of more than 20% over the past decade, and we are committed to delivering a similarly strong rate of growth over the next five-year period," said Genzyme chairman and chief executive Henri Termeer.

During the period, sales of the Pompe disease drug Myozyme (alglucosidase alfa) rose to $53.6 million from $20.4 million and Genzyme hopes to submit an application to the US regulator by the end of October 2007 for approval of a larger-scale manufacturing process to supply the agent to the domestic market. The agency's decision is expected in the first quarter of next year. Production at this larger scale is already approved by more than 30 countries.