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Genzyme Reports Strong First-Quarter Growth
PR Newswire, April 23, 2008
Non-GAAP EPS Increased 22 Percent
CAMBRIDGE, Mass., April 23 /PRNewswire-FirstCall/ -- Genzyme Corporation today reported results for the first quarter of 2008, which featured excellent revenue growth, continued operating leverage, a significant increase in non-GAAP profit, and strong progress across the company.
First-Quarter Highlights
-- Total revenue for the quarter grew 25 percent to $1.1 billion from
$883.2 million in same period a year ago. This increase was driven by
growth across all product lines, led by strong growth in sales of
treatments for lysosomal storage disorders and renal disease.
Genzyme's top line now includes sales of Aldurazyme(R) (laronidase),
which previously were recorded as joint venture revenue.
-- GAAP net income in the first quarter was $145.3 million, or $0.52 per
diluted share, compared with $158.2 million, or $0.57 per diluted
share. GAAP net income in this year's first quarter reflects an after-
tax charge of $56.5 million for the premium related to Genzyme's
strategic investment in Isis Pharmaceuticals Inc.
-- Non-GAAP net income increased 24 percent to $260.9 million, compared
with $210.7 million in the first quarter a year earlier. Non-GAAP
earnings increased 22 percent to $0.95 per diluted share from $0.78 per
diluted share in the first quarter last year.
-- Non-GAAP operating expenses decreased as a percentage of revenue,
reflecting global operating leverage.
-- Genzyme continued to generate significant cash from operations and to
reinvest in the future of the company. In the first quarter, Genzyme
generated approximately $373 million in cash from net income prior to
one-time events and proceeds from the issuance of common stock. The
company invested approximately $122 million in capital projects to
expand manufacturing capacity to meet current and anticipated product
demand. The company also made a $150 million investment in Isis
Pharmaceuticals associated with the license of mipomersen, a highly
promising product candidate in late-stage development.
-- Genzyme is also using a portion of its operating cash flow to
repurchase shares under a three-year program to reduce the dilutive
effect of equity compensation. The company repurchased 1 million
shares in the first quarter and has repurchased approximately 4.5
million shares since this program began one year ago.
"We had a very strong first quarter to start the year," said Henri A. Termeer, Genzyme's chairman and chief executive officer. "We continue to focus on our commitment to deliver 20 percent non-GAAP earnings growth through 2011, while building the company to ensure that we sustain our growth over the longer term."
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