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Genzyme Corp. Reports Strong Revenue Growth and Increased Guidance in Second Quarter 2005

Strategic Insights

— 1 min read

Genzyme Corp. announced a strong second quarter 2005, with revenue increasing 22% to $668.1 million from $549.6 million in the same quarter last year. The company's non-GAAP net income rose 46% to $149.0 million, and non-GAAP earnings per diluted share increased to $0.57 from $0.44. The company's gross margin in the second quarter was 78% of revenue, up from 74% in the same quarter last year. Genzyme's strong performance was driven by improved margins for Synvisc, Renagel, and enzyme replacement products, as well as the exit from the generic cyclosporine business. The company generated approximately $274 million in gross cash during the second quarter.

Key Takeaways:

  • Revenue increased 22% to $668.1 million in the second quarter 2005 from $549.6 million in the same quarter last year.
  • Non-GAAP net income rose 46% to $149.0 million, and non-GAAP earnings per diluted share increased to $0.57 from $0.44.
  • Gross margin improved to 78% of revenue in the second quarter, up from 74% in the same quarter last year.
  • The company generated approximately $274 million in gross cash during the second quarter.
  • Genzyme increased its 2005 revenue guidance to $2.6-2.8 billion from $2.5-2.7 billion.
  • The company also increased its GAAP earnings per share (EPS) guidance to $1.75-1.80 from $1.72-1.78 and its non-GAAP EPS guidance to $2.20-2.25 from $2.12-2.18.
  • Fees from sales of Renagel and Hectorol helped boost the company's revenue in the second quarter.

Statistics:

  • Revenue increased 22% to $668.1 million in the second quarter 2005 from $549.6 million in the same quarter last year.
  • Non-GAAP net income rose 46% to $149.0 million.
  • Non-GAAP earnings per diluted share increased to $0.57 from $0.44.
  • Gross margin improved to 78% of revenue in the second quarter, up from 74% in the same quarter last year.
  • The company generated approximately $274 million in gross cash during the second quarter.

Sources:

  • Health & Medicine Week via NewsRx.com, 2005.

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