Genzyme Corp.'s fourth-quarter earnings fell short of analyst expectations by 1 cent, though the company posted better-than-expected revenue figures driven by growing product sales.

For the quarter ended Dec. 31, the Cambridge, Mass.-based firm reported non-GAAP net income of $249.2 million, or 91 cents per share. Analysts had predicted earnings per share of 92 cents. The company, however, had warned investors that its 2007 acquisition of clofarabine partner, New York-based Bioenvision Inc., likely would drop its EPS by 1 cent for the three-month period. Genzyme bought Bioenvision in an all-cash deal valued at about $345 million. The company's total revenue for the quarter came in just above estimates at $1.04 billion for the fourth quarter. For the full year, Genzyme reported revenues of $3.8 billion. Its 2007 non-GAAP net income was $939.9 million, or $3.47 per share.

Much of the firm's revenue increase came from sales growth in its core lysosomal storage disorder portfolio, as reported at the JPMorgan conference in San Francisco last month, particularly from a strong market uptake of Pompe disease drug Myozyme (alglucosidase alpha), which posted sales of $62 million for the quarter and reached $201 million for the year. Sales of Fabry's disease product Fabrazyme (agalsidase beta) were $114 million for the quarter and $424 million for the year, and Genzyme said that drug has captured more than two-thirds of the international Fabry's disease market to date.

Cerezyme (imiglucerase for injection) sales were $301 million for the quarter and $1.1 billion for the year, while Aldurazyme (laronidase) totaled $34 million for the quarter and $122 million for year.

Fourth-quarter sales of Thyrogen (thyrotropin alpha for injection) grew to $31 million, and full-year sales totaled $114 million. Cerezyme is indicated for Gaucher's disease, Aldurazyme for mucopolysaccharidosis 1 (in partnership with BioMarin Pharmaceuticals Inc.) and Thyrogen for treatment and diagnostic use in thyroid cancer patients.

In its renal franchise, Genzyme reported sales of Renagel (sevelamer hydrochloride) of $167 million for the quarter and $515 million for the year. Its second product, Renvela, was approved in October to treat hemodialysis patients. And in oncology, the firm reported total sales - including sales of Clolar (clofarabine) and Campath (alemtuzumab) - of $26 million for the quarter and $88 million for the year.

For 2008, Genzyme anticipates revenues to total between $4.5 billion and $4.7 billion and projects annual revenue to reach $7 billion by 2012, driven by existing product sales and new product launches anticipated over the next couple of years.

The company expects to file in midyear for U.S. and European approval of Mozobil, a product aimed at facilitating and improving the outcome of stem cell transplantation procedures, which met its endpoint in two pivotal studies last year. Genzyme is looking to launch the product in early 2009 and has estimated peak annual sales totaling $400 million in the transplant space.

Also on the horizon is mipomersen, a late-stage lipid-lowering agent licensed last month from Carlsbad, Calif.-based Isis Pharmaceuticals Inc. in a potential $1.9 billion deal. That product is in Phase III testing in patients with homozygous familial hypercholesterolemia and a U.S. marketing application is expected in 2009.

Genzyme ended the year with about $1.5 billion in cash.

Its shares (NASDAQ:GENZ) lost $1.42 Wednesday to close at $75.30.