Genzyme Corp.'s record $86 million in revenues for thesecond quarter of this year pushed the Cambridge, Mass.-based company's net income up 32 percent higher than ayear ago.
Earnings per share reached 46 cents, a 21 percent increaseover the 38 cents per share for the second quarter of 1994.The company's performance met or exceeded most WallStreet estimates, sending Genzyme's stock(NASDAQ:GENZ) up $3 Thursday to $48.50, a 6.5percent jump.
Net income for the quarter was $13 million, comparedwith $9.8 million last year.
Ceredase and Cerezyme, the company's lead products forGaucher's disease, set the pace for the second quartersales, bringing in $53 million, 24 percent more than ayear ago. The revenues of $86 million in the quarterending June 30 were 22 percent greater than product andservice sales for the second three months of 1994.
For the first half of this year, the company reported netincome of $25 million compared with $20 million a yearago. Earnings per share for the first six months were 89cents compared with 77 cents for the same period lastyear, a 15.6 percent increase.
Genzyme's record second quarter revenues continued atrend established in the first quarter of 1995 when salestopped $80 million. The company's net income for thefirst three months was $12 million, or 43 cents per share.
David Stone, an analyst with Cowen & Co. in Boston,said expectations for the rest of this year are even greaterfor Genzyme, which is slated to release within the nextfew months pivotal trial results of Seprafilm (HAL-F) andSepracoat (HAL-C) for prevention of surgical adhesionsduring gynecologic operations.
In January, Genzyme reported positive results forSeprafilm in pivotal trials for abdominal surgery. Datafrom those studies will be disclosed in October.
Seprafilm is a synthetic membrane derived fromhyaluronic acid, which is a polysaccharide foundnaturally in the body. Sepracoat, a related product, is acoating solution.
Stone said the HAL products could be Genzyme's biggestsellers and he anticipates a surge in the company's stockwhen results of the two pivotal trials are released. Thecompany has estimated the potential market for the anti-adhesion treatments at between $400 million and $1.4billion annually. n
-- Charles Craig
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