Genzyme Corp. reported Monday that product sales jumped131 percent in the second-quarter, the first period that showeda year-ago comparison on sales of Ceredase, the company's firstapproved drug
Given Ceredase's sales success, Genzyme officials easilypredicted a record-year performance for 1992.
Total revenues more than doubled to $52.7 million, andGenzyme posted a $14.2 million operating profit for the quartervs. a $158,000 loss for the comparable year-ago period.
However, Genzyme's bottom line for the recent quarter wasthrown into the loss column by two previously noted expensesconnected with the acquisition announced on June 30 ofongoing research programs from Neozyme Corp., its publiclytraded research and development unit.
Genzyme took a $51.1 million charge to earnings, equal to 14cents a share, for the purchase of the research and anadditional $16.9 million as a write-off of the value of itsNeozyme purchase option. Including those two charges,Genzyme reported a net loss of $56.4 million, or $2.67 a share,for the quarter ended June 30. In last year's comparableperiod, which included Ceredase's market launch, Genzymeposted a $3.2 million profit, or 14 cents a share.
Genzyme officials were heartened by the operating results."Halfway through the year, Genzyme continues to showdramatically improved revenues and profits," said HenriTermeer, Genzyme's chairman and chief executive officer.
Research and development spending increased 47 percent to$9.3 million during the quarter. The company had $51.5 millionin cash cash-equivalents as of June 30.
Genzyme's stock (NASDAQ:GENZ) of Cambridge, Mass., closedMonday at $52 a share, up 25 cents.
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