Genzyme's earnings surprise

After market close on Wednesday, GENZ reduced its 2002 revenue guidance to $1.1-$1.15 billion from $1.15-$1.2 billion, primarily due to lower sales expectations of Renagel sevelamer to treat end-stage renal disease. GENZ now expects 2002 EPS to be in the range of $1.18-$1.23, significantly below the $1.36 Street estimate.

It is the second time GENZ is pulling in the reins on growth of Renagel, a product that it got through the purchase of Geltex in 2000 (see BioCentury, Dec. 18, 2000). In March, GENZ nearly halved its first quarter sales estimate for the product - to $30 million from around $60 million - because of an inventory build up of the product. At the time, however, GENZ said the lower sales would not have an effect on 2002 revenue and earnings. ...