Genzyme posts record 4th-qtr 2010 revenues but cuts 2011 guidance, as Sanofi-Aventis talks continue

Leading US biotech group Genzyme (Nasdaq: GENZ) - the subject of a hostile takeover bid from French drug major Sanofi-Aventis (Euronext: SAN) - yesterday reported that preliminary fourth-quarter 2010 revenue grew 23% to $1.15 billion and for the full year advanced 2.5% to $4.1 billion. The unaudited figures were revealed by the firm’s chairman and chief executive, Henri Termeer at the JP Morgan 29th annual Healthcare Conference in San Francisco.

Fourth-quarter revenue from the Personalized Genetic Health business grew 46% compared with the same period in 2009, and 26% from the third quarter of 2010. This growth reflects increasing supplies of rare disease drugs Cerezyme (imiglucerase for injection) and Fabrazyme (agalsidase beta), which have seen severe sales declines due to manufacturing problems, and the US launch of Lumizyme (alglucosidase alfa).

Mr Termeer also confirmed that talks are in progress with Sanofi-Aventis regarding its $69/share - $18.5 billion - tender offer, that has consistently been seen as not reflecting Genzyme’s true value, with hopes that the two companies can come to an agreement on a deal involving contingent value rights based on the potential of its cancer drug alemtuzumab for use as a multiple sclerosis treatment. Earlier this week the French firm released a statement saying it would consider a CVR move (The Pharma Letter January 10).