Genzyme confirms strong 2006 guidance

USA-based biotechnology major Genzyme swung into profit in the fourth quarter of 2005 on lower spending on its R&D programs, confirming the strong preliminary results it released last month (Marketletter January 16).

Generally-Accepted Accounting Principles net income increased to $106.6 million, or $0.39 per diluted share, versus a net loss of $157.3 million, or $0.68 per diluted share, in the same period in the prior year.

On a non-GAAP basis, fourth-quarter net income grew 31% to $162.7 million, or $0.60 per diluted share, matching the consensus estimate from a Thomson Financial analyst poll. Revenue rose 23% to $728.7 million, slightly exceeding the $726.0 million predicted by the Thomson survey.