Preliminary view of Genzyme Q3/09 financials:
I view this release as negative, adjusted earnings of $0.31 per share well below my modest estimate of $0.39 per share. Total revenue came in at $1.06 billion compared to my estimate of approximately $1.09 billion. This is largely due to slightly lower than expected Genetic Disease, Hematologic Oncology, and other product revenue. Also weighing down on earnings was the higher than expected operating costs, including the significantly higher COGS and SG&A (compared to my estimates).
No significant news on the Cerezyme/Fabrazyme front, or the Clolar front, in my opinion. Lumizyme PDUFA is the next major catalyst.
Reiterate near-term SELL recommendation based on this news.
More to come later today.
Disclosure: the author is not long, nor is he short shares of GENZ.