Genzyme (NASDAQ:GENZ) EPS Outlook Lower on Weak Cerezyme, Fabrazyme Rebound

The strength of the recovery of Cerezyme and Fabrazyme haven't met Genzyme's (NASDAQ:GENZ) expectations, and consequently they aren't going to meet earnings guidance for the fourth quarter of 2010.

Barclays says, "GENZ CEO Henri Termeer provided a corporate update today at an industry conference with focus on supply recovery, business growth and it's late stage pipeline, in particular Campath MS. Pre-release of 4Q10 results suggests lower-than-expected EPS of $0.80-$0.85 versus prior guidance of $0.90-$0.95 on weaker-than-expected Cerezyme and Fabrazyme recovery and sales of $224M and $62M versus prior guidance of $235M-$245M and $70M respectively. Updated EPS guidance for 2011 was also lowered to $4.10-$4.35 from $4.30-$4.60. Capacity expansion remains on track with validation runs expected in January although GENZ continues to operate without appropriate inventory cushions pending Framingham approval by YE11."

Barclays reiterates an "Equalweight" rating on Genzyme, which closed Wednesday at $72.34, level with Tuesday's close. Barclays has a price target of $75 on Genzyme.