After its train wreck of manufacturing problems, Genzyme
Patients in the U.S. are now getting full supplies of Cerezyme, and international demand is expected to be met before the end of the year. Fabrazyme should be fully stocked during the first half of next year. Genzyme is on track to meet the deadlines set by the Food and Drug Administration's consent decree, including moving the filling step to services contracted from Hospira
But I still wouldn't buy.
The problem, as I see it, is that the upside doesn't justify the potential downside, especially when trying to figure out whether sanofi-aventis
But what happens if Sanofi walks away? Pfizer
That leaves what investors would be willing to pay for Genzyme's shares. Before Sanofi came in, that was about $54 per share. Surely Genzyme is worth more having proven that it's getting back on track. But one quarter doesn't make a turnaround, and the downside is still substantial if Sanofi pulls its offer.
Proceed with caution, Fools. I'll be watching this drama from the comfort of my living room sofa.
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