The good news is Genzyme's (Nasdaq: GENZ) drugs are still in high demand; the bad news is the company still can't make enough to keep up with the demand.

That's no way to run a business, especially when there are competitors on the market or in the wings.

Genzyme is still reeling from a viral contamination at its plant more than a year ago. Having to deal with a Food and Drug Administration consent decree, Boston's water issues, and moving the vial-filling step to its contractor, Hospira (NYSE: HSP), hasn't helped speed up the production any.

After a pitiful quarter -- revenue was down 12% -- Genzyme slashed annual guidance. It now expects to meet demand for Cerezyme in the fourth quarter and will be able to increase Fabrazyme shipments in the fourth quarter as well. Genzyme now expects total revenue this year in the $4.4 billion-$4.5 billion range, down from a high of $4.6 billion back in 2008.

The problem here is that Genzyme is giving its competitors an open invitation to snatch its market share. Fabrazyme, which treats Fabry disease, competes against Shire's (Nasdaq: SHPGY) Replagal. Shire also has a drug, Vpriv, which competes against Cerezyme for Gaucher disease patients, and Protalix BioTherapeutics (NYSE: PLX) and Pfizer (NYSE: PFE) are partnered on a drug that's up for FDA review for the same indication.

Genzyme took on debt to buy back shares, which will look like a great move at these depressed prices, but only if the company is able to turn things around. Whether you should follow the company's lead and invest depends on your confidence that management can avoid any further roadblocks to growth. Considering the history of the company, that's no small feat.