Analysts said Thursday that Genzyme Corp. is poised for solid revenue growth after the biotechnology company gave an update on the drug candidates it is developing.
The Cambridge, Mass., company held its annual analyst day Wednesday, detailing its plans and schedules for drug candidates including Myozyme, a treatment for the muscle disorder Pompe disease.
Baird analyst Christopher Raymond said Myozyme is on track for U.S. approval by the end of the year, and he thinks sales will grow to $529 million in 2011. He added that by mid-2009, the kidney disease treatment Renvela should be approved for use in predialysis patients, which will increase its revenue to $313 million in revenue in 2011.
Raymond rates the stock "Outperform," with a price target of $83 per share. Genzyme stock finished at $69.07 Wednesday.
Separarely on Wednesday afternoon, Genzyme said preliminary data from a midstage trial of drug candidate Genz-112638 showed the product was effective in treating Gaucher disease, a rare condition that harms the body's ability to process fat.
Genz-112638 increased the levels of hemoglobin in patients' blood, Genzyme said, and lessened enlargement of the spleen.
Oppenheimer analyst Brian Abrahams said the company presented good results from a midstage trial of clofarabine, a cancer drug. He said Genz-112638 and clofarabine could both be major contributors to Genzyme's revenue.
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