Genzyme continues to work through massive manufacturing and regulatory woes which have battered its financial performance and investor confidence. And, now the company has announced what its future may hold.
Financial projections released this week reflect the effects of Genzyme’s travails over the past few months. The company projects 2010 revenue of $4.4 billion to $4.5 billion. A year ago, analysts were projecting 2010 revenue of $5.8 billion. For the quarter, Genzyme reported a profit of just $23,000, down from $187.6 million a year earlier.
The Cambridge-based company is conducting a review of the entire company’s costs and developing “a multiyear action plan” that will make the company look much different from its current form including a divestiture of its genetics, diagnostics, and pharmaceuticals businesses by year’s end.
On the bright side, the company expects supply of Gaucher’s disease treatment Cerezyme and Fabry disease drug Fabrazyme to rise later this year as manufacturing improvement take hold under a consent decree with the FDA.
