With 2009 earnings that are estimated at $4.70 a share, and despite the current dismal global economic conditions, Genzyme has announced that it is on track to meet its goal of 20% compound earnings growth, or $7.00 growth per share, by 2011.
Unlike many companies whose stock has evaporated in recent months, Genzyme enjoyed a 13% growth in revenue which rose to $1.17 billion in the final 3 months of 2008. The company bases its projections of continued sustainable growth through 2011 upon strong sales of its proprietary drugs for rare and chronic diseases, for which Genzyme currently has more than a dozen novel therapies in its pipeline, several of which are expected to receive FDA approval in the coming year alone.
Speaking in Boston at the Goldman Sachs conference on healthcare, Genzyme’s CEO, Henri Termeer, expressed confidence that the company will continue to expand internationally, especially into the so-called “BRIC” countries, namely, Brazil, Russia, India and China. According to Termeer, “The key here is to bring other programs in to create growth drivers when we get there. I would suggest that any company that does not become competent in how to do business in those countries in a way that is sustainable will be missing an opportunity over the next 10 to 20 years.”
Genzyme’s stock closed today at $65.41 per share, up $1.29 from its previous close yesterday.