Genzyme Reports Strong Second-Quar...(/p services sold ...)

services sold $(6,311) $(300,330)

Selling, general and

administrative $(31,904) $(347,305)

Research and development $(175,000) $(16,092) $(381,861)

Amortization of intangibles $(55,605) $(55,605)

Purchase of in-process

research and development $-

Equity in income (loss) of

equity method investments $-

Minority interest $563

Gains (losses) on

investments in equity

securities $9,153

Other $19

Investment income $13,352

Interest expense $(1,149)

Summary:

Income (loss) before income

taxes $(175,000) $(55,605) $(54,307) $107,971

(Provision for) benefit

from income taxes $33,749 $29,615 $16,834 $(38,407)

Net income (loss) $(141,251) $(25,990) $(37,473) $69,564

Net income (loss) per share:

Basic $(0.53) $(0.10) $(0.14) $0.26

Diluted (1) $(0.50) $(0.09) $(0.13) $0.25

Weighted average shares

outstanding:

Basic 266,904

Diluted (1) 284,262

(1) GAAP As-Reported diluted earnings per share and diluted weighted

average shares outstanding reflect the adoption of EITF 04-8. In

accordance with the provisions of EITF 04-8, interest and debt fee
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