progress toward fully resolving the production issues that emerged in
mid-2007. In addition, the FDA has accepted the company's responses
to the warning letter issued last year.
-- Total revenue for the Diagnostics/Genetics business is expected to
reach $475-$485 million this year, compared with $411 million in 2007.
The Genetics business has been experiencing particularly strong growth,
driven by an increasing demand for diagnostic testing services. Genzyme
is investing in additional information technology and infrastructure to
continue to strengthen the competitive advantages the Genetics unit has
-- Sales of Aldurazyme are expected to increase to $135-$145 million this
year, compared with $123 million in 2007. Genzyme will record sales of
Aldurazyme and make tiered payments to BioMarin on worldwide product
sales. These payments will be recorded as a cost of goods sold.
-- Genzyme's recognition of Aldurazyme revenue and the associated payments
to BioMarin will reduce the gross margin by approximately 1 percentage
point without any net impact on the bottom line. The non-GAAP gross
margin for 2008 is expected to be approximately 77 percent of revenue.
-- Non-GAAP selling, general and administrative expenses are expected to
represent approximately 27 percent of revenue in 2008, consistent with
SG&A expenses in 2007. SG&A spending reflects the integration of
Bioenvision and the European rollout of Clolar, the ongoing
introduction of Myozyme, the sales force expansion associated with the
launch of Renvela, and the expanded U.S. sales effort for Sepra(R)
-- Non-GAAP research and development spending is expected to represent
approximately 17 perce
|SOURCE Genzyme Corporation|
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