Genzyme Corporation: PharmaVitae Profile

Genzyme Corporation: PharmaVitae Profile
CHAPTER 1 ABOUT THIS PROFILE 2

Executive summary 2

Quarterly news update 2

Company introduction 2

Company sales 2

Company financials 2

Key products and competitors 3

Data sourcing 3

Sales data 3

Analyst consensus 3

CHAPTER 2 EXECUTIVE SUMMARY 4

Key findings 4

Prescription pharmaceutical sales performance, 2001-13 6

Financial performance, 2001-13 8

Genzyme: PharmaVitae forecasts at a glance 9

Strategic insight 10

Genzyme success in ultra-niche markets 10

Combination of fast revenue growth and margin improvement leads to explosive profit growth 10

With the blockbuster model under threat, Genzyme's niche market strategy looks set to hold firm 13

High-risk blockbuster model out-dated? 13

Genzyme's niche market-targeting an alternative strategy 14

Greater economies of scale as rare genetic disorders franchise expands 14

Although the company's leading therapeutic is under threat 16

Future competition: diversifying into new therapy areas; Genzyme's spread-risk strategy 17

The renal franchise is Genzyme's first major example of therapeutic diversification 18

Further therapeutic diversification 18

SWOT analysis 20

Strengths 20

Weaknesses 20

Opportunities 21

Threats 21

CHAPTER 3 QUARTERLY NEWS UPDATE 24

Quarterly sales update, Q408 24

Product developments 26

Deals and alliances 28

Product deals 28

Technology deals 29

M&A activity 30

Company announcements 31

Future product milestones 32

CHAPTER 4 COMPANY INTRODUCTION 33

Key findings 33

Background 34

Key corporate developments 35

M&A history 36

Bone Care International 36

AnorMED acquisition 37

Mozobil: the catalyst 37

Bioenvision 38

Current corporate structure 39

Biotherapeutics 39

LSDs 40

Genetics/diagnostics 41

CHAPTER 5 COMPANY SALES 42

Key findings 42

Prescription pharmaceutical sales and growth rate analysis, 2001-13 43

Product analysis 46

Product analysis, 2001-07 47

Product analysis, 2007-13 50

Therapy area analysis 54

Therapy area analysis, 2001-07 56

Therapy area analysis, 2001-07 56

Therapy area analysis, 2007-13 58

Therapy area focus, 2001-13 61

Geographic analysis 63

Geographic analysis, 2001-07 64

Geographic analysis, 2007-13 67

Geographic focus, 2001-13 70

Launch/core/expiry analysis 71

Explanation of launch/core/expiry analysis 71

Launch analysis, 2007-13 72

Core analysis, 2007-13 74

Expiry analysis, 2007-13 75

Launch/core/expiry configuration, 2007-13 77

Molecule type analysis 79

Molecule type analysis, 2001-07 80

Molecule type analysis, 2007-13 82

Externalization analysis 85

Externalization analysis, 2001-07 86

Externalization analysis, 2001-07 86

Externalization analysis, 2007-13 88

CHAPTER 6 COMPANY FINANCIALS 91

Key findings 91

Reconciliation between PharmaVitae-formatted prescription pharma sales and company-reported total sales, 2001-07 92

Financial statements, 2001-07 94

Profit and loss account, 2001-07 94

Balance sheet, 2001-07 96

Operating costs and profit analysis 98

Operating costs and profit analysis, 2001-07 99

Operating costs and profit analysis, 2001-07 99

Operating cost ratio and profit margin analysis, 2001-07 100

Operating cost ratio and profit margin analysis, 2007-13 101

Operating costs and profit analysis, 2007-13 104

RoCE analysis 106

Capital employed analysis, 2001-07 107

Capital employed analysis, 2001-07 107

RoCE (RoCE) analysis, 2001-07 109

CHAPTER 7 KEY PRODUCTS AND COMPETITORS 112

Key findings 112

Overview 113

Endocrine, metabolic and genetic disorders 114

Cerezyme 114

Overview 115

Sales forecast 116

Myozyme 119

Overview 120

Sales forecast 121

Fabrazyme 123

Overview 124

Sales forecast 125

Urology and gender-specific health 127

Renagel/Renvela 127

Overview 128

Sales forecast 129

Hectorol 132

Overview 133

Sales forecast 134

Oncology 136

Mozobil 136

Overview 137

Sales forecast 138

Clolar 140

Overview 141

Sales forecast 142

Cardiovascular 144

Mipomersen 144

Overview 145

Sales forecast 146

CHAPTER 8 APPENDIX 148

R&D pipeline 148

Abbreviations 149

List of Tables

Table 1: Genzyme - PharmaVitae forecasts at a glance 9

Table 2: Genzyme quarterly global sales update ($m), Q4 2008 24

Table 3: Genzyme key product developments, 2008 26

Table 4: Genzyme product deals and alliances, 2008 28

Table 5: Genzyme technology deals and alliances, 2008 29

Table 6: Genzyme M&A activity, 2008 30

Table 7: Genzyme company announcements, 2008 31

Table 8: Genzyme future product milestones, 2009-11 32

Table 9: Genzyme's acquisition history (2000-2008) 36

Table 10: Genzyme product portfolio overview ($m), 2001-07 47

Table 11: Genzyme product portfolio overview ($m), 2007-13 50

Table 12: Genzyme portfolio overview, by therapy area ($m), 2001-07 56

Table 13: Genzyme portfolio overview, by therapy area ($m), 2007-13 58

Table 14: Genzyme portfolio overview by geographic region ($m), 2001-07 64

Table 15: Genzyme portfolio overview by geographic region ($m), 2007-13 67

Table 16: Genzyme launch portfolio overview ($m), 2007-13 72

Table 17: Genzyme core portfolio overview ($m), 2007-13 74

Table 18: Genzyme expiry portfolio overview ($m), 2007-13 75

Table 19: Genzyme portfolio overview by molecule type ($m), 2001-07 80

Table 20: Genzyme product portfolio overview by molecule type ($m), 2007-13 82

Table 21: Genzyme product portfolio overview by source ($m), 2001-07 86

Table 22: Genzyme product portfolio overview by source ($m), 2007-13 88

Table 23: Total Genzyme sales by business unit ($m), 2001-07 92

Table 24: Genzyme profit and loss account ($m), 2001-07 94

Table 25: Genzyme balance sheet ($m), 2001-07 96

Table 26: Genzyme operating revenue/cost analysis ($m), 2001-07 99

Table 27: Genzyme operating cost ratio analysis (% of total revenues), 2001-07 100

Table 28: Genzyme operating cost ratio analysis (% of total revenues), 2007-13 101

Table 29: Genzyme operating revenue/cost analysis ($m), 2007-13 104

Table 30: Genzyme capital employed ($m), 2001-07 107

Table 31: Genzyme EBIT RoCE ($m), 2001-07 109

Table 32: Genzyme EBIT pre-tax return/capital employed driver analysis (%), 2001-07 110

Table 33: Key products overview 113

Table 34: Cerezyme: overview 115

Table 35: Cerezyme: sales forecast ($m), 2007-13 116

Table 36: Myozyme: overview 120

Table 37: Myozyme: sales forecast ($m), 2007-13 121

Table 38: Fabrazyme: overview 124

Table 39: Fabrazyme: sales forecast ($m), 2007-13 125

Table 40: Renagel/Renvela: overview 128

Table 41: Renagel/Renvela: sales forecast ($m), 2007-13 129

Table 42: Hectorol: overview 133

Table 43: Hectorol: sales forecast ($m), 2007-13 134

Table 44: Mozobil: overview 137

Table 45: Mozobil: sales forecast ($m), 2007-13 138

Table 46: Clolar: overview 141

Table 47: Clolar: sales forecast ($m), 2007-13 142

Table 48: Mipomersen: overview 145

Table 49: Mipomersen: sales forecast ($m), 2007-13 146

Table 50: Genzyme's R&D pipeline (Phase I-registration) 148

List of Figures

Figure 1: Genzyme prescription pharmaceutical performance, sales ($m) and growth rate (%), 2001-13 7

Figure 2: Genzyme's financial performance ($m), 2001-13 8

Figure 3: Genzyme's explosive operating profit growth 12

Figure 4: Genzyme's rare genetic disorders franchise exhibiting economies of scale 15

Figure 5: Genzyme's leading LSDs therapies sales forecasts 17

Figure 6: Genzyme SWOT analysis 20

Figure 7: Top 10 product sales ($m), forecast vs. actual, 2008 25

Figure 8: Genzyme timeline 35

Figure 9: Current corporate structure 39

Figure 10: Genzyme prescription pharmaceutical performance, sales ($m) and growth rate (%), 2001-13 44

Figure 11: Genzyme key sales growth driver & resistors ($m), 2001-07 48

Figure 12: Genzyme key sales growth drivers and resistors ($m), 2007-13 51

Figure 13: Genzyme prescription pharmaceutical sales by therapy area ($m), 2001-13 55

Figure 14: Genzyme prescription pharma sales by therapy area (% of total), 2001-13 61

Figure 15: Genzyme prescription pharmaceutical sales by geographic region ($m), 2001-13 63

Figure 16: Genzyme growth drivers and resistors by geographic region ($m), 2001-07 65

Figure 17: Genzyme drivers and resistors by geographic region ($m), 2007-13 69

Figure 18: Genzyme prescription pharmaceutical sales by geographic region (% of total), 2001-13 70

Figure 19: Genzyme launch/core/expiry configuration ($m), 2007-13 77

Figure 20: Genzyme prescription pharmaceutical sales by molecule type ($m), 2001-13 79

Figure 21: Genzyme growth drivers and resistors by molecule type ($m), 2007-13 83

Figure 22: Genzyme prescription pharmaceutical sales by source ($m), 2001-13 85

Figure 23: Genzyme growth drivers and resistors by source ($m), 2001-07 87

Figure 24: Genzyme growth drivers and resistors by source ($m), 2007-13 89

Figure 25: Genzyme operating revenue/cost analysis ($m), 2001-13 98

Figure 26: Genzyme operating cost ratio analysis (% of total revenues), 2001-13 103

Figure 27: Genzyme RoCE, EBIT margin and capital turnover, 2001-07 106

Figure 28: RoCE formula 110