Non-GAAP EPS Increased 22 Percent

CAMBRIDGE, Mass., April 23 /PRNewswire-FirstCall/ -- Genzyme Corporation(Nasdaq: GENZ) today reported results for the first quarter of 2008, whichfeatured excellent revenue growth, continued operating leverage, a significantincrease in non-GAAP profit, and strong progress across the company.

    First-Quarter Highlights    -- Total revenue for the quarter grew 25 percent to $1.1 billion from       $883.2 million in same period a year ago.  This increase was driven by       growth across all product lines, led by strong growth in sales of       treatments for lysosomal storage disorders and renal disease.       Genzyme's top line now includes sales of Aldurazyme(R) (laronidase),       which previously were recorded as joint venture revenue.
    -- GAAP net income in the first quarter was $145.3 million, or $0.52 per       diluted share, compared with $158.2 million, or $0.57 per diluted       share.  GAAP net income in this year's first quarter reflects an after-       tax charge of $56.5 million for the premium related to Genzyme's       strategic investment in Isis Pharmaceuticals Inc.
    -- Non-GAAP net income increased 24 percent to $260.9 million, compared       with $210.7 million in the first quarter a year earlier.  Non-GAAP       earnings increased 22 percent to $0.95 per diluted share from $0.78 per       diluted share in the first quarter last year.
    -- Non-GAAP operating expenses decreased as a percentage of revenue,       reflecting global operating leverage.
    -- Genzyme continued to generate significant cash from operations and to       reinvest in the future of the company.  In the first quarter, Genzyme       generated approximately $373 million in cash from net income prior to       one-time events and proceeds from the issuance of common stock.  The       company invested approximately $122 million in capital projects to       expand manufacturing capacity to meet current and anticipated product       demand.  The company also made a $150 million investment in Isis       Pharmaceuticals associated with the license of mipomersen, a highly       promising product candidate in late-stage development.
    -- Genzyme is also using a portion of its operating cash flow to       repurchase shares under a three-year program to reduce the dilutive       effect of equity compensation.  The company repurchased 1 million       shares in the first quarter and has repurchased approximately 4.5       million shares since this program began one year ago.

'We had a very strong first quarter to start the year,' said Henri A.Termeer, Genzyme's chairman and chief executive officer. 'We continue tofocus on our commitment to deliver 20 percent non-GAAP earnings growth through2011, while building the company to ensure that we sustain our growth over thelonger term.'

    Financial Guidance    -- Genzyme expects 2008 non-GAAP earnings of approximately $3.90 per       diluted share, compared with prior guidance of $4.00 per diluted share.       This previously announced adjustment reflects the delay in FDA approval       of 2000L production capacity for Myozyme.
    -- GAAP earnings in 2008 are expected to be approximately $2.65 per       diluted share, compared with prior guidance of approximately $2.75 per       diluted share.  GAAP figures include anticipated amortization and       stock-compensation expenses and the effect of contingent convertible       debt.
    -- Genzyme reaffirmed its commitment to 20 percent growth in compound non-       GAAP earnings per share through 2011.  Non-GAAP earnings are projected       to rise to approximately $7.00 per diluted share by 2011.
    -- Myozyme sales are expected to be approximately $275-$285 million this       year, compared to prior guidance of $320-$330 million.
    -- Non-GAAP earnings per share for the second quarter are expected to be       in the mid $0.90s, reflecting ongoing investments to drive future       growth.  These include investments in the U.S. launch of Renvela(R)       (sevelamer carbonate) and the expanded European introduction of       Clolar(R) (clofarabine), as well as investments in late-stage clinical       trials-particularly the phase 3 study of alemtuzumab for multiple       sclerosis.  This estimate also reflects the constraints on U.S. Myozyme       sales.
    First-Quarter Product Sales    -- Within the Therapeutics business, worldwide demand for Myozyme remains       robust two years into the product's launch.  First-quarter sales rose       78 percent despite the delay in U.S. approval for 2000L production       capacity.  Sales increased to $67.3 million from $37.9 million in the       period a year ago, driven by the number of new patients starting       therapy.  As announced, the FDA will require Genzyme to submit a BLA to       obtain U.S. commercial approval for Myozyme produced at the 2000L       scale.  The agency is expected to act on the application by the end of       this year.
    -- First-quarter sales of Cerezyme(R) (imiglucerase for injection) rose 15       percent to $304.3 million, compared with $263.8 million in the previous       first quarter.
    -- Sales of Fabrazyme(R) (agalsidase beta) grew 16 percent in the quarter,       rising to $116.5 million from $100.7 million in the first quarter last       year.  Fabrazyme has captured more than a two thirds share of the       international market for Fabry disease treatment based on compelling       clinical data and an established global regulatory and commercial       organization.
    -- Sales of Aldurazyme(R) (laronidase) increased 38 percent to $37.0       million in the first quarter, compared with $26.8 million in the same       quarter a year ago.  Genzyme now records sales of Aldurazyme on its top       line and makes tiered payments to BioMarin Pharmaceutical Inc. on       worldwide product sales under a restructured agreement between the       companies.
    -- Sales of Thyrogen(R) (thyrotropin alfa for injection) grew 28 percent       in the first quarter to $33.8 million from $26.3 million, reflecting       ongoing improvement in thyroid cancer detection and well-established       treatment guidelines.  The use of Thyrogen in ablation procedures is       also contributing to the product's growth, following the December 2007       U.S. approval for this indication.
    -- Within the Renal business, sales of sevelamer therapies Renagel(R)       (sevelamer hydrochloride) and Renvela grew 23 percent to $168.7 million       from $137.4 million in the first quarter last year.  In March, Genzyme       launched Renvela in the United States, where the company is engaged in       active discussions with the FDA to expand the product's labeling to       include chronic kidney disease patients with hyperphosphatemia who are       not on dialysis.  The three companies that currently market phosphate       binders are working collaboratively to provide the FDA with information       that will help the agency determine the appropriate treatment paradigm       for these patients.  Genzyme anticipates that the Renvela label       expansion will take place at the latest by the middle of 2009.  Genzyme       has also filed for European approval for Renvela in both the dialysis       and chronic kidney disease indications.
    -- Within the Transplant business, first-quarter sales of Thymoglobulin(R)       (Anti-thymocyte Globulin [Rabbit]) and Lymphoglobuline(R) (Anti-       thymocyte Globulin [Equine]) rose 11 percent to $43.7 million from       $39.4 million.  Worldwide demand for Thymoglobulin remains strong.  The       product's growth over the past several quarters has been hindered by       supply constraints caused by a manufacturing issue during 2007 that       affected product appearance in some lots.  Genzyme instituted a       procedure at its French manufacturing plant at the end of last year       that resolved this manufacturing issue.   The company continues to       monitor Thymoglobulin lots produced last year and, if necessary, will       recall any lots that are expected to go out of specification prior to       the originally established expiry period.  Genzyme expects       Thymoglobulin sales to accelerate in the second-half of this year as       supply levels increase to meet full demand for the product.
    -- Within the Biosurgery business, sales of Synvisc(R) (hylan G-F 20) and       Synvisc-ONE(TM) (hylan G-F 20) rose to $56.1 million from $53.6       million, an increase of 5 percent.  Synvisc-One received CE Mark       approval in the European Union in December, and Genzyme is preparing to       introduce the product into the marketplace, where it will be the only       treatment of its kind to provide six months of pain relief with a       single injection.  The company has already launched the product in the       United Kingdom, Germany and Italy.  Genzyme will pursue marketing       approvals for Synvisc-One in Canada, Asia and Latin America based on       the European CE mark approval, and FDA action on a marketing       application in the United States is expected later this year.  By       simplifying osteoarthritis pain management and thereby reaching a       broader set of patients, Synvisc-ONE is expected to drive the       significant growth of this product franchise.
    -- Sales of Sepra(R) products continued to be strong, rising 32 percent to       $30.6 million in the first quarter from $23.1 million in the same       quarter a year ago.  The expanded U.S. sales force for Seprafilm(R)       adhesion barrier is reaching a broader range of physicians and helping       drive the product's growth in gynecologic and colorectal surgery.       Future growth of the product in C-section procedures and trauma       surgeries is expected.
    -- First-quarter revenue for the Genetics business increased 12 percent to       $74.3 million from $66.2 million, fueled substantially by a higher       volume of reproductive diagnostic testing.  The profitability of the       Genetics business is also increasing through improvements in operating       efficiencies, while Genzyme continues to invest in additional       information technology and infrastructure to strengthen the competitive       advantages the business has created.  Genzyme Genetics recently       launched carrier and prenatal diagnostic testing for spinal muscular       atrophy, the most common inherited cause of infant mortality.  These       tests are expected to support continued profitable growth in subsequent       quarters.
    -- Oncology revenue increased 29 percent in the first quarter to $29.0       million from $22.4 million.  This growth primarily reflects the       addition of European sales of Clolar, which Genzyme began recording       following its acquisition of Bioenvision Inc. late last year.  Genzyme       is working to introduce Clolar worldwide through its global commercial       and regulatory organization.  Oncology revenue also reflects growing       first-line use of Campath(R) (alemtuzumab) in the treatment of patients       with B-cell chronic lymphocytic leukemia.

Late-State Development Programs

Genzyme continues to make strong progress in advancing programs within itslate-stage development pipeline. These programs have significant potential todrive the company's growth beyond 2011.

    Mozobil(TM) (plerixafor) for stem-cell transplantation
    -- Genzyme plans to file mid year for U.S. and European approval for       Mozobil's use in treating patients with multiple myeloma and patients       with lymphoma.  The company expects to launch the product in the United       States early next year upon approval and to rapidly expand the       product's availability around the world.  The company anticipates peak       annual sales of the product in the transplant setting of $400 million.