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^® (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.

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^® (sevelamer carbonate) and the expanded European introduction of Clolar^® (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.

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^® (imiglucerase for injection) rose 15 percent to $304.3 million, compared with $263.8 million in the previous first quarter.

Sales of Fabrazyme^® (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^® (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^® (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^® (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^® (Anti-thymocyte Globulin [Rabbit]) and Lymphoglobuline^® (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^® (hylan G-F 20) and Synvisc-ONE^™ (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^® 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^® 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^® (alemtuzumab) in the treatment of patients with B-cell chronic lymphocytic leukemia.

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. Mozobil is an innovative product intended to enhance the mobilization of stem cells for transplantation in patients with lymphoma and multiple myeloma. In two pivotal clinical studies, Mozobil showed the ability to quickly and predictably prepare cancer patients for a transplant to treat their disease. Genzyme is also exploring additional indications for Mozobil, including its potential use in chemosensitization procedures.

Clolar is approved in the United States and Europe for the treatment of acute lymphoblastic leukemia in relapsed and refractory pediatric patients. Genzyme is developing the product for use globally as a first-line therapy for the treatment of adult acute myeloid leukemia (AML) and myelodysplastic syndromes, significantly larger indications that the company estimates will drive peak annual sales of the product to approximately $600 million. The company intends to submit a supplemental new drug application in the United States later this year to include an adult AML indication. This application will be based on results from the CLASSIC II clinical trial involving older adult AML patients. Preliminary data from this trial will be presented at the American Society of Clinical Oncology meeting in June.

Final, three-year efficacy and safety data from the Phase 2 trial comparing alemtuzumab with Rebif (interferon beta-1a) for the treatment of relapsing-remitting multiple sclerosis were presented last week during a scientific platform session at the American Academy of Neurology meeting by Dr. Alasdair Coles. These results confirm all trends observed in the one- and two-year interim analyses. The two ongoing Phase 3 trials further examining the efficacy and safety of alemtuzumab for the treatment of MS are progressing. These two studies are currently enrolling patients at sites in the United States, Europe, Latin America and Australia. Genzyme believes that alemtuzumab has the potential to be the best therapy in a market for MS drugs that is projected to reach $8-9 billion annually when the treatment is expected to be ready for launch in 2011-2012. Alemtuzumab is being developed in collaboration with Bayer Schering Pharma AG, Germany.

Genzyme is making excellent progress in developing the small molecule Genz-112638, a novel oral therapy intended for the treatment of Gaucher disease. Initial results released one year ago for the first group of study participants were encouraging. Genzyme expects to release results by mid year for a larger number of patients, including results for those patients who have completed the one year trial. Final results for all trial participants will be available in the first quarter of 2009. Genzyme is currently developing clinical trial protocols for two Phase 3 studies of Genz-112638, and the company anticipates initiating these studies early next year. Genzyme believes that this oral product may offer a more convenient treatment option for some patients.

Genzyme expects to finalize its license of mipomersen from Isis Pharmaceuticals in the second quarter and subsequently communicate a development plan for the product. Mipomersen is a lipid-lowering agent being developed primarily for patients at significant cardiovascular risk who are unable to achieve target cholesterol levels with statins alone or who are intolerant of statins. The product offers an innovative approach to addressing a serious unmet medical need, and Genzyme believes it could prove to be the most effective lipid-lowering agent for high risk cardiovascular disease patients for whom conventional therapies are not sufficient. The product may provide significant benefit over the standard of care and targets a well-defined and severely ill patient population. Mipomersen is currently being studied in a Phase 3 clinical trial involving patients with homozygous familial hypercholesterolemia.