CS First Boston upgraded Genzyme (GENZ) to outperform from neutral.
Analyst Mark Augustine says the upgrade is based on an improved outlook. On Wednesday, Nov. 27, Fabry disease competitor Transkaryotic Therapies announced that a recent pivotal trial of Replagal, its enzyme replacement therapy, failed to meet its primary endpoint, he says. He reiterated his long-standing view that dose matters (benefiting Genzyme). He thinks it is highly likely that Genzyme has the only Fabry drug on the U.S. market in 2003. In addition, he believes it is quite possible that Transkaryotic Therapies' market share advantage in Europe (a 60/40 split) erodes.
Augustine sees earnings per share of $1.07 in 2002 and $1.45 in 2003. He also set a $40 12-month price target on the shares.