Transkaryotic Therapies (TKTX) entered into agreements with Genzyme (GENZ). Pacific Growth reiterated its overweight recommendation on Transkaryotic.
Analyst Thomas Dietz says Transkaryotic entered into various agreements with Genzyme, including granting Genzyme a license to develop and commercialize Transkaryotic's Hunters Syndrome product in the Pacific Rim, with Genzyme paying the company $1.5 million up front and 33% to 35% of sales. Dietz notes Transkaryotic also granted Genzyme an option to license its San Filipo product in the Pacific Rim. Further, Genzyme paid Transkaryotic $1.5 million to settle litigation between the two companies. The analyst says the Genzyme deals should reflect favorably on Transkaryotic's management team.
Dietz narrowed his 54-cent fourth quarter loss per share estimate for Transkaryotic to a loss of 50 cents, and his forecast of a $2.18 loss in 2003 to a $2.13 loss.