NN&I - June 2010

Business 20 Nephrology News & Issues June 2010Subscribe to our free eNewsletter at www.nephronline.comGenzyme buys back $2B in stock after investors' angerThe Genzyme Corporation, facing challenges from billion -aire chief investor Carl C. Icahn, said it would buy back $2 billion in stock and sell or spin off three units that were not part of its main business in rare-disease drugs. The investor dissatisfaction stemmed from contamina -tion at the company's Allston, Mass., manufacturing plant, which led to shortages of some of Genzyme's medicines.The company will repurchase $1 billion in stock in the near term, and finance it with debt. The other $1 bil- lion of stock will be repurchased in the next 12 months, Genzyme said.Investors will like the company's announcement, "but I don't think it will stave off Icahn completely," said Geoffrey Porges, an analyst for the investment research firm Sanford C. Bernstein & Company, in a Bloomberg article. Icahn had previously called for the replacement of four board members. Genzyme, the largest maker of medicines to treat genetic diseases, said it would sell, spin off, or allow a management buyout of its genetic testing, diagnostics, and pharmaceuti-cal ingredients businesses. Stocks in the NewsA look at first-quarter reports from Fresenius, NxStage, and Rockwell Information is solely for news purposes, not for advice on making trade decisions.Fresenius Medical Care AG May 4 reported Q1 profits of $211 million, a 7% increase compared to the first quarter of 2009. Sales increased 13% to $2.88 billion, with its FMC North America division revenue increasing 10% to $1.9 billion. Dialysis product revenue increased by 1% to $200 million, led by higher sales of hemodialysis disposables and pharmaceuticals. NxStage Medical Inc. reported Q1 financial results May 5 with total revenue above the top end of its guidance range. The dialysis products manufacturer reported that net revenue for the first quarter increased 20% to $40.4 million compared with revenue of $33.7 million for Q1 2009. Analysts' estimated revenue of $38.81 million, according to Thomson Reuters. Rockwell Medical reported Q1 results May 6 that included a profit increase of 94% to $2.3 million compared to the same quarter last year. Sales increased to $15 million, up 17.1% compared to the first quarter of 2009. Losses were $.4 million, compared to $1.7 million in the first quarter of 2009. Loss per share was 2 cents, compared to 12 cents per share in the first quarter of 2009. Fresenius Medical Care AG & Co. (FMS) NxStage Medical, Inc. (NXTM) 57 14 8 49 7 5 Dec.11 Jan.12 Feb.12 Mar.12 Apr.12 May 12 Dec.11 Jan.12 Feb.12 Mar.12 Apr.12 May 12 Dec.11 Jan.12 Feb.12 Mar.12 Apr.12 May 12 $53.57 $7.52 $6.35 $52.53 $8.75 $7.39 $56.11 $11.97 $5.80 $50.41 $8.73 $7.70 $54.42 $10.75 $6.05 $49.50 $13.89 $5.65Rockwell Medical (RMTI) Amylin loss narrows on lower expenses, despite Byetta's sag Merck halts development on its rival drug to Amgen's AranespAmylin Pharmaceuticals Inc posted a narrower net loss on April 19 helped by lower expenses, despite weaker sales from the diabetes drug Byetta. Amylin posted a net loss of $38.2 million, or 27 cents per share, compared with a net loss of nearly $47 million, or 34 cents per share, from the previous year. Amylin reported Byetta sales of $149.8 million com-pared with $157.7 million a year earlier. Amylin said it was preparing to make available in 2010 a once-weekly form of Byetta known as Bydureon. The company plans to respond this week to concerns by the U.S. Food and Drug Administration, which last month declined to immediately approve Bydureon. Merck and Co. announced May 11 that it suspended development of MK-2578, a follow-on biologic that was to compete with Amgen's anti-anemia drug Aranesp. The investigational drug was set to be one of Merck's first follow-on biologics, medicines that are similar, but not identical, to post patent biologics, and launch in 2012. Business0610_7.indd 20 5/14/10 2:06:24 PM