GENZ: Don't Overlook This Biotech!

Genzyme Corp (GENZ) This Company may not have a blockbuster drug that's practically a household name, such as Pfizer's (PFE) Lipitor or Genentech's (DNA) Avastin. But that's no reason to overlook the Cambridge, Mass.-based biotech. Genzyme focuses on drugs to treat rare disorders, each of which affect fewer than 200,000 people in the U.S. It also develops treatments for oncology, orthopedics, and immune-system and kidney diseases. The biotech also has many other drugs in research and various clinical trial phases. Last month, Genzyme said it won exclusive rights to mipomersen from Isis Pharmaceuticals, (ISIS) which discovered and developed the cholesterol drug candidate. Also in June, Genzyme filed for marketing approval in the U.S. and the European Union for Mozobil, a drug candidate to help treat patients with lymphoma and multiple myeloma. Medical stocks can often provide long-term investors stable earnings and price performance. Even in a slowing economy, health care isn't an area people can easily cut back their spending on. After a slight dip in 2002, the biotech's annual profit has risen the past five years. It has a five-year earnings per share growth rate of 26%. Wall Street analysts expect earnings to rise 14% this year and 20% the next. The stock, which marked a record high Jan. 17, is shaping the right side of a base. It's 11% off its 52-week high. Genzyme reports second-quarter results July 23. Buy. Good Trading!