Genzyme Corp. (GENZ) has been under significant pressure following the shutdown of its Allston manufacturing facility in June 2009. The shutdown is a major setback for the company as three drugs including key product Cerezyme were being manufactured at the facility.
Although Genzyme has resumed production, new lots will not be available for commercial supply until later this year. We believe the impact of this shutdown will affect the company’s
performance in the second half of the year. In fact, Genzyme recently slashed its outlook for 2009.
Supply constraints, manufacturing issues, and delays in new product launches will continue to weigh on the shares in the coming quarters. We would avoid the name.Zacks Investment Research
