) 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.