Virus Shuts Down Production at Genzyme Facility (GENZ)
Genzyme Corp. (Nasdaq: GENZ) announced on Tuesday that a key production facility has been closed due to a viral contamination affecting the fabrication of two drugs, Cerezyme and Fabrazyme.
Genzyme ended trading on Tuesday down 2.87 (5.16%) with a closing price of 52.75.
The biotechnology company said the virus, which is not pathologically harmful to humans, was detected in one of six bioreactors at a facility in Boston, and as a precaution it will shut down the plant until the end of July in order to properly clean all of the equipment.
Bioreactors are used in the production of living cells, which are used to make biotech-based drugs. Fabrazyme treats an inherited disorder known Fabry disease, which is caused by the buildup of a particular type of fat the body’s cells. Cerezyme treats Gaucher disease, an enxyme disorder that can result in liver and neurological problems.
The virus, named Vesivirus 2117, is known to interfere with the growth of cells used to produce the biologic drugs and was likely introduced through a nutrient used in the manufacturing process. The company is adding steps to increase raw materials screening and viral removal processes.
Supplies of Cerezyme and Fabrazyme are running low and Genzyme is doing everything it can to speed up recovery efforts.
“The patients who need these therapies are our priority,” Chairman and CEO Henri A. Termeer said in a statement. “We are confident in the quality of the products produced in Allston and in our ability to resolve the issue affecting the plant.”
Analysts throughout Wall Street expect the supply constraints of Fabrazyme and Cerezyme to cut into the company’s revenue during the quarter, with some estimates shaving as much as $300 million in sales.
Joshua Sherman
