UPDATE 3-Genzyme 4th-qtr profit rises on higher drug sales

*Genzyme posts Q4 net profit of $86.7 mln, or 31 cents/shr

*Q4 revenue up 12.5 pct to $1.17 billion

*Sees 2009 non-GAAP EPS of $4.70/shr

*Shares up 1 percent (Adds CEO, analyst comment, byline)

By Toni Clarke

BOSTON, Feb. 11 (Reuters) - Genzyme Corp (GENZ.O) said on Wednesday its fourth-quarter earnings rose nearly 10 percent as it held down costs and generated higher sales of its drugs for rare and chronic diseases.

Net profit at the Cambridge, Massachusetts-based biotechnology company rose to $86.7 million, or 31 cents a share, from $78.9 million, or 29 cents a share, a year ago.

Henri Termeer, the company's chief executive, told analysts on a conference call that the company is well positioned to weather the economic downturn because it has a diversified product mix and is also geographically diverse, which mitigates foreign exchange fluctuations.

"We are benefiting from the way we are structured," Termeer said. "Global diversification is clearly very beneficial in managing through these tumultuous times."

Excluding one-time items, the company earned $1.04 a share. Analysts had expected the company to earn $1.03 according to Reuters Estimates.

Revenue rose 12.5 percent to $1.17 billion, from $1.04 billion a year ago. Analysts had expected $1.19 billion.

The company reiterated its 2009 forecast of $4.70 a share in earnings excluding one-time items and revenue of $5.2 billion to $5.4 billion.

"While the guidance does show the business is resilient, we think it leaves minimal room for further upside," said Geoffrey Meacham, an analyst at J.P. Morgan in a reseach note.

Sales of Myozyme, Genzyme's treatment for the rare muscle disorder Pompe disease, rose to $75 million from $62.5 million a year ago.

The company said it expects sales of Myozyme in 2009 of between $430 million to $440 million.

Myozyme was approved in 2006 but the company is seeking U.S. approval to manufacture it in greater quantities. An advisory panel to the U.S. Food and Drug Administration has recommended the agency approve the company's bigger 2000-liter bioreactor. Approval is expected by February 28th.