UPDATE 2-Genzyme net profit falls, sticks by forecast

(Recasts, adds analyst comment, pipeline details, share price, byline)

By Bill Berkrot

NEW YORK, July 23 (Reuters) - Genzyme Corp (GENZ.O: Quote, Profile, Research, Stock Buzz) reported second-quarter results on Wednesday that exceeded expectations, but it failed to raise its full-year earnings forecast and announced another delay in large-scale production of a newer drug, sending its shares down about 3 percent.

Net profit fell 20 percent on costs for licensing a promising cholesterol medicine, but revenue jumped 25 percent on strong demand for its drugs to treat rare diseases and genetic disorders.

The Cambridge, Massachusetts-based biotechnology company posted a net profit of $69.6 million, or 25 cents per share, compared with a profit of $83.8 million, or 31 cents a share, a year earlier.

Excluding items, Genzyme earned 98 cents per share, edging analysts' average expectations by a penny, according to Reuters Estimates.

The company said net results reflect a $175 million payment to Isis Pharmaceuticals Inc (ISIS.O: Quote, Profile, Research, Stock Buzz) to secure the rights to its highly anticipated mipomersen treatment for extreme high cholesterol.

Genzyme said it still expects full-year earnings, excluding items, of about $3.90 per share. Wall Street is betting it will top that and is estimating $3.94 per share.

Revenue for the quarter rose 25 percent to $1.17 billion, helped by increases across all of Genzyme's drug portfolios. That topped Wall Street estimates of $1.13 billion.