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Genzyme's Manufacturing Problems

Genzyme looks increasingly vulnerable after the temporary closure of its Allston manufacturing facility resulted in shortages of one of its primary products, Cerezyme. Analysts remain divided on the long-term consequences, but there's no denying the the gaffes have created an opening for medicines from competitors Shire and Protalix.

In a town hall-style teleconference held August 26, Genzyme Corp.'s long-time CEO Henri Termeer admitted that the shutdown of its Allston Landing, MA-based manufacturing facility because of viral contamination earlier this summer resulted in "many, big expensive lessons." We are only beginning to know just how expensive the tutorial could be.

In early August, the company revealed 2009 sales of its blockbuster Gaucher disease drug imiglucerase (Cerezyme) would be reduced from...

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