Genzyme rated at buy by Merrill

Merrill Lynch analyst Eric Ende gave Genzyme Corp. a buy rating on news that the Medicare reimbursement rate for Synvisc, used for osteoarthritis, will be cut by about 40% to 50% beginning in 2007. The company will need to provide physicians with rebates to offset losses generated when administering the drug to Medicare patients, (or about half of patients), resulting in an effective price decrease of roughly 20% to 25%. Ende lowered his 2007 Synvisc sales estimate to $200 million from $260 million and reduced his 2007 earnings per share estimate to $2.74 from $2.82. Shares of the Cambridge, Mass.-based biotechnology company were down 81 cents, or 1.18%, at $67.88. (Nasdaq: GENZ)

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