Protalix is a medium threat to Genzyme, because it could launch a product identical to Genzyme’s product as soon as 2009 or 2010.
For the first time, analysts of Genzyme (Nasdaq: GENZ) are taking seriously a possible threat from Israeli start-up Protalix Biotherapeutics Ltd. Protalix is about to begin Phase III clinical trials of its treatment for Gaucher’s Disease. The treatment competes against Genzyme’s Cerzyme, which generates $800 million a year in revenue.
Citigroup Global Markets, which covers Genzyme, recently held a conference call in order to allay what it said were exaggerated fears in the market about competition to Genzyme. Citigroup called Protalix a medium threat to Genzyme, because Protalix could launch a product identical to Genzyme’s product as soon as 2009 or 2010. The threat is medium because Genzyme has seniority and a reputation in the market. Citigroup said it would be hard to persuade doctors to replace treatments for patients already taking Cerzyme merely because the competition was cheaper.
Published by Globes [online], Israel business news - www.globes.co.il - on August 28, 2006
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