genz

Genzyne Corp.'s (NASDAQ: GENZ) stock has meandered since the June 19, 2009, Buy recommendation at $55.02, and it appears institutional investors have adopted a wait-and-see stance regarding the company.

Even so, I'm reiterating my Buy rating for GENZ. Here's why:

Analyst upgrades:

• Citigroup upgraded Procter & Gamble (NYSE:PG) to Buy from Hold after meeting with management as it believes a more aggressive strategy will lead to the company regaining market share. Citi raised its target on shares to $66 from $54.
  
• Piper Jaffray upgraded Allscripts (NASDAQ:MDRX) to Overweight from Neutral after learning the company signed a large contract with North Shore Long Island Jewish Hospital. Piper now sees upside to estimates and raised its target on shares to $22.50 from $14.
  
• UBS upgraded Amedisys (NASDAQ:AMED) to Buy from Neutral following a review of the Senate Finance Committee's healthcare proposal, which they view as "benign." The firm raised its target to $57 from $46.
• Daimler (NYSE:DAI) was upgraded to Outperform from Market Perform at Bernstein.
  
• Boston Private (NASDAQ:BPFH) was upgraded to Outperform from Market Perform at Keefe Bruyette.
  
• E-Trade (NASDAQ:ETFC) was upgraded to Buy from Neutral at Goldman.

The U.S. Food and Drug Administration (FDA) has some questions for Genzyme Corp. (NASDAQ: GENZ) regarding trial data for its leukemia drug, Clolar. Because Genzyme didn't follow the FDA's recommendations in conducting its main study of Clolar, the regulatory agency is reluctant to make a decision on the basis of the trial results.

In 2007, FDA staff advised Genzyme to conduct a randomized study in which participants receiving Clolar would be compared against a set of patients not receiving the drug. However, the drug company's primary tests did not include a control group; instead, the treatment was tested only on elderly patients with acute myeloid leukemia (AML).

Pharmaceutical drugmaker Genzyme (NASDAQ: GENZ), based in Cambridge, Massachusetts, specializes in creating drugs for rare diseases. Despite the small market, the Orphan Drug Act gives the company tax credits and enhanced patent protection, virtually guaranteeing that its drugs become blockbusters, like it's Gaucher's disease drug Cerezyme.

Recently, the company has halted production of the drug after a virus was discovered in production equipment at its Allston plant. Since the company expects a shortage in the supply of the drug, Genzyme said it would ask some consumers to conserve their stocks of the drug by temporarily skipping or reducing doses. The missed doses will not cause significant health problems, Genzyme said.