UPDATE 3-Genzyme first-quarter profit tops expectations

(Adds clinical details, CEO, analyst comment)

By Bill Berkrot

NEW YORK, April 23 (Reuters) - Genzyme Corp (GENZ.O: Quote, Profile, Research) reported a slightly better-than-expected first-quarter profit on Wednesday on strong demand for its drugs to treat rare diseases, and its shares rose more than 2 percent.

Excluding items, such as a large charge related to a licensing deal, the biotechnology company earned 95 cents per share, topping analysts' average expectations by 2 cents per share, according to Reuters Estimates.

"As they've been able to do, they put up a strong bottom line number and beat consensus," said Matthew Osborne, analyst for Lazard Capital Markets.

The Cambridge, Massachusetts-based biotechnology company posted a net profit of $145.3 million, or 52 cents per share, compared with a profit of $158.2 million, or 57 cents a share, a year ago.

The net results include an after-tax charge of $56.5 million related to Genzyme's deal with Isis Pharmaceuticals Inc (ISIS.O: Quote, Profile, Research) on mipomersen, its promising experimental cholesterol treatment.

"We are in the middle of finalizing our transaction with Isis on an extremely exciting program that we consider as a blockbuster looking forward," Chief Executive Henri Termeer told analysts on a conference call.

Termeer said the company continues to look for other deals that fit Genzyme's focus on rare, difficult to treat diseases.