NEW YORK (CNN/Money) - Genzyme General, fresh off of a fourth-quarter earnings miss, now expects to miss analysts' estimates for the first quarter as well, primarily because of a reduction in wholesaler inventory levels for its fastest-growing product.

Genzyme General, the Cambridge, Mass.-based drugmaking and developing division of Genzyme Corp., said it now expects earnings to be hurt by about 10 cents a share, resulting in earnings between 21 cents and 23 cents a share for the first quarter ending this month. Analysts surveyed by earnings tracker First Call had been expecting first-quarter income of 33 cents a share.

Genzyme General (GENZ: Research, Estimates) said it is reducing wholesaler inventory levels as part of its program to build in-house inventory and increase manufacturing capacity to meet strong demand for its Renagel drug for patients with kidney disease. Renagel sales more than tripled in 2001, the company said, and it expects them to rise to between $260 million and $280 million in 2002. Genzyme now expects first-quarter revenue from Renagel of approximately $30 million, which would reflect the reduction in inventory levels to six weeks from 12 weeks.

The first quarter also will be affected by expenses associated with increasing manufacturing capacity to meet demand and manufacturing problems associated with the ramp-up, company executives explained in a Wednesday conference call with analysts.

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For the full year 2002, Genzyme General reaffirmed both its total revenue guidance of $1.15 billion to $1.20 billion and its earnings guidance of 25 percent growth.

On March 7, Genzyme General reported first-quarter earnings that missed Wall Street's expectations by a penny.

Looking further ahead, Genzyme General sees an opportunity to expand sales of Renagel beyond the kidney-dialysis market on which it is currently concentrated into the much-larger chronic kidney disease market, company executives said in the call.

Analysts challenged the company on several points during the conference call, showing particular concern about the way the company arrived at its projection for full-year 2002 Renagel sales of between $260 million and $280 million. After a protracted question-and-answer session, Genzyme General executives invited the analysts to call the company on an individual basis to follow up.

One analyst asked why Genzyme General wants to reduce inventories to six weeks when the pharmaceutical industry standard is between two and four weeks. The company's reply was that it wants to keep some excess inventory in the field because the drug has a growth rate of more than 50 percent, and particularly because in 2001 it was concerned at times about running out of the drug.

The manufacturing problems included some unexpected new-equipment problems as well as glitches associated with the nature of Renagel, the executives said. Most pharmaceutical tablets have a higher quantity of ingredients that facilitate manufacturing, but Renagel, because of the needs of kidney patients, has a very high percentage of the actual drug, they said, which makes it more difficult to manufacture.