Strong Year of Execution Produces Solid 2004 Financial Performance

Strong Year of Execution Produces Solid 2004 Financial
Performance
-- TKT Exceeds Guidance on 2004 Revenue, Net Loss and Cash -- 


CAMBRIDGE, Mass., Feb. 23  /PRNewswire-FirstCall/ -- Transkaryotic Therapies,
Inc. (NASDAQ:TKTX) today announced its consolidated financial results for the
three and twelve months ended December 31, 2004.

  2004 Financial Highlights at a Glance
  * Replagal sales increased 35% compared to 2003
  * Operating expenses increased 12% compared to 2003
  * Net loss per share decreased 13% compared to 2003
  * Cash and marketable securities amounted to $155 million at year-end



"In 2004 we achieved quarter-over-quarter sales growth with Replagal and
advanced our lead clinical programs at an impressive rate," said Michael
Astrue, President and CEO of TKT.  "We expect 2005 will be another important
year to achieve this same level of execution as we aim to bring the first
approved therapy to Hunter syndrome patients, to expand our Replagal franchise,
and to partner Dynepo outside the United States."

Total revenues for the three and twelve months ended December 31, 2004 were
approximately $23.0 million and approximately $78.1 million, respectively. 
Sales of Replagal(TM) (agalsidase alfa), TKT's enzyme replacement therapy for
Fabry disease, were approximately $22.5 million for the fourth quarter of 2004,
which represents an increase of 45% over the same period in 2003 and an
increase of 15% over the $19.5 million recorded in the third quarter of 2004. 
Compared to sales of approximately $57.2 million for the twelve months ended
December 31, 2003, Replagal sales totaled approximately $77.4 million for the
twelve months ended December 31, 2004, exceeding TKT's forecasted range of $67
million to $77 million.  A weaker dollar compared with the Euro contributed
about $2.4 million and $6.5 million to the increase in revenues for the three
months and year ended December 31, 2004, respectively.

Costs of goods sold in the fourth quarter of 2004 totaled approximately $7.5
million, or 33% of product sales, compared to approximately $1.4 million, or 9%
of product sales, for the corresponding quarter in 2003.  The increase in cost
of goods sold was attributed to increased unit sales as well as costs incurred
to improve the Replagal manufacturing process.  For the twelve months ended
December 31, 2004, cost of goods sold was approximately $16.4 million, or 21%
of product sales, compared to approximately $12.5 million, or 22% of product
sales, for the twelve months ended December 31, 2003.

Research and development expenses totaled approximately $22.5 million in the
fourth quarter of 2004, compared to approximately $18.3 million for the same
period in 2003.  For the year ended December 31, 2004, research and development
expenses totaled approximately $88.1 million, compared to approximately $74.1
million for the same period in 2003.  The increase in research and development
expenses was attributed primarily to clinical trial and manufacturing costs
associated with iduronate-2-sulfatase (I2S), enzyme replacement therapy for
Hunter syndrome, and Gene-Activated(R) glucocerebrosidase (GA-GCB), enzyme
replacement therapy for Gaucher disease, as well as contract manufacturing
development costs for Dynepo(TM) (epoeitin delta), TKT's Gene-Activated(R)
erythropoietin product for the treatment of anemia associated with renal
disease.

Selling, general and administrative (SG&A) expenses were approximately $13.3
million in the fourth quarter of 2004, compared to approximately $10.7 million
for the same period in 2003.  For the year ended December 31, 2004, SG&A was
approximately $44.2 million, compared to approximately $36.6 million for the
year ended December 31, 2003.  The increase in SG&A for the three and twelve
months ended December 31, 2004 was attributed primarily to higher sales and
marketing expenses associated with incentive compensation of the European sales
and marketing organization.

Net loss for the fourth quarter of 2004 was approximately $12.7 million, or
$0.36 per share, compared to a net loss of approximately $14.7 million, or
$0.43 per share, for the same period in 2003.  For the twelve months ended
December 31, 2004, net loss was approximately $65.9 million, or $1.89 per
share, compared to a net loss of about $75.2 million, or $2.18 per share, for
the twelve months ended December 31, 2003.  TKT expected its net loss for 2004
to be in the range of $70.0 million to $75.0 million.  Included in the net loss
were foreign currency gains totaling approximately $7.7 million for the three
months and year ended December 31, 2004, associated with amounts due from TKT
Europe.

At year-end 2004, the company had cash, cash equivalents, and marketable
securities of approximately $155.0 million, exceeding TKT's guidance of $125.0
million to $140.0 million.  Long-term debt totaled $94.0 million.

  Selected 2004 Highlights and Upcoming Milestones

  Replagal for Fabry Disease
  * TKT received marketing authorization for Replagal in Canada in February
    2004 and in Taiwan in April 2004, increasing to 34 the number of
    countries where it is approved.
  * TKT raised its estimate of the size of the worldwide Fabry market from
    5,000 patients to 8,000 - 10,000 patients.
  * TKT accelerated its Replagal sales targets and now expects to achieve
    Replagal sales of $95 to $105 million in 2005 and sales of greater than
    $100 million in 2006.
  * Following the annual re-assessment of Replagal in Europe, the Committee
    for Human Medicinal Products (CHMP) issued a positive opinion
    reaffirming the favorable risk/benefit profile of Replagal.

  I2S for Hunter Syndrome
  * In March 2004, TKT completed enrollment of its ninety-six patient
    pivotal trial evaluating I2S as a treatment for Hunter syndrome, making
    it the largest trial ever conducted for a lysosomal storage disorder.
    TKT expects to report top-line data in June 2005 and if the results are
    positive, to file applications for regulatory approval in the second
    half of 2005.
  * In July 2004, the FDA granted Fast Track designation to TKT for I2S.
    Fast Track regulations are designed to facilitate the development of
    products to treat serious or life-threatening diseases where an unmet
    medical need exists.
  * In September 2004, the FDA's Office of Orphan Products Development
    awarded TKT a $300,000 development grant for I2S, which will cover a
    portion of the I2S pivotal trial costs.
  * In 2004, TKT's second program for Hunter syndrome, designed to evaluate
    direct infusion of enzyme into the central nervous system (CNS),
    advanced into preclinical development.  Research findings, presented at
    the American Society of Human Genetics' 54th Annual Meeting, showed
    that repeated injections of I2S in animal models resulted in the
    accumulation of enzyme in various cells of the CNS.  TKT intends to
    file an IND for its I2S CNS program in the first half of 2006.

  GA-GCB for Gaucher Disease
  * In April 2004, TKT commenced an open-label Phase I/II clinical trial
    evaluating GA-GCB for the treatment of Gaucher disease in twelve
    patients.  TKT expects the Phase I/II trial to conclude in the second
    quarter of 2005 and TKT intends to report top-line data during the
    second half of 2005.
  * Preliminary safety data from the Phase I/II study indicates that
    treatment was generally well-tolerated.  These findings were presented
    at the American Society of Human Genetics Annual Meeting in October
    2004.

  Dynepo for Anemia
  * In March 2004, TKT regained exclusive rights to Dynepo outside the
    United States.  Subject to the establishment of manufacturing and
    commercial capabilities in the European Union, TKT expects a commercial
    partner to offer Dynepo for commercial sale in Europe during the first
    half of 2006.
  * In October 2004, TKT prevailed over Amgen in the U.K. Dynepo patent
    litigation.  The House of Lords upheld an earlier unanimous Court of
    Appeal decision that activities relating to Dynepo do not infringe
    Amgen's European patent and revoked the patent.  TKT also appealed to
    the Federal Circuit a U.S. District Court decision that activities
    relating to Dynepo infringed certain claims of Amgen's U.S. patents.

  Research Pipeline
  * TKT initiated a new research program outside the lysosomal storage
    disease area for familial hypercholesterolemia (FH).  TKT expects to
    complete research studies of TX-1501, its recombinant LDL receptor-
    transferrin fusion protein (LDLR/TF), in 2006.

  Business Activities
  * In October 2004, TKT completed its acquisition of the 20% minority
    interest in TKT Europe-5S for approximately $62.0 million in cash.
    With this purchase, TKT now owns 100% of its European operations.
  * In May 2004, TKT raised approximately $94.0 million through the sale of
    senior convertible notes due in 2011.
  * TKT expanded its management team across the organization with the
    appointment and promotions of the following executives:  Theresa
    Heggie, General Manager, Europe; Tamara Joseph, Vice President and
    General Counsel; Dr. Neil Kirby, Senior Vice President, Strategic
    Product Development; Dr. Kip Martha, Senior Vice President and Chief
    Medical Officer; Gregory D. Perry, Senior Vice President and Chief
    Financial Officer; and Linda Pettingell, Senior Vice President, Human
    Resources and Corporate Services.

  Upcoming Presentations
  * In the first quarter of 2005, TKT will present at the SG Cowen Health
    Care Conference being held in Boston, Massachusetts, March 14-17, 2005
    and the Lehman Brothers Healthcare Conference in Miami, Florida, March
    30-April 1, 2005.
  * In the second quarter of 2005, TKT will present at several health care
    conferences including Deutsche Bank's 30th Annual Health Care
    Conference in Baltimore, MD, May 2-4, 2005; The Rodman and Renshaw
    Techvest 2nd Annual Global Health Care Conference in Paris, France, May
    4-6, 2005; Banc of America's 2005 Health Care Conference in Las Vegas,
    NV, May 17-19, 2005; and Pacific Growth's Life Sciences Growth
    Conference in San Francisco, CA, June 6-8, 2005.

  Conference Call and Webcast


TKT invites the public to participate on a conference call and live webcast
with investment analysts beginning today, February 23, 2005, at 10:00 a.m.
Eastern Time to discuss its fourth quarter and full year 2004 financial results
and financial outlook for 2005 as well as an update on its Sarbanes Oxley
assessment of internal controls compliance efforts.  To participate by
telephone, dial [phone].  A live audio webcast can be accessed on the
TKT web site at http://www.tktx.com/ within the Investor Information section. A
replay of the call will be available for two weeks beginning at 1:00 p.m.
Eastern Time on February 23, 2005, by dialing [phone] and using the
access code: 6847230.  A replay of the webcast will be archived on the TKT web
site under Events in the Investor Information section.

About TKT

Transkaryotic Therapies, Inc. is a biopharmaceutical company primarily focused
on researching, developing and commercializing treatments for rare diseases
caused by protein deficiencies.  Within this focus, the company markets
Replagal(TM), an enzyme replacement therapy for Fabry disease, and is
developing treatments for Hunter syndrome and Gaucher disease.  Outside its
focus on rare diseases, TKT intends to commercialize Dynepo(TM), its Gene-
Activated(R) erythropoietin product for anemia related to kidney disease, in
the European Union.  TKT was founded in 1988 and is headquartered in Cambridge,
Massachusetts, with additional operations in Europe, Canada and South America. 
Additional information about TKT is available on the company's website at
http://www.tktx.com/.

Forward-looking Statements

This press release contains forward-looking statements including statements
regarding TKT's development of certain products, including Replagal, I2S,
GA-GCB and Dynepo, as well as statements containing the words "believes,"
"anticipates," "plans," "expects," "estimates," "intends," "should," "could,"
"will," "may," and similar expressions.  There are a number of important
factors that could cause the company's actual results to differ materially from
those indicated by such forward-looking statements, including: whether any of
the company's products will achieve the commercial success anticipated by the
company; the timing of submissions to and decisions by regulatory authorities
regarding clinical trials and marketing and other applications; whether the
FDA, the EMEA and equivalent regulatory authorities will grant marketing
approval for the company's products on a timeline consistent with TKT's
expectations, or at all; whether TKT will be able to complete clinical trials
of its products on a timely basis; whether the results of clinical trials will
be consistent with the results of earlier clinical trials of the company's
products and warrant submission of applications for regulatory approval for
such products to the FDA and equivalent regulatory authorities; whether TKT and
its third party manufacturers will be able to complete the manufacturing
development necessary to satisfy regulatory requirements on a timeline
consistent with TKT's expectations or at all and to manufacture sufficient
quantities of TKT's products to satisfy both clinical trial requirements and
commercial demand, or to manufacture material at all, if approved; the
availability and extent of coverage from third party payors and the timing and 
receipt of reimbursement approvals for the company's products; whether
competing products will reduce any market opportunity that may exist; whether
TKT will be able to enter into a collaboration agreement for Dynepo in Europe
and whether such collaboration will be successful; results of ongoing
litigation and the risks of future litigation; whether competitors will be able
to limit access to markets in which TKT is attempting to sell Dynepo, through
legal maneuvering or otherwise; the need for cash; and other factors set forth
under the caption "Certain Factors That May Affect Future Results" in the
company's quarterly report on Form 10-Q for the quarter ending September 30,
2004, which is on file with the Securities and Exchange Commission and which
factors are incorporated herein by reference. While the company may elect to
update forward-looking statements at some point in the future, the company
specifically disclaims any obligation to do so, even if its expectations
change.

Gene-Activated(R) is a registered trademark and Replagal(TM) is a trademark of
Transkaryotic Therapies, Inc. Dynepo(TM) is a trademark of Sanofi-Aventis SA.

  Condensed Consolidated Statements of Operations (unaudited)


  (In thousands, except per share amounts)
                                      Three Months Ended       Year Ended
                                          December 31,        December 31,
                                        2004      2003      2004      2003
  Product sales                       $22,452   $15,487   $77,372   $57,225
  License and research revenues           515        87       754     1,664
                                       22,967    15,574    78,126    58,889

  Operating expenses:
     Cost of goods sold                 7,460     1,439    16,367    12,484
     Research and development          22,474    18,332    88,148    74,062
     Selling, general and
      administrative                   13,299    10,694    44,192    36,557
     Restructuring charges                940     1,137     3,970    12,461
     Amortization of intangible
      assets                              509         -       509         -
     Intellectual property license
      expense                               -         -         -     1,350
                                       44,682    31,602   153,186   136,914
  Loss from operations before
   minority interest                  (21,715)  (16,028)  (75,060)  (78,025)
  Minority interest in net
   (income)/loss of consolidated
   subsidiary                               -      (108)       55      (413)
  Loss from operations after
   minority interest                  (21,715)  (16,136)  (75,005)  (78,438)
  Foreign currency exchange gain        7,702         -     7,685         -
  Net interest income                   1,308       876     1,877     2,704
  Gain/(loss) on disposal of fixed
   assets                                   2        44      (431)        -
  Other income                              -       500         -       500
  Net loss                           $(12,703) $(14,716) $(65,874) $(75,234)
  Basic and diluted net loss per
   share                               $(0.36)   $(0.43)   $(1.89)   $(2.18)
  Shares used to compute basic and
   diluted net loss per share          34,811    34,585    34,796    34,559


  Condensed Consolidated Balance Sheets (unaudited)

                                             December 31,      December 31,
  (In thousands)                                    2004              2003
  Cash and marketable securities                $155,214          $180,947
  Other current assets                            51,276            44,392
  Property and equipment, net                     60,992            61,908
  Goodwill                                        39,038                 -
  Intangible assets, net                          21,931                 -
  Other assets                                     4,899             1,922
     Total assets                               $333,350          $289,169
  Total current liabilities                      $36,735           $21,149
  Long term liabilities                            8,304             9,285
  Long term debt                                  94,000                 -
  Minority interest                                    -               413
  Total stockholders' equity                     194,311           258,322
     Total liabilities and
      stockholders' equity                      $333,350          $289,169


  For More Information Contact:
   Justine E. Koenigsberg
   Senior Director, Corporate Communications
   [phone]

   Daniella M. Lutz
   Corporate Communications Manager
   [phone]


http://www.newscom.com/cgi-bin/prnh/19990913/TKTLOGO

http://photoarchive.ap.org/

DATASOURCE: Transkaryotic Therapies, Inc.



CONTACT:  Justine E. Koenigsberg, Senior Director, Corporate

Communications, [phone], or Daniella M. Lutz, Corporate Communications

Manager, [phone] both of Transkaryotic Therapies, Inc.



Web site:  http://www.tktx.com/



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