By Bill Berkrot

NEW YORK (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.

"We will be interested to look outside and anywhere to find programs we can afford and that fit into the picture that we have developed over so many years," Termeer said.