Jazz Pharmaceuticals (JAZZ) came out with a quarterly loss of $8.25 per share versus the Zacks Consensus Estimate of a loss of $6.12. This compares to earnings of $5.3 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -34.80%. A quarter ago, it was expected that this drugmaker would post earnings of $4.51 per share when it actually produced earnings of $1.68, delivering a surprise of -62.75%. Over the last four quarters, the co ...

Financial Data and Key Metrics Changes - Jazz Pharmaceuticals reported total revenues of $1,050,000,000 for Q2 2025, representing a 2% increase year-over-year, driven by robust growth in Xywav, which grew 13% [31][32] - The adjusted net loss for Q2 2025 was $5,000,000, primarily due to a non-tax-deductible charge from the Chimerix acquisition [33] - Operating cash flow for the first half of the year was $519,000,000, with a strong balance sheet showing $1,700,000,000 in cash and investments at quarter-end [33][34] Business Line Data and Key Metrics Changes - In the neuroscience segment, Xywav generated approximately $415,000,000 in net product sales, with a 13% year-over-year increase [15][31] - Epidiolex saw net product sales of approximately $252,000,000, reflecting a 2% increase year-over-year, impacted by U.S. inventory dynamics [17][32] - Oncology products experienced a 1% decrease in total sales, primarily due to lower sales of Rylase and Zepzelca, offset by higher sales of ZYHERA, Defitelio, and Vyxeos [32] Market Data and Key Metrics Changes - The company noted strong underlying demand for Epidiolex, with expectations to reach blockbuster status this year despite inventory dynamics affecting growth rates [77][81] - Xywav remains the only low sodium oxybate therapy and the number one branded treatment for narcolepsy, with significant patient additions in both narcolepsy and idiopathic hypersomnia [10][15] - Zepzelca's net product sales were approximately $75,000,000, an 8% decrease year-over-year, attributed to increased competition and changes in treatment protocols [21][32] Company Strategy and Development Direction - The company is focused on executing its commercial strategy and advancing key development programs, with upcoming PDUFA dates for dorvaprone and Zepzelca [39][40] - Jazz Pharmaceuticals aims to leverage its diversified portfolio and robust pipeline for sustainable long-term growth, emphasizing the importance of capital allocation and corporate development [11][34] - The recent acquisition of Chimerix is expected to enhance Jazz's presence in rare oncology, particularly with the anticipated approval of dorvaprone [8][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the diversified portfolio and the potential for future growth, particularly with the upcoming FDA approvals [8][39] - The company acknowledged near-term headwinds in the oncology portfolio but remains optimistic about returning to growth driven by new opportunities [39] - Management emphasized the importance of execution and delivering innovative therapies for patients, with a focus on patient impact and corporate responsibility [11][39] Other Important Information - The company revised its financial guidance for 2025, narrowing the revenue range while adjusting SG&A and R&D guidance to enhance operational efficiency [34][35] - Jazz Pharmaceuticals is preparing for the commercial launch of dorvaprone and Zepzelca, with significant investments in marketing and education to support these products [34][36] Q&A Session Summary Question: What is driving the strength of Xywav and idiopathic hypersomnia? - Management highlighted strong execution across field teams, effective digital campaigns, and the role of field nurse educators in supporting patient persistence and education [42][46][47] Question: What can be expected from the ZANI Phase III trial? - Management indicated that top-line updates would focus on primary and significant secondary endpoints while preserving the ability to publish detailed results later [51][52] Question: What are the competitive headwinds for Zepzelca? - Management acknowledged increased competition and changes in treatment protocols affecting Zepzelca's sales but expressed optimism about upcoming approvals that could enhance its market position [57][61] Question: What underlies confidence in Epidiolex reaching blockbuster status? - Management cited strong underlying demand and anticipated inventory dynamics that would support growth, despite some fluctuations in quarterly comparisons [76][81] Question: How will the entry of multi-source generics impact the oxybate franchise? - Management emphasized the differentiation of Xywav as the only low sodium oxybate and its established position in the market, which should mitigate potential impacts from generics [78][79]

Financial Data and Key Metrics Changes - Jazz Pharmaceuticals reported total revenues of $1,050,000,000 for the second quarter of 2025, representing a 2% increase year over year, driven by robust growth in Xywav, which grew 13% [30][31] - The adjusted net loss for the second quarter was $5,000,000, primarily due to a non-tax deductible acquired IPR&D charge from the Chimerix acquisition [32] - Operating cash flow for the first half of the year was $519,000,000, with a strong balance sheet showing $1,700,000,000 in cash and investments at quarter end [32][33] Business Line Data and Key Metrics Changes - Xywav generated approximately $415,000,000 in net product sales, with a 13% year-over-year increase, and added approximately 6,250 net patients across narcolepsy and idiopathic hypersomnia [15][10] - Epidiolex saw net product sales of approximately $252,000,000, a 2% increase year over year, impacted by U.S. inventory dynamics [17][31] - Rylase net product sales were approximately $101,000,000, a decrease of 7% year over year, while Zepzelca sales were approximately $75,000,000, down 8% year over year [19][21] Market Data and Key Metrics Changes - The oncology portfolio faced near-term headwinds, but there are expectations for growth driven by upcoming catalysts, including the PDUFA for dorvaprone and Zepzelca [11][21] - ZYHERA recognized approximately $6,000,000 in net product sales, aligning with expectations at this early stage of launch [22] Company Strategy and Development Direction - The company is focused on executing its strategy to deliver innovative therapies, with a diversified portfolio and robust pipeline positioned for sustainable long-term growth [11][12] - Upcoming FDA approvals for dorvaprone and Zepzelca are seen as significant milestones, with the potential to redefine treatment paradigms in their respective areas [11][21] - The company plans to enhance operational efficiency and prioritize spending on high-impact initiatives, including the launch of dorvaprone and support for Zepzelca and ZYHERA [33][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the diversified portfolio and the potential for future growth, particularly with the anticipated approval of dorvaprone [7][11] - The management acknowledged the competitive landscape, particularly for Zepzelca, but remains optimistic about the upcoming PDUFA dates and the potential for practice-changing data [21][59] Other Important Information - The company has revised its 2025 revenue guidance, narrowing the range and reflecting a modest reduction in the midpoint, while raising the lower end of adjusted net income and EPS guidance [33][34] - The company is committed to maintaining a disciplined approach to capital allocation, ensuring strategic investments in R&D and commercial products [36] Q&A Session Summary Question: What is driving the strength of Xywav and IH? - Management highlighted strong execution across field teams, effective digital campaigns, and the unique position of Xywav as the only FDA-approved therapy for IH as key drivers of growth [41][46] Question: Can we expect qualitative or quantitative updates for the ZANI trial? - Management indicated that they typically provide qualitative updates while preserving the ability to publish detailed results later, focusing on primary and secondary endpoints [50][52] Question: What are the competitive headwinds for Zepzelca? - Management acknowledged increased competition and the impact of immunotherapy on patient progression but expressed optimism about the upcoming PDUFA for first-line maintenance therapy [55][59] Question: What underlies confidence in Epidiolex reaching blockbuster status? - Management cited strong underlying demand and anticipated inventory dynamics as factors supporting confidence in reaching blockbuster status this year [74][76] Question: How will the entry of multi-source generics impact the oxybate franchise? - Management emphasized the differentiation of Xywav as the only low sodium oxybate and its established position in the market, suggesting limited impact from potential generic entries [78]

Financial Performance - Total revenues reached $761 million in 2Q25, a 2% year-over-year increase[93] - Neuroscience revenues accounted for 43% of the total, amounting to $335 million in 2Q25[98] - Oncology revenues totaled $274 million in 2Q25[100] - The company updated its full-year 2025 revenue guidance to a range of $415 billion to $430 billion[30, 36] - The company projects non-GAAP adjusted net income to be in the range of $300 million to $350 million, with adjusted EPS between $480 and $560[36] Product Performance - Xywav revenues were $415 million in 2Q25, representing a 13% year-over-year growth[100] - Epidiolex revenues reached $252 million in 2Q25, a 2% year-over-year increase[100] - Rylaze revenues were $101 million in 2Q25, a 7% year-over-year decrease[53] - Zepzelca revenues were $75 million in 2Q25, an 8% year-over-year decrease[59] Pipeline and Corporate Development - The company closed the Chimerix Acquisition for a total consideration of $944 million[32, 33] - The acquisition of Chimerix included an acquired IPR&D expense of $9054 million related to dordaviprone[23, 94, 113] - A PDUFA target action date of October 7, 2025, was set for Zepzelca as maintenance therapy in 1L ES-SCLC[35, 61, 62]

[Executive Summary](index=1&type=section&id=Executive%20Summary) Jazz Pharmaceuticals reported strong Q2 2025 financial performance, leadership transition, and updated 2025 financial guidance [Second Quarter 2025 Financial Performance Overview](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Performance%20Overview) Jazz Pharmaceuticals reported total revenues of $1.05 billion in Q2 2025, with Xywav revenues growing 13% year-over-year and robust net patient adds. The company also announced key regulatory milestones, including Priority Review for Zepzelca in 1L ES-SCLC - Total revenues reached **$1.05 billion** in Q2 2025[1](index=1&type=chunk) - Xywav revenues increased by **13% year-over-year**, with approximately **625 net patient adds** quarter-over-quarter[1](index=1&type=chunk) - Zepzelca was granted Priority Review by the U.S. FDA for 1L maintenance treatment of ES-SCLC[1](index=1&type=chunk)[4](index=4&type=chunk) [Leadership Transition](index=1&type=section&id=Leadership%20Transition) Renee Gala has been appointed as President and CEO, effective August 11, succeeding Bruce Cozadd, who expressed confidence in her ability to drive long-term growth - Renee Gala named President and CEO, effective August 11[1](index=1&type=chunk)[2](index=2&type=chunk) [Updated 2025 Financial Guidance](index=1&type=section&id=Updated%202025%20Financial%20Guidance) Jazz Pharmaceuticals updated its 2025 financial guidance, narrowing the total revenue range to $4.15 - $4.30 billion, representing 4% growth at the midpoint. The lower end of net (loss)/income and (loss)/earnings per share ranges were raised due to reductions in SG&A and R&D expenses and an improved effective tax rate Updated 2025 Total Revenue Guidance | Metric | Updated Guidance (August 5, 2025) | | :----- | :-------------------------------- | | Total Revenues | $4.15 - $4.30 billion | - Lower end of net (loss)/income and (loss)/earnings per share ranges raised due to reductions in SG&A and R&D and improvement in effective tax rate ranges[4](index=4&type=chunk) [Business Updates](index=1&type=section&id=Business%20Updates) The company provided updates on its commercial products, corporate development, pipeline highlights, and share repurchases [Commercial Updates](index=1&type=section&id=Commercial%20Updates) The company provided updates on its key commercial products across Neuroscience and Oncology portfolios, highlighting strong performance from Xywav and Epidiolex/Epidyolex, while Rylaze/Enrylaze and Zepzelca experienced sales decreases due to market dynamics and competition [Neuroscience Portfolio Performance](index=1&type=section&id=Neuroscience%20Portfolio%20Performance) Xywav demonstrated strong growth with a 13% increase in net product sales and significant patient additions, reinforcing its position as a leading treatment for narcolepsy and IH. Epidiolex/Epidyolex also saw a 2% sales increase and is on track to achieve blockbuster status in 2025, while Xyrem sales declined Xywav Performance (2Q25 vs 2Q24) | Metric | 2Q25 | 2Q24 | Change (YoY) | | :----- | :--- | :--- | :----------- | | Net Product Sales | $415.3 million | $368.5 million | +13% | | Active Patients (exiting 2Q25) | ~15,225 | N/A | N/A | | Net Patient Adds (2Q25) | ~625 | N/A | N/A | | IH Net Patient Adds (2Q25) | 400 | N/A | N/A | - Xywav is the only low-sodium oxybate and the **1 branded treatment** for narcolepsy and the only FDA-approved therapy for IH, described by the FDA as clinically superior to Xyrem by means of greater safety[5](index=5&type=chunk) Epidiolex/Epidyolex and Xyrem Sales (2Q25 vs 2Q24) | Product | 2Q25 Net Product Sales | 2Q24 Net Product Sales | Change (YoY) | | :------ | :--------------------- | :--------------------- | :----------- | | Epidiolex/Epidyolex | $251.7 million | $247.1 million | +2% | | Xyrem | $35.3 million | $62.2 million | -43.2% | - Company remains confident in achieving **blockbuster status for Epidiolex/Epidyolex in 2025**[7](index=7&type=chunk) [Oncology Portfolio Performance](index=2&type=section&id=Oncology%20Portfolio%20Performance) Oncology net product sales decreased by 1% in Q2 2025, primarily due to lower sales of Rylaze/Enrylaze and Zepzelca, partially offset by the launch of Ziihera. Zepzelca received U.S. FDA Priority Review for 1L ES-SCLC maintenance treatment, indicating potential for future growth Oncology Product Sales (2Q25 vs 2Q24) | Product | 2Q25 Net Product Sales | 2Q24 Net Product Sales | Change (YoY) | | :------ | :--------------------- | :--------------------- | :----------- | | Rylaze/Enrylaze | $100.7 million | $107.8 million | -7% | | Zepzelca | $74.5 million | $81.0 million | -8% | | Ziihera | $6.0 million | — | N/A (launched Dec 2024) | - Decrease in Rylaze/Enrylaze sales attributed to pediatric asparaginase use remaining below pre-protocol implementation levels[7](index=7&type=chunk) - Zepzelca sales decrease driven by increased competition in 2L SCLC and treatment protocol updates delaying progression of 1L limited-stage SCLC patients to the 2L setting[7](index=7&type=chunk) - Zepzelca and atezolizumab combination granted U.S. FDA Priority Review for 1L maintenance treatment of ES-SCLC with a PDUFA action date of **October 7, 2025**[4](index=4&type=chunk)[7](index=7&type=chunk) - Ziihera received conditional marketing authorization by the European Commission for 2L BTC[4](index=4&type=chunk)[7](index=7&type=chunk) [Corporate Development](index=3&type=section&id=Corporate%20Development) Jazz Pharmaceuticals completed the acquisition of Chimerix in April 2025, adding dordaviprone, a novel treatment for H3 K27M-mutant diffuse glioma, to its late-stage pipeline - Acquisition of Chimerix, Inc. completed in April 2025, adding dordaviprone to the late-stage pipeline[8](index=8&type=chunk) - Dordaviprone is a novel first-in-class small molecule treatment for H3 K27M-mutant diffuse glioma, a rare, high-grade brain tumor[8](index=8&type=chunk) [Key Pipeline Highlights](index=3&type=section&id=Key%20Pipeline%20Highlights) The company's pipeline is advancing with key milestones expected for zanidatamab, including top-line Phase 3 data in 1L GEA in Q4 2025 and initiation of a new Phase 2 trial in breast cancer. Dordaviprone received FDA Priority Review for accelerated approval in recurrent H3 K27M-mutant diffuse glioma, with a PDUFA date in August 2025 - Top-line PFS data from the pivotal HERIZON-GEA-01 trial for zanidatamab in 1L GEA is expected in **4Q25**[4](index=4&type=chunk)[12](index=12&type=chunk) - New data for zanidatamab in combination with chemotherapy for 1L HER2-positive metastatic GEA showed a median overall survival of **36.5 months** and **15.2 months** median progression-free survival[12](index=12&type=chunk) - Phase 2 EmpowHER-BC-208 trial initiated in August 2025 to evaluate zanidatamab in HER2-positive neoadjuvant and adjuvant breast cancer[12](index=12&type=chunk) - New Drug Application for accelerated approval of dordaviprone in recurrent H3 K27M-mutant diffuse glioma accepted and granted Priority Review by FDA, with a PDUFA action date of **August 18, 2025**[12](index=12&type=chunk) - The ongoing Phase 3 ACTION trial is evaluating dordaviprone in newly diagnosed, non-recurrent H3 K27M-mutant diffuse glioma patients, potentially extending its use into the first-line setting[12](index=12&type=chunk) [Share Repurchases](index=3&type=section&id=Share%20Repurchases) The company resumed its share repurchase program in Q2 2025, repurchasing approximately $125 million of ordinary shares. As of June 30, 2025, $225 million remained authorized under the program - Approximately **$125 million** of ordinary shares repurchased in Q2 2025[10](index=10&type=chunk) - As of June 30, 2025, **$225 million** remained outstanding under the **$500 million** share repurchase authorization[10](index=10&type=chunk) [Financial Performance (GAAP & Non-GAAP)](index=3&type=section&id=Financial%20Performance%20%28GAAP%20%26%20Non-GAAP%29) This section details Jazz Pharmaceuticals' GAAP and non-GAAP financial results, including revenues, operating expenses, and balance sheet items [Overall Financial Highlights](index=3&type=section&id=Overall%20Financial%20Highlights) Jazz Pharmaceuticals reported a GAAP net loss of $(718.5) million and a non-GAAP adjusted net loss of $(504.8) million for Q2 2025, primarily driven by a significant acquired IPR&D expense of $905.4 million related to the Chimerix acquisition. Total revenues increased by 2% year-over-year Key Financial Highlights (Three Months Ended June 30) | Metric | 2025 | 2024 | | :-------------------------------- | :----------- | :----------- | | Total revenues | $1,045,712 | $1,023,825 | | GAAP net income (loss) | $(718,470) | $168,568 | | Non-GAAP adjusted net income (loss) | $(504,849) | $360,656 | | GAAP earnings (loss) per share | $(11.74) | $2.49 | | Non-GAAP adjusted earnings (loss) per share | $(8.25) | $5.25 | - GAAP and non-GAAP adjusted net loss in 2Q25 included acquired in-process research and development (IPR&D) expense of **$905.4 million**, representing the value allocated to dordaviprone in the Chimerix Acquisition, impacting results by **$14.78 per share (GAAP)** and **$14.75 per share (non-GAAP adjusted)**[14](index=14&type=chunk) - Total revenues increased **2%** in 2Q25 compared to the same period in 2024[15](index=15&type=chunk) [Total Revenues Analysis](index=4&type=section&id=Total%20Revenues%20Analysis) Total revenues for Q2 2025 increased by 2% to $1,045.7 million. Neuroscience revenue grew by 3% driven by Xywav and Epidiolex/Epidyolex, while Oncology net product sales decreased by 1% due to lower Rylaze/Enrylaze and Zepzelca sales, partially offset by Ziihera Total Revenues (2Q25 vs 2Q24) | Category | 2Q25 (in thousands) | 2Q24 (in thousands) | Change (YoY) | | :------- | :------------------ | :------------------ | :----------- | | Product sales, net | $985,571 | $964,144 | +2.2% | | Royalties and contract revenues | $60,141 | $59,681 | +0.8% | | **Total revenues** | **$1,045,712** | **$1,023,825** | **+2.1%** | [Neuroscience Revenue](index=4&type=section&id=Neuroscience%20Revenue) Total Neuroscience revenue, including high-sodium oxybate AG royalty revenue, increased by 3% to $761.2 million in Q2 2025, primarily due to higher Xywav and Epidiolex/Epidyolex net product sales, despite a decrease in Xyrem sales Neuroscience Product Sales (2Q25 vs 2Q24) | Product | 2Q25 (in thousands) | 2Q24 (in thousands) | Change (YoY) | | :---------------------- | :------------------ | :------------------ | :----------- | | Xywav | $415,321 | $368,472 | +12.7% | | Xyrem | $35,349 | $62,180 | -43.2% | | Epidiolex/Epidyolex | $251,730 | $247,102 | +1.9% | | Sativex | $4,615 | $6,383 | -27.6% | | Total Neuroscience | $707,015 | $684,137 | +3.3% | | High-sodium oxybate AG royalty revenue | $54,138 | $54,164 | -0.05% | | **Total Neuroscience Revenue** | **$761,153** | **$738,301** | **+3.1%** | [Oncology Revenue](index=4&type=section&id=Oncology%20Revenue) Oncology net product sales decreased by 1% to $274.1 million in Q2 2025. This decline was mainly due to lower sales of Rylaze/Enrylaze and Zepzelca, partially offset by the contribution from Ziihera, which launched in December 2024 Oncology Product Sales (2Q25 vs 2Q24) | Product | 2Q25 (in thousands) | 2Q24 (in thousands) | Change (YoY) | | :---------------- | :------------------ | :------------------ | :----------- | | Rylaze/Enrylaze | $100,659 | $107,829 | -6.7% | | Zepzelca | $74,541 | $81,047 | -8.0% | | Defitelio/defibrotide | $48,106 | $45,421 | +5.9% | | Vyxeos | $44,851 | $43,012 | +4.3% | | Ziihera | $5,991 | — | N/A | | **Total Oncology** | **$274,148** | **$277,309** | **-1.1%** | [Operating Expenses and Effective Tax Rate](index=5&type=section&id=Operating%20Expenses%20and%20Effective%20Tax%20Rate) Operating expenses saw notable changes in Q2 2025. GAAP and non-GAAP cost of product sales increased due to product mix. SG&A expenses rose due to compensation-related expenses and higher headcount. R&D expenses decreased primarily from lower clinical study costs for zanidatamab and JZP385, partially offset by dordaviprone costs. Acquired IPR&D significantly increased due to the Chimerix acquisition GAAP Operating Expenses (Three Months Ended June 30) | Metric | 2025 (in thousands) | 2024 (in thousands) | % of Total Revenues (2025) | % of Total Revenues (2024) | | :-------------------------- | :------------------ | :------------------ | :------------------------- | :------------------------- | | Cost of product sales | $116,268 | $109,902 | 11.1% | 10.7% | | Gross margin | 88.2% | 88.6% | N/A | N/A | | Selling, general and administrative | $358,399 | $338,523 | 34.3% | 33.1% | | Research and development | $189,972 | $220,734 | 18.2% | 21.6% | | Acquired IPR&D | $905,362 | — | 86.6% | 0.0% | | Income tax benefit | $(17,170) | $(30,653) | N/A | N/A | | Effective tax rate | 2.3% | (22.2)% | N/A | N/A | Non-GAAP Adjusted Operating Expenses (Three Months Ended June 30) | Metric | 2025 (in thousands) | 2024 (in thousands) | % of Total Revenues (2025) | % of Total Revenues (2024) | | :-------------------------- | :------------------ | :------------------ | :------------------------- | :------------------------- | | Cost of product sales | $76,308 | $72,413 | 7.3% | 7.1% | | Gross margin | 92.3% | 92.5% | N/A | N/A | | Selling, general and administrative | $310,322 | $303,386 | 29.7% | 29.6% | | Research and development | $167,031 | $203,463 | 16.0% | 19.9% | | Acquired IPR&D | $905,362 | — | 86.6% | 0.0% | | Income tax expense | $42,290 | $22,379 | N/A | N/A | | Effective tax rate | (9.1)% | 5.8% | N/A | N/A | - R&D expenses decreased primarily due to lower clinical study costs for zanidatamab and JZP385, partially offset by costs related to dordaviprone following the Chimerix Acquisition[20](index=20&type=chunk) - Acquired IPR&D in 2Q25 represents the **$905.4 million** value allocated to dordaviprone in the Chimerix Acquisition[21](index=21&type=chunk) [Cash Flow and Balance Sheet](index=6&type=section&id=Cash%20Flow%20and%20Balance%20Sheet) As of June 30, 2025, Jazz Pharmaceuticals held $1.7 billion in cash, cash equivalents, and investments, with $5.4 billion in long-term debt. The company generated $518.6 million in cash from operations for the first six months of 2025, while the Chimerix acquisition was funded with $944.2 million in cash Cash, Investments, and Debt (As of June 30, 2025) | Metric | Amount | | :-------------------------- | :------------- | | Cash, cash equivalents and investments | $1.7 billion | | Outstanding principal balance of long-term debt | $5.4 billion | | Undrawn borrowing capacity (revolving credit facility) | $885.0 million | - Generated **$518.6 million** of cash from operations for the six months ended June 30, 2025[22](index=22&type=chunk) - The Chimerix acquisition in April 2025 for **$944.2 million** was funded with cash and cash equivalents[22](index=22&type=chunk) [2025 Financial Guidance](index=6&type=section&id=2025%20Financial%20Guidance) This section outlines Jazz Pharmaceuticals' updated 2025 financial guidance, including revenue, GAAP, and non-GAAP projections [Updated Guidance Summary](index=6&type=section&id=Updated%20Guidance%20Summary) Jazz Pharmaceuticals updated its full-year 2025 financial guidance, revising the total revenue range and adjusting various GAAP and non-GAAP metrics. The changes reflect reductions in SG&A and R&D expenses and an improved effective tax rate Updated 2025 Total Revenue Guidance | Metric | August 5, 2025 Guidance | May 6, 2025 Guidance | | :----- | :---------------------- | :------------------- | | Total Revenues | $4,150 - $4,300 million | $4,150 - $4,400 million | [GAAP Guidance](index=6&type=section&id=GAAP%20Guidance) The GAAP guidance for 2025 shows a narrowed net loss range and improved net loss per diluted share, driven by lower projected SG&A and R&D expenses and a higher effective tax rate. Acquired IPR&D is set at $905 million 2025 GAAP Financial Guidance (Updated August 5, 2025) | Metric | August 5, 2025 Guidance | | :------------------------------------------ | :---------------------- | | Gross margin % | 88% | | SG&A expenses | $1,620 - $1,693 million | | R&D expenses | $805 - $865 million | | Acquired IPR&D | $905 million | | Effective tax rate | 4% - 16% | | Net loss | $(565) - $(450) million | | Net loss per diluted share | $(9.25) - $(7.50) | | Weighted-average ordinary shares (diluted) | 61 - 62 million | [Non-GAAP Guidance](index=6&type=section&id=Non-GAAP%20Guidance) The non-GAAP adjusted guidance for 2025 projects a higher net income range and improved diluted EPS compared to previous guidance, reflecting reduced SG&A and R&D expenses and a revised effective tax rate. Acquired IPR&D remains a significant factor 2025 Non-GAAP Financial Guidance (Updated August 5, 2025) | Metric | August 5, 2025 Guidance | | :------------------------------------------ | :---------------------- | | Gross margin % | 92% | | SG&A expenses | $1,450 - $1,500 million | | R&D expenses | $730 - $780 million | | Acquired IPR&D | $905 million | | Effective tax rate | 27% - 37% | | Net income | $300 - $350 million | | Net income per diluted share | $4.80 - $5.60 | | Weighted-average ordinary shares (diluted) | 62 - 63 million | - Projected GAAP net loss and non-GAAP adjusted net income include an acquired IPR&D expense of **$905.4 million** and Xyrem antitrust litigation settlements of **$172.0 million**, impacting results by **$1.1 billion (net of tax)** or **$16.96 per share (GAAP)** and **$16.83 per share (non-GAAP adjusted)**[25](index=25&type=chunk)[27](index=27&type=chunk) [Additional Information](index=7&type=section&id=Additional%20Information) This section provides details on the conference call, company overview, non-GAAP measures, and forward-looking statements [Conference Call Details](index=7&type=section&id=Conference%20Call%20Details) Jazz Pharmaceuticals hosted an investor conference call and live audio webcast on August 5, 2025, to discuss Q2 2025 results and provide a business and financial update. Registration and webcast replay details were provided - Investor conference call and live audio webcast held on **August 5, 2025, at 4:30 p.m. EDT**[28](index=28&type=chunk) - Registration and webcast replay available via the Investors section of the Jazz Pharmaceuticals website[29](index=29&type=chunk) [About Jazz Pharmaceuticals](index=7&type=section&id=About%20Jazz%20Pharmaceuticals) Jazz Pharmaceuticals plc is a global biopharmaceutical company focused on developing life-changing medicines for serious diseases, with a diverse portfolio in sleep disorders, epilepsy, and oncology. The company emphasizes a patient-focused, science-driven approach to R&D - Jazz Pharmaceuticals is a global biopharmaceutical company dedicated to developing life-changing medicines for serious diseases[30](index=30&type=chunk) - Diverse portfolio includes marketed medicines for sleep disorders, epilepsy, and a growing portfolio of cancer treatments[30](index=30&type=chunk) - Headquartered in Dublin, Ireland, with R&D labs, manufacturing facilities, and employees worldwide[30](index=30&type=chunk) [Non-GAAP Financial Measures Explanation](index=7&type=section&id=Non-GAAP%20Financial%20Measures%20Explanation) The company uses non-GAAP adjusted financial measures to supplement GAAP results, believing they provide useful supplementary information for investors and analysts to compare performance, track guidance, and identify operating trends. These measures exclude certain items like intangible asset amortization, share-based compensation, and acquisition accounting inventory fair value step-up, and are regularly used internally for management decisions - Non-GAAP financial measures are used to supplement GAAP results, providing additional analysis for investors and analysts[31](index=31&type=chunk)[32](index=32&type=chunk) - Non-GAAP adjustments exclude items such as intangible asset amortization, share-based compensation expense, acquisition accounting inventory fair value step-up, and integration related expenses[31](index=31&type=chunk)[32](index=32&type=chunk) - Commencing with Q1 2025, the company no longer includes an adjustment for non-cash interest expense in non-GAAP measures, with 2024 periods updated for comparability[33](index=33&type=chunk) [Caution Concerning Forward-Looking Statements](index=8&type=section&id=Caution%20Concerning%20Forward-Looking%20Statements) This section highlights that the press release contains forward-looking statements regarding future financial results, pipeline advancements, regulatory activities, and commercialization strategies. These statements are based on current plans and involve significant risks and uncertainties that could cause actual results to differ materially, including market competition, regulatory approvals, clinical trial success, and integration of acquisitions - The press release contains forward-looking statements regarding growth prospects, financial results, pipeline catalysts, regulatory approvals, and commercialization strategies[34](index=34&type=chunk) - Actual results could differ materially due to significant risks and uncertainties, including maintaining sales, new product competition, regulatory approval processes, clinical trial success, and integration of acquired businesses like Chimerix[35](index=35&type=chunk)[36](index=36&type=chunk) - Risks also include global economic disruptions, geopolitical events, macroeconomic conditions, and intellectual property protection[36](index=36&type=chunk) [Condensed Consolidated Financial Statements](index=10&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents Jazz Pharmaceuticals' unaudited condensed consolidated financial statements, including income, balance sheets, and cash flows [Condensed Consolidated Statements of Income (Loss)](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20%28Loss%29) The condensed consolidated statements of income (loss) show a GAAP net loss of $(718.5) million for Q2 2025, compared to a net income of $168.6 million in Q2 2024. This shift is largely due to a substantial increase in acquired in-process research and development expenses Condensed Consolidated Statements of Income (Loss) (Unaudited, In thousands, except per share amounts) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Product sales, net | $985,571 | $964,144 | $1,824,989 | $1,806,246 | | Royalties and contract revenues | $60,141 | $59,681 | $118,564 | $119,562 | | **Total revenues** | **$1,045,712** | **$1,023,825** | **$1,943,553** | **$1,925,808** | | Cost of product sales (excluding amortization of acquired developed technologies) | $116,268 | $109,902 | $220,888 | $205,389 | | Selling, general and administrative | $358,399 | $338,523 | $872,412 | $690,235 | | Research and development | $189,972 | $220,734 | $370,624 | $443,581 | | Intangible asset amortization | $162,103 | $155,223 | $316,551 | $310,953 | | Acquired in-process research and development | $905,362 | — | $905,362 | $10,000 | | **Total operating expenses** | **$1,732,104** | **$824,382** | **$2,685,837** | **$1,660,158** | | Income (loss) from operations | $(686,392) | $199,443 | $(742,284) | $265,650 | | Interest expense, net | $(47,363) | $(62,023) | $(101,069) | $(128,139) | | Foreign exchange gain (loss) | $(1,799) | $507 | $(2,012) | $(1,186) | | Income (loss) before income tax benefit and equity in loss of investees | $(735,554) | $137,927 | $(845,365) | $136,325 | | Income tax benefit | $(17,170) | $(30,653) | $(34,982) | $(18,984) | | Equity in loss of investees | $86 | $12 | $628 | $1,359 | | **Net income (loss)** | **$(718,470)** | **$168,568** | **$(811,011)** | **$153,950** | | Net income (loss) per ordinary share: Basic | $(11.74) | $2.68 | $(13.28) | $2.45 | | Net income (loss) per ordinary share: Diluted | $(11.74) | $2.49 | $(13.28) | $2.35 | | Weighted-average ordinary shares used in per share calculations - basic | 61,194 | 62,882 | 61,087 | 62,710 | | Weighted-average ordinary shares used in per share calculations - diluted | 61,194 | 69,625 | 61,087 | 69,684 | [Condensed Consolidated Balance Sheets](index=11&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of June 30, 2025, shows a decrease in total assets to $10.94 billion from $12.01 billion at December 31, 2024, primarily driven by a reduction in cash and cash equivalents. Current liabilities significantly increased due to a higher current portion of long-term debt Condensed Consolidated Balance Sheets (Unaudited, In thousands) | Asset/Liability | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :-------------- | :---------------- | | **ASSETS** | | | | Cash and cash equivalents | $1,189,880 | $2,412,864 | | Investments | $480,000 | $580,000 | | Accounts receivable, net | $714,004 | $716,765 | | Inventories | $504,989 | $480,445 | | Total current assets | $3,350,433 | $4,629,028 | | Property, plant and equipment, net | $184,975 | $173,413 | | Intangible assets, net | $4,768,987 | $4,755,695 | | Goodwill | $1,843,974 | $1,716,323 | | **Total assets** | **$10,944,141** | **$12,012,257** | | **LIABILITIES AND SHAREHOLDERS' EQUITY** | | | | Accounts payable | $89,366 | $77,869 | | Accrued liabilities | $874,811 | $910,947 | | Current portion of long-term debt | $1,028,478 | $31,000 | | Total current liabilities | $2,071,205 | $1,038,573 | | Long-term debt, less current portion | $4,335,616 | $6,077,640 | | Total shareholders' equity | $3,706,359 | $4,093,756 | | **Total liabilities and shareholders' equity** | **$10,944,141** | **$12,012,257** | [Summary of Cash Flows](index=11&type=section&id=Summary%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash provided by operating activities was $518.6 million, a decrease from $598.6 million in the prior year. Net cash used in investing activities significantly increased to $(809.9) million, primarily due to the Chimerix acquisition, and net cash used in financing activities also rose to $(938.0) million Summary of Cash Flows (Unaudited, In thousands) | Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $518,639 | $598,581 | | Net cash used in investing activities | $(809,951) | $(528,995) | | Net cash used in financing activities | $(937,991) | $(217,637) | | Effect of exchange rates on cash and cash equivalents | $6,319 | $(2,457) | | **Net decrease in cash and cash equivalents** | **$(1,222,984)** | **$(150,508)** | [Reconciliations of GAAP to Non-GAAP Information](index=12&type=section&id=Reconciliations%20of%20GAAP%20to%20Non-GAAP%20Information) This section provides detailed reconciliations of GAAP to non-GAAP financial measures for various periods and guidance [Net Income (Loss) and EPS Reconciliation](index=12&type=section&id=Net%20Income%20%28Loss%29%20and%20EPS%20Reconciliation) This section provides a reconciliation of GAAP net income (loss) and EPS to non-GAAP adjusted figures, detailing adjustments for intangible asset amortization, share-based compensation, acquisition accounting inventory fair value step-up, integration expenses, and their income tax effects. For Q2 2025, GAAP net loss was $(718.5) million, while non-GAAP adjusted net loss was $(504.8) million Reconciliation of GAAP to Non-GAAP Adjusted Net Income (Loss) and EPS (Unaudited, In thousands, except per share amounts) | Metric | Three Months Ended June 30, 2025 (Net Loss) | Three Months Ended June 30, 2025 (LPS) | Three Months Ended June 30, 2024 (Net Income) | Three Months Ended June 30, 2024 (EPS) | | :------------------------------------ | :------------------------------------------ | :--------------------------------------- | :------------------------------------------ | :--------------------------------------- | | GAAP reported | $(718,470) | $(11.74) | $168,568 | $2.49 | | Intangible asset amortization | 162,103 | 2.65 | 155,223 | 2.23 | | Share-based compensation expense | 64,501 | 1.05 | 56,654 | 0.81 | | Acquisition accounting inventory fair value step-up | 37,109 | 0.61 | 33,243 | 0.48 | | Integration related expenses | 9,368 | 0.15 | — | — | | Income tax effect of above adjustments | (59,460) | (0.97) | (53,032) | (0.76) | | **Non-GAAP adjusted** | **$(504,849)** | **$(8.25)** | **$360,656** | **$5.25** | - Diluted EPS for 2024 periods included **6.4 million shares** related to the assumed conversion of 2026 Notes and associated interest expense add-back[45](index=45&type=chunk) - Integration related expenses in 2025 are specifically with respect to the Chimerix Acquisition[46](index=46&type=chunk) [Certain Line Items Reconciliation (Three Months)](index=13&type=section&id=Certain%20Line%20Items%20Reconciliation%20%28Three%20Months%29) This reconciliation details the adjustments made to specific GAAP operating expense line items to arrive at their non-GAAP adjusted counterparts for the three months ended June 30, 2025 and 2024. Key adjustments include intangible asset amortization, share-based compensation, and acquisition accounting inventory fair value step-up, impacting gross margin, SG&A, R&D, and the effective tax rate Reconciliation of GAAP to Non-GAAP Adjusted Certain Line Items (Three Months Ended June 30, 2025) (Unaudited, In thousands, except percentages) | Metric | GAAP Reported | Non-GAAP Adjustments | Non-GAAP Adjusted | | :-------------------------------- | :------------ | :------------------- | :---------------- | | Cost of product sales | $116,268 | $(39,960) | $76,308 | | Gross margin | 88.2% | 4.1% | 92.3% | | SG&A | $358,399 | $(48,077) | $310,322 | | R&D | $189,972 | $(22,941) | $167,031 | | Intangible asset amortization | $162,103 | $(162,103) | $0 | | Acquired IPR&D | $905,362 | $0 | $905,362 | | Interest expense, net | $47,363 | $0 | $47,363 | | Income tax expense (benefit) | $(17,170) | $59,460 | $42,290 | | Effective tax rate | 2.3% | (11.4)% | (9.1)% | Reconciliation of GAAP to Non-GAAP Adjusted Certain Line Items (Three Months Ended June 30, 2024) (Unaudited, In thousands, except percentages) | Metric | GAAP Reported | Non-GAAP Adjustments | Non-GAAP Adjusted | | :-------------------------------- | :------------ | :------------------- | :---------------- | | Cost of product sales | $109,902 | $(37,489) | $72,413 | | Gross margin | 88.6% | 3.9% | 92.5% | | SG&A | $338,523 | $(35,137) | $303,386 | | R&D | $220,734 | $(17,271) | $203,463 | | Intangible asset amortization | $155,223 | $(155,223) | $0 | | Acquired IPR&D | $0 | $0 | $0 | | Interest expense, net | $62,023 | $0 | $62,023 | | Income tax expense (benefit) | $(30,653) | $53,032 | $22,379 | | Effective tax rate | (22.2)% | 28.0% | 5.8% | [Certain Line Items Reconciliation (Six Months)](index=14&type=section&id=Certain%20Line%20Items%20Reconciliation%20%28Six%20Months%29) This section provides the reconciliation of GAAP to non-GAAP adjusted certain line items for the six months ended June 30, 2025 and 2024. Similar to the quarterly reconciliation, it details adjustments for non-cash items and their tax effects, showing the impact on cost of product sales, gross margin, SG&A, R&D, and the effective tax rate over the half-year period Reconciliation of GAAP to Non-GAAP Adjusted Certain Line Items (Six Months Ended June 30, 2025) (Unaudited, In thousands, except percentages) | Metric | GAAP Reported | Non-GAAP Adjustments | Non-GAAP Adjusted | | :-------------------------------- | :------------ | :------------------- | :---------------- | | Cost of product sales | $220,888 | $(74,889) | $145,999 | | Gross margin | 87.9% | 4.1% | 92.0% | | SG&A | $872,412 | $(89,751) | $782,661 | | R&D | $370,624 | $(43,871) | $326,753 | | Intangible asset amortization | $316,551 | $(316,551) | $0 | | Acquired IPR&D | $905,362 | $0 | $905,362 | | Interest expense, net | $101,069 | $0 | $101,069 | | Income tax expense (benefit) | $(34,982) | $113,667 | $78,685 | | Effective tax rate | 4.1% | (28.7)% | (24.6)% | Reconciliation of GAAP to Non-GAAP Adjusted Certain Line Items (Six Months Ended June 30, 2024) (Unaudited, In thousands, except percentages) | Metric | GAAP Reported | Non-GAAP Adjustments | Non-GAAP Adjusted | | :-------------------------------- | :------------ | :------------------- | :---------------- | | Cost of product sales | $205,389 | $(68,828) | $136,561 | | Gross margin | 88.6% | 3.8% | 92.4% | | SG&A | $690,235 | $(75,350) | $614,885 | | R&D | $443,581 | $(36,103) | $407,478 | | Intangible asset amortization | $310,953 | $(310,953) | $0 | | Acquired IPR&D | $10,000 | $0 | $10,000 | | Interest expense, net | $128,139 | $0 | $128,139 | | Income tax expense (benefit) | $(18,984) | $106,098 | $87,114 | | Effective tax rate | (13.9)% | 27.8% | 13.9% | [2025 Guidance Reconciliation](index=15&type=section&id=2025%20Guidance%20Reconciliation) This section reconciles the 2025 GAAP net loss and diluted LPS guidance to the non-GAAP adjusted net income and diluted EPS guidance. It outlines the projected impact of intangible asset amortization, share-based compensation, acquisition accounting inventory fair value step-up, integration expenses, and their income tax effects on the full-year outlook Reconciliation of 2025 GAAP Net Loss and Diluted LPS to Non-GAAP Adjusted Net Income and Diluted EPS Guidance (Unaudited, In millions, except per share amounts) | Metric | Net Income (Loss) | Diluted EPS/(LPS) | | :------------------------------------------ | :---------------- | :---------------- | | GAAP | $(565) - $(450) | $(9.25) - $(7.50) | | Intangible asset amortization | 610 - 660 | 9.70 - 10.60 | | Share-based compensation expense | 240 - 270 | 3.80 - 4.35 | | Acquisition accounting inventory fair value step-up | 135 - 155 | 2.15 - 2.50 | | Integration related expenses | 20 - 25 | 0.30 - 0.40 | | Income tax effect of above adjustments | (215) - (235) | (3.40) - (3.75) | | Effect of potentially dilutive ordinary shares on non-GAAP adjusted EPS | - | 0.05 - 0.20 | | **Non-GAAP adjusted** | **$300 - $350** | **$4.80 - $5.60** | | Weighted-average ordinary shares used in per share calculations - GAAP | 61 - 62 | N/A | | Weighted-average ordinary shares used in per share calculations - non-GAAP | 62 - 63 | N/A |

Jazz Pharmaceuticals (JAZZ) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on Aug ...

Company Announcement - Jazz Pharmaceuticals plc will report its 2025 second quarter financial results on August 5, 2025, after the U.S. financial markets close [1] - A live audio webcast will be hosted by company management at 4:30 p.m. EDT / 9:30 p.m. IST to discuss the financial results and provide a business update [1] Registration and Replay Information - Interested parties can register for the call in advance through the Investors section of the Jazz Pharmaceuticals website [2] - It is recommended that participants register at least 15 minutes prior to the scheduled webcast to ensure a timely connection [2] - A replay of the webcast will be available on the Investors section of the Jazz Pharmaceuticals website [2] Company Overview - Jazz Pharmaceuticals is a global biopharma company focused on innovating to transform the lives of patients with serious diseases [3] - The company has a diverse portfolio of marketed medicines, including therapies for sleep disorders, epilepsy, and a growing portfolio of cancer treatments [3] - Jazz Pharmaceuticals is headquartered in Dublin, Ireland, with research and development laboratories and manufacturing facilities in multiple countries [3]

Core Viewpoint - Jazz Pharmaceuticals has announced the appointment of Renee Gala as the new President and CEO, effective August 11, 2025, succeeding co-founder Bruce Cozadd, who will remain as Chairperson of the Board [1][3]. Company Leadership Transition - The Board of Directors conducted a thorough search for the new CEO, focusing on both internal and external candidates, ultimately selecting Renee Gala due to her exceptional leadership qualities and experience [3]. - Bruce Cozadd, who has been with the company for 22 years, expressed pride in the company's journey and confidence in Gala's ability to lead Jazz into its next growth phase [3][4]. Renee Gala's Background - Renee Gala has over 30 years of experience in finance, strategy, corporate development, and commercialization, having served as CFO and COO at Jazz Pharmaceuticals since 2020 and 2023, respectively [2][4]. - Prior to joining Jazz, Gala held leadership roles at GRAIL Inc. and Theravance Biopharma, showcasing a strong background in the life sciences sector [4][5]. Company Strategy and Vision - Gala emphasized the company's commitment to transforming patient lives through innovative medicines and highlighted the potential for growth within Jazz's market-leading portfolio and promising pipeline [3][6]. - The company aims to continue its focus on corporate development and external innovation to drive value for patients and shareholders [3][6].

Core Insights - Jazz Pharmaceuticals is currently trading at approximately $110, down 11% year-to-date, despite receiving conditional European Commission Marketing Authorization for Ziihera, the first HER2-targeted therapy for advanced HER2-Positive Biliary Tract Cancer, with expected peak annual sales exceeding $2 billion [2] - The stock's decline is attributed to a downward revision of the 2025 earnings forecast from $22.50-$24 to $4-$5.60, impacted by $1.1 billion in one-time IPR&D charges related to the $935 million Chimerix acquisition and litigation costs [2] - Despite these challenges, Jazz Pharmaceuticals is considered undervalued, presenting an attractive buying opportunity for investors with a 3-5 year outlook [2] Revenue and Financial Performance - Over the past three years, Jazz Pharmaceuticals' revenue has grown at a rate of 7.3%, outperforming the S&P 500's growth rate of 5.5% [4] - The company has a high operating cash flow (OCF) margin of 38.3%, totaling $1.6 billion over the past twelve months, significantly higher than the S&P 500's 14.9% [4] - The reported net income margin stands at 11.9% ($482 million), but an adjusted net margin of 32.6% reflects a stronger underlying performance [4] Valuation Metrics - At a stock price of $110, Jazz Pharmaceuticals trades at a trailing adjusted P/E of 5.5 times its earnings of $20.19 per share, well below its four-year average P/E ratio of 8.1x [4] - Analysts have a typical price forecast of $188 for the stock, indicating a substantial upside potential of 70% [4] Debt and Market Sensitivity - The company has a significant debt level of $5.4 billion against a market capitalization of $6.7 billion, resulting in a Debt-to-Equity Ratio of 81.6%, which is considerably higher than the S&P 500 average of 19.4% [4] - Historically, Jazz Pharmaceuticals has underperformed the S&P 500 during market downturns, with notable declines of 38.7% in 2022 and 42.6% in 2020 compared to the S&P 500's declines of 25.4% and 33.9%, respectively [5] Future Outlook - Future earnings are expected to rebound in 2026 to $21.56, despite the anticipated impact of one-off costs in 2025 [4] - The Chimerix acquisition introduces dordaviprone to the oncology portfolio, with a peak annual sales potential exceeding $500 million [4] - Overall, despite recent earnings revisions and debt concerns, Jazz Pharmaceuticals presents a compelling value proposition with strong fundamentals and significant future sales potential from Ziihera and dordaviprone [6]

Group 1 - Jazz Pharmaceuticals plc's stock price has fluctuated between $97 and $120 over the past three months [1] - The company has made significant progress in developing its oncology franchise [1]