Core Viewpoint - Jazz Pharmaceuticals reported disappointing first-quarter 2025 earnings, significantly missing consensus estimates due to increased operating expenses and a decline in revenues, leading to a drop in share price [1][2][4]. Financial Performance - Adjusted earnings for Q1 2025 were $1.68 per share, missing the Zacks Consensus Estimate of $4.51, representing a 36% year-over-year decline [1]. - Total revenues decreased by 0.5% year over year to $897.8 million, also falling short of the Zacks Consensus Estimate of $981 million [2]. - Net product sales remained flat at $839.4 million, missing both the Zacks Consensus Estimate and internal estimates [4]. Segment Performance - Neuroscience segment sales increased by 4% to $605.2 million, with combined oxybate sales (Xyrem + Xywav) rising about 1% to $382 million, but still missing estimates [6][7]. - Sales of Xyrem plummeted 42% year over year to $37.2 million due to patient transitions to Xywav and the introduction of authorized generics [6]. - Xywav sales reached $344.8 million, up 9% year over year, driven by strong uptake in narcolepsy and idiopathic hypersomnia indications [7]. - Oncology segment sales fell by 11% to $229.4 million, with specific drugs like Rylaze and Zepzelca experiencing significant declines due to competitive pressures and protocol updates [9][10][11]. Operating Costs - Adjusted selling, general and administrative expenses surged by 52% year over year to $472.3 million, primarily due to antitrust litigation settlements [13]. - Adjusted research and development expenses decreased by 22% to $220.9 million, attributed to lower clinical program costs [13]. Guidance and Outlook - Jazz Pharmaceuticals maintained its total sales guidance for 2025, projecting revenues between $4.15 billion and $4.40 billion, indicating a 5% year-over-year growth at the midpoint [15]. - Adjusted SG&A expenses are now expected to be between $1.47 billion and $1.53 billion, while adjusted R&D expenses are forecasted to be between $760 million and $810 million [16]. - The company revised its adjusted earnings guidance down to a range of $4.00 to $5.60 per share, significantly lower than previous estimates [16].

or ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2025 For the transition period from to Commission File Number: 001-33500 JAZZ PHARMACEUTICALS PUBLIC LIMITED COMPANY (Exact name of registrant as specified in its charter) (State or other jurisd ...

Core Insights - Jazz Pharmaceuticals reported revenue of $897.84 million for Q1 2025, a year-over-year decline of 0.5% and an EPS of $1.68, down from $2.68 a year ago, indicating significant underperformance against analyst expectations [1] - The revenue fell short of the Zacks Consensus Estimate of $981.41 million by 8.52%, while the EPS was 62.75% below the consensus estimate of $4.51 [1] Revenue Breakdown - Royalties and contract revenues were $58.42 million, slightly above the estimated $56.30 million [4] - Product sales, net, were $839.42 million, compared to the average estimate of $925.39 million, reflecting a year-over-year change of -0.3% [4] - Total revenues from Neuroscience for Oxybate (Xywav) were $344.80 million, below the estimate of $377.35 million, with a year-over-year increase of 9.4% [4] - Revenues from Epidiolex/Epidyolex totaled $217.74 million, compared to the estimate of $233.21 million, marking a 9.6% increase year-over-year [4] - Sativex revenues were $5.41 million, exceeding the estimate of $3.79 million, with a significant year-over-year increase of 97.7% [4] - Total Neuroscience revenues were $605.19 million, below the estimate of $652.54 million, with a year-over-year increase of 4.2% [4] - Total Oncology revenues were $229.45 million, below the estimate of $269.04 million, reflecting a year-over-year decline of 10.9% [4] - Rylaze revenues were $94.23 million, below the estimate of $104.20 million, with an 8.3% decline year-over-year [4] - Revenues from Defitelio/defibrotide were $40.66 million, below the estimate of $47.89 million, representing a 14.7% year-over-year decline [4] - Vyxeos revenues were $29.54 million, below the estimate of $34.56 million, with a year-over-year decline of 7.7% [4] - Zepzelca revenues were $63.03 million, below the estimate of $80.75 million, reflecting a year-over-year decline of 16.1% [4] Stock Performance - Jazz Pharmaceuticals' shares returned +10.5% over the past month, compared to the Zacks S&P 500 composite's +11.5% change, indicating a performance in line with the broader market [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the market in the near term [3]

Jazz, which belongs to the Zacks Medical - Biomedical and Genetics industry, posted revenues of $897.84 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 8.52%. This compares to year-ago revenues of $901.98 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commen ...

Financial Data and Key Metrics Changes - Jazz Pharmaceuticals reported total revenues of $898 million for Q1 2025, reflecting a solid commercial performance despite some headwinds in oncology products [6][26][27] - Revenues from the neuroscience portfolio, particularly Xywav and Epidiolex, grew by 9% and 10% year over year, respectively [6][12][14] - Oncology product sales decreased by 8% year over year, primarily due to changes in pediatric treatment protocols and one fewer shipping week compared to the previous year [15][27] Business Line Data and Key Metrics Changes - The sleep therapeutic area generated approximately $431 million in total revenue, with Xywav net product sales at approximately $345 million, marking a 9% increase year over year [10] - Epidiolex had net product sales of approximately $218 million, a 10% increase year over year, driven by underlying demand and favorable U.S. payer mix [12][14] - Oncology net product sales were approximately $94 million, down 8% year over year, with expectations for normalization in the coming quarters [15][27] Market Data and Key Metrics Changes - Xywav remains the number one branded treatment for narcolepsy, with approximately 14,600 active patients, reflecting a robust quarter of patient additions [10] - The idiopathic hypersomnia market is showing significant growth, with a 39% increase in patient adds over the last twelve months [84] - The company anticipates three potential regulatory approvals in oncology in the coming months, which could drive future growth [7][8] Company Strategy and Development Direction - The acquisition of Chimerix is expected to enhance Jazz's presence in rare oncology and provide a near-term commercial opportunity with doravaprone [6][24] - The company is focused on advancing its R&D pipeline, with key trials and data presentations expected at ASCO in June [8][19] - Jazz Pharmaceuticals aims to maintain financial flexibility and operational excellence while navigating potential tariff impacts [9][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the top-line revenue guidance for 2025, affirming a range of $4.15 billion to $4.4 billion, representing 5% year-over-year growth at the midpoint [33] - The company remains optimistic about the growth potential of Epidiolex and Xywav, with expectations for Epidiolex to reach blockbuster status in 2025 [14][34] - Management highlighted the importance of corporate development as a key strategy for long-term shareholder value [62] Other Important Information - The company updated its financial guidance to reflect the Chimerix acquisition and litigation settlement charges, impacting adjusted net income and earnings per share [28][33] - Jazz Pharmaceuticals has sufficient inventory in the U.S. to meet its 2025 needs, mitigating potential tariff impacts [30][29] Q&A Session Summary Question: Can you discuss the supply chain for Xywav and its U.S. manufacturing capabilities? - Management confirmed that they have a U.S. supplier for oxybate, including Xywav, with sufficient capacity to meet U.S. needs [42] Question: What is Jazz's manufacturing footprint and potential mitigation strategies for tariffs? - The company has manufacturing facilities in the U.S. and Europe, providing flexibility in sourcing and production [46] Question: How does the Chimerix acquisition fit into Jazz's strategy? - The acquisition aligns with Jazz's focus on addressing unmet medical needs in oncology and provides a near-term commercial opportunity [62] Question: What are the expectations for Zepzelca's growth trajectory amid competition? - Management anticipates that the first-line contribution will outweigh pressure from competitors, with upcoming data expected to be practice-changing [51][54] Question: What is the status of the doravaprone trial and its potential impact? - The FDA review is proceeding as expected, with no surprises, and the company is evaluating potential changes to the trial analysis plan [80]

Financial Data and Key Metrics Changes - The company reported total revenues of $898 million for Q1 2025, with a year-over-year growth of 9% for Xywav and 10% for Epidiolex [8][29][30] - Adjusted net income was impacted by a $172 million charge related to Xyrem antitrust litigation settlements, reducing GAAP and non-GAAP EPS by $2.38 and $2.34 respectively [31][36] - The company affirmed its total revenue guidance for 2025, maintaining a range of $4.15 billion to $4.4 billion, representing a 5% year-over-year growth at the midpoint [36][38] Business Line Data and Key Metrics Changes - The neuroscience portfolio, led by Xywav, generated approximately $431 million in total revenue, with Xywav net product sales at $345 million, a 9% increase year-over-year [12][8] - Epidiolex had net product sales of approximately $218 million, reflecting a 10% increase year-over-year, driven by underlying demand and favorable U.S. payer mix [15][17] - Oncology product sales were approximately $94 million, a decrease of 8% year-over-year, primarily due to changes in pediatric treatment protocols affecting Rylase sales [18][30] Market Data and Key Metrics Changes - The company reported approximately 14,600 active Xywav patients, with a net increase of 450 patients compared to Q4 2024, indicating strong market penetration [14] - The idiopathic hypersomnia market saw a 39% increase in patient adds over the last twelve months, reflecting successful disease education campaigns [90] Company Strategy and Development Direction - The company is focused on expanding its oncology portfolio, with a supplemental new drug application submitted for Zepzelca to include first-line maintenance therapy in extensive-stage small cell lung cancer [9][21] - The acquisition of Chimerix is expected to enhance the company's presence in rare oncology and provide a near-term commercial opportunity with doravaprone [10][25] - The company aims to maintain financial flexibility and operational excellence while navigating potential tariff impacts [11][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the top-line revenue guidance and highlighted the potential for growth in the oncology portfolio with upcoming regulatory approvals [11][36] - The company remains optimistic about the blockbuster potential of Epidiolex and the growth trajectory of Xywav, despite near-term headwinds in oncology [9][17] Other Important Information - The company is advancing its R&D pipeline, with key trials expected to read out in the second half of 2025, including the Horizon GEA-one Phase III trial [10][22] - The company has sufficient inventory to meet its 2025 needs, mitigating potential impacts from tariffs [33][34] Q&A Session Summary Question: Supply chain and Xywav production capabilities - The company confirmed it has a U.S. supplier for Xywav with sufficient capacity to meet U.S. needs, which could mitigate tariff exposure [46][47] Question: Manufacturing footprint and potential tariff impacts - The company has multiple manufacturing locations, including a U.S. CMO and facilities in Ireland and the UK, providing flexibility in response to potential tariffs [51][52] Question: Zepzelca's growth trajectory amidst competition - Management expects Zepzelca to return to growth, driven by upcoming data presentations and potential inclusion in treatment guidelines [59][60] Question: Chimerix acquisition rationale - The acquisition aligns with the company's strategy to address unmet medical needs in oncology and is expected to provide a near-term commercial opportunity [69][70] Question: Rylase growth in the adolescent and young adult market - Management indicated that education efforts are ongoing, and they expect normalization of Rylase revenues in the second quarter of 2025 [74][75]

Financial Performance & Guidance - Total revenues are projected to be between $4.15 billion and $4.40 billion, representing approximately 5% growth at the guidance midpoint[26] - The company anticipates Non-GAAP Adjusted Net Income (ANI) to be in the range of $250 million to $350 million[27] - Adjusted EPS is expected to be between $4.00 and $5.60[27] - The company had a strong operating cash flow of $430 million in 1Q25 and cash reserves of $2.6 billion at the end of 1Q25[27] - 1Q25 Non-GAAP ANI decreased 41% YoY to $105 million, and EPS decreased 36% YoY to $1.68, impacted by Xyrem antitrust litigation settlements[92] Product Performance - Xywav revenues grew 9% YoY in 1Q25, with Xywav remaining the 1 branded treatment for narcolepsy and the only therapy approved to treat Idiopathic Hypersomnia (IH)[24] - Epidiolex revenues increased 10% YoY in 1Q25 and is poised to reach blockbuster status in 2025[24, 40, 43] - Oncology revenues declined 11% YoY in 1Q25, impacted by SCLC competition for Zepzelca and COG protocol changes impacting Rylaze[24] - Total sleep therapeutic area revenue was $431 million in 1Q25[34] Pipeline Development - Zanidatamab is considered a near-term opportunity with a potential market opportunity exceeding $2 billion[5, 74] - Dordaviprone has a PDUFA action date of August 18, 2025, representing a near-term commercial opportunity[22, 87, 118]

[Executive Summary](index=1&type=section&id=Executive%20Summary) Jazz Pharmaceuticals reported strong Q1 2025 revenues, affirmed full-year guidance, and advanced its pipeline with key acquisitions and regulatory submissions [First Quarter 2025 Performance Overview](index=1&type=section&id=First%20Quarter%202025%20Performance%20Overview) Jazz Pharmaceuticals reported total revenues of $898 million in Q1 2025, driven by strong performance from Xywav and Epidiolex, while affirming 2025 total revenue guidance and updating financial guidance to reflect recent acquisitions and litigation settlements - Total revenues reached **$898 million** in 1Q25, with Xywav and Epidiolex showing strong performance[1](index=1&type=chunk)[2](index=2&type=chunk) - Affirmed 2025 total revenue guidance range of **$4.15 - $4.40 billion**, reflecting confidence in commercial portfolio growth[2](index=2&type=chunk)[4](index=4&type=chunk) - Completed the acquisition of Chimerix, adding dordaviprone to the late-stage pipeline, and submitted an sNDA for Zepzelca in 1L ES-SCLC[1](index=1&type=chunk)[2](index=2&type=chunk) [Business Updates](index=1&type=section&id=Business%20Updates) The company experienced varied commercial performance across key products, completed a strategic acquisition, and advanced its late-stage pipeline with significant regulatory and clinical milestones [Commercial Updates](index=1&type=section&id=Commercial%20Updates) Commercial performance in Q1 2025 saw varied results across key products, with Xywav and Epidiolex/Epidyolex demonstrating strong growth, while other products experienced declines due to market competition or protocol updates Key Product Net Sales (1Q25 vs 1Q24) | Product | 1Q25 Net Sales ($M) | 1Q24 Net Sales ($M) | YoY Change | Key Driver/Impact | |---|---|---|---|---| | Xywav | 344.8 | 315.3 | +9% | Meaningful patient adds | | Xyrem | 37.2 | 64.2 | -42% | | | Epidiolex/Epidyolex | 217.7 | 198.7 | +10% | Confident in blockbuster status for 2025 | | Rylaze/Enrylaze | 94.2 | 102.7 | -8% | Headwinds from COG pediatric treatment protocol updates | | Zepzelca | 63.0 | 75.1 | -16% | Increased competition in 2L SCLC, treatment protocol updates | | Ziihera | 2.0 | — | N/A | Product launch in December 2024 | - Xywav added approximately **450 net patients** in 1Q25, reaching about **14,600 active patients**, and remains the 1 branded treatment for narcolepsy and the only FDA-approved therapy for IH[4](index=4&type=chunk)[6](index=6&type=chunk) - A supplemental New Drug Application (sNDA) for Zepzelca in combination with atezolizumab for maintenance therapy in 1L ES-SCLC was submitted, with potentially practice-changing data to be presented at ASCO 2025[4](index=4&type=chunk)[6](index=6&type=chunk) [Corporate Development](index=3&type=section&id=Corporate%20Development) Jazz Pharmaceuticals completed the acquisition of Chimerix in April 2025, integrating dordaviprone, a novel treatment for H3 K27M-mutant diffuse glioma, into its late-stage pipeline, addressing a significant unmet medical need - Acquisition of Chimerix completed in **April 2025**, adding dordaviprone to the late-stage pipeline[2](index=2&type=chunk)[4](index=4&type=chunk)[7](index=7&type=chunk) - Dordaviprone is a novel first-in-class small molecule treatment for H3 K27M-mutant diffuse glioma, a rare, high-grade brain tumor[7](index=7&type=chunk) [Key Pipeline Highlights](index=3&type=section&id=Key%20Pipeline%20Highlights) The company made significant progress across its pipeline, with key updates for zanidatamab and dordaviprone, including pivotal trial readouts, FDA Priority Review, and ongoing Phase 3 evaluations - Top-line PFS data from the pivotal HERIZON-GEA-01 trial for zanidatamab in 1L gastroesophageal adenocarcinoma (GEA) is expected in **2H25**[2](index=2&type=chunk)[4](index=4&type=chunk)[12](index=12&type=chunk) - A New Drug Application (NDA) for accelerated approval of dordaviprone in recurrent H3 K27M-mutant diffuse glioma was accepted by FDA and granted Priority Review, with a PDUFA action date of **August 18, 2025**[4](index=4&type=chunk)[12](index=12&type=chunk) - The 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) [Financial Results (Q1 2025)](index=3&type=section&id=Financial%20Results%20(Q1%202025)) Q1 2025 financial results show a GAAP net loss primarily due to Xyrem litigation settlements, stable total revenues, and increased operating expenses, while non-GAAP net income decreased [Financial Highlights](index=3&type=section&id=Financial%20Highlights) In Q1 2025, Jazz Pharmaceuticals reported a GAAP net loss of $(92.5) million, a significant increase from Q1 2024, primarily due to a $172.0 million expense related to Xyrem antitrust litigation settlements, while non-GAAP adjusted net income also decreased Q1 2025 Financial Highlights (GAAP & Non-GAAP) | Metric | 1Q25 (GAAP) | 1Q24 (GAAP) | 1Q25 (Non-GAAP) | 1Q24 (Non-GAAP) | |---|---|---|---|---| | Total revenues (in thousands) | $897,841 | $901,983 | N/A | N/A | | Net income (loss) (in thousands) | $(92,541) | $(14,618) | $105,233 | $178,430 | | EPS (LPS) | $(1.52) | $(0.23) | $1.68 | $2.63 | - GAAP net loss for 1Q25 was **$(92.5) million**, compared to **$(14.6) million** for 1Q24, primarily impacted by a **$172.0 million** expense from Xyrem antitrust litigation settlements[11](index=11&type=chunk)[13](index=13&type=chunk) - Non-GAAP adjusted net income for 1Q25 decreased to **$105.2 million** from **$178.4 million** in 1Q24[11](index=11&type=chunk) [Total Revenues Breakdown](index=4&type=section&id=Total%20Revenues%20Breakdown) Total revenues for Q1 2025 were $897.8 million, largely in line with Q1 2024, with Neuroscience revenue increasing due to Xywav and Epidiolex/Epidyolex sales, while Oncology net product sales decreased Total Revenues by Segment (1Q25 vs 1Q24) | Segment | 1Q25 ($M) | 1Q24 ($M) | YoY Change | |---|---|---|---| | Total Neuroscience (incl. royalties) | 654.1 | 630.9 | +4% | | Total Oncology | 229.4 | 257.5 | -11% | | Other | 4.8 | 3.6 | +33.3% | | **Total Revenues** | **897.8** | **902.0** | **-0.5%** | - Neuroscience revenue increase was driven by higher Xywav and Epidiolex/Epidyolex net product sales, partially offset by decreased Xyrem net product sales[15](index=15&type=chunk) - Oncology net product sales decrease was primarily due to lower sales of Zepzelca, Rylaze/Enrylaze, and Defitelio/defibrotide, with Rylaze impacted by COG pediatric treatment protocol updates[16](index=16&type=chunk) [Operating Expenses and Effective Tax Rate](index=5&type=section&id=Operating%20Expenses%20and%20Effective%20Tax%20Rate) Operating expenses in Q1 2025 increased due to product mix changes, higher inventory provisions, and Xyrem antitrust litigation settlements, while R&D expenses decreased, and the GAAP effective tax rate was significantly influenced by the Xyrem settlements Operating Expenses (GAAP) (1Q25 vs 1Q24) | Expense Category | 1Q25 ($M) | 1Q24 ($M) | YoY Change | |---|---|---|---| | Cost of product sales | 104.6 | 95.5 | +9.5% | | Selling, general and administrative | 514.0 | 351.7 | +46.1% | | Research and development | 180.7 | 222.8 | -18.9% | | Acquired in-process R&D | — | 10.0 | -100% | | Income tax (benefit) expense | (17.8) | 11.7 | N/A | | Effective tax rate | 16.2% | (728.4)% | N/A | - SG&A expenses increased significantly due to **$172.0 million** in Xyrem antitrust litigation settlements[19](index=19&type=chunk) - R&D expenses decreased primarily due to lower clinical study costs for zanidatamab and the discontinuation of JZP385 and JZP150 programs[19](index=19&type=chunk) [Cash Flow and Balance Sheet](index=6&type=section&id=Cash%20Flow%20and%20Balance%20Sheet) Jazz Pharmaceuticals maintained strong liquidity with $2.6 billion in cash, generated $429.8 million from operations, and reduced long-term debt through a $750 million prepayment Key Financial Position & Cash Flow (as of March 31, 2025) | Metric | Amount ($B) | |---|---| | Cash, cash equivalents and investments | 2.6 | | Outstanding principal balance of long-term debt | 5.4 | | Undrawn revolving credit facility | 0.885 | | Cash from operations (1Q25) | 0.430 | - Generated **$429.8 million** of cash from operations in 1Q25, reflecting strong business performance[20](index=20&type=chunk) - Made a voluntary prepayment of **$750.0 million** principal amount on the Term Loan B in January 2025[20](index=20&type=chunk) [2025 Financial Guidance](index=6&type=section&id=2025%20Financial%20Guidance) Jazz Pharmaceuticals updated its 2025 financial guidance to reflect the Chimerix acquisition and Xyrem litigation settlements, affirming revenue but significantly revising net income and EPS projections downwards [Overall Guidance Update](index=6&type=section&id=Overall%20Guidance%20Update) Jazz Pharmaceuticals updated its full-year 2025 financial guidance primarily to incorporate the impact of the Chimerix acquisition and certain Xyrem antitrust litigation settlements, resulting in affirmed total revenue guidance but significantly revised GAAP and Non-GAAP net income and EPS projections - Updated 2025 financial guidance to reflect the Chimerix acquisition and Xyrem antitrust litigation settlements[21](index=21&type=chunk) - Total revenue guidance for 2025 remains affirmed at **$4.15 - $4.40 billion**[22](index=22&type=chunk) - The acquired IPR&D expense from the Chimerix acquisition (**$885.0 million** at midpoint) and Xyrem antitrust litigation settlements (**$172.0 million**) are expected to impact GAAP and non-GAAP projected results by **$1.0 billion**[25](index=25&type=chunk)[27](index=27&type=chunk) [GAAP Guidance](index=6&type=section&id=GAAP%20Guidance) The updated GAAP guidance for 2025 projects a net loss of $(615) - $(450) million, a significant change from previous net income projections, primarily driven by acquired IPR&D expense from the Chimerix acquisition and Xyrem antitrust litigation settlements 2025 GAAP Financial Guidance Comparison | Metric | May 6, 2025 Guidance | February 25, 2025 Guidance | |---|---|---| | SG&A expenses ($M) | $1,640 - $1,723 | $1,404 - $1,483 | | R&D expenses ($M) | $835 - $895 | $792 - $851 | | Acquired in-process R&D ($M) | $870 - $900 | - | | Net income (loss) ($M) | $(615) - $(450) | $560 - $720 | | Net income (loss) per diluted share | $(10.00) - $(7.50) | $9.15 - $11.50 | - The projected GAAP net loss includes an acquired IPR&D expense of **$885.0 million** (midpoint) relating to the Chimerix acquisition and **$172.0 million** for Xyrem antitrust litigation settlements[25](index=25&type=chunk) [Non-GAAP Guidance](index=7&type=section&id=Non-GAAP%20Guidance) The updated Non-GAAP guidance for 2025 shows a substantial reduction in projected net income to $250 - $350 million, primarily due to the inclusion of acquired IPR&D expense and Xyrem antitrust litigation settlements, which also significantly impacted the non-GAAP effective tax rate 2025 Non-GAAP Financial Guidance Comparison | Metric | May 6, 2025 Guidance | February 25, 2025 Guidance | |---|---|---| | SG&A expenses ($M) | $1,470 - $1,530 | $1,250 - $1,310 | | R&D expenses ($M) | $760 - $810 | $720 - $770 | | Acquired in-process R&D ($M) | $870 - $900 | - | | Effective tax rate | 35% - 45% | 13% - 15% | | Net income ($M) | $250 - $350 | $1,400 - $1,500 | | Net income per diluted share | $4.00 - $5.60 | $22.50 - $24.00 | - The non-GAAP adjusted net income guidance includes the acquired IPR&D expense from the Chimerix acquisition and Xyrem antitrust litigation settlements, leading to a significant downward revision[25](index=25&type=chunk)[27](index=27&type=chunk) - The non-GAAP effective tax rate is projected to be **35% - 45%**, a substantial increase from the previous guidance of **13% - 15%**[24](index=24&type=chunk)[31](index=31&type=chunk) [Additional Information](index=7&type=section&id=Additional%20Information) This section provides details on the Q1 2025 conference call, an overview of Jazz Pharmaceuticals, explanations of non-GAAP financial measures, and cautions regarding 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 May 6, 2025, at 4:30 p.m. ET to discuss Q1 2025 results and provide a business and financial update, with a replay available online - Conference call and live audio webcast held on **May 6, 2025**, at **4:30 p.m. ET** to discuss Q1 2025 results[28](index=28&type=chunk) - A replay of the webcast is available via the Investors section of the Jazz Pharmaceuticals website[30](index=30&type=chunk) [About Jazz Pharmaceuticals](index=8&type=section&id=About%20Jazz%20Pharmaceuticals) Jazz Pharmaceuticals plc is a global biopharmaceutical company focused on developing life-changing medicines for serious diseases, particularly in sleep disorders, epilepsy, and oncology, with 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[32](index=32&type=chunk) - The company has a diverse portfolio of marketed medicines, including leading therapies for sleep disorders, epilepsy, and a growing portfolio of cancer treatments[32](index=32&type=chunk) - Headquartered in Dublin, Ireland, with R&D labs, manufacturing facilities, and employees worldwide[32](index=32&type=chunk) [Non-GAAP Financial Measures](index=8&type=section&id=Non-GAAP%20Financial%20Measures) Jazz Pharmaceuticals uses non-GAAP adjusted financial measures to supplement GAAP results, excluding items like intangible asset amortization and share-based compensation, to provide useful supplementary information for investors and analysts, with an updated adjustment policy for Q1 2025 - Non-GAAP measures are used to supplement GAAP results, providing useful supplementary information for investors and analysts[33](index=33&type=chunk)[34](index=34&type=chunk) - Non-GAAP adjustments exclude items such as intangible asset amortization, share-based compensation expense, and acquisition accounting inventory fair value step-up[33](index=33&type=chunk)[48](index=48&type=chunk)[50](index=50&type=chunk) - Commencing with **Q1 2025**, the company no longer includes an adjustment for non-cash interest expense in its non-GAAP adjusted financial measures[34](index=34&type=chunk) [Caution Concerning Forward-Looking Statements](index=9&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, which are subject to significant risks and uncertainties that could cause actual results to differ materially - The press release contains forward-looking statements related to 2025 financial guidance, pipeline advancements, regulatory activities, and commercialization strategies[36](index=36&type=chunk) - These statements are subject to significant risks and uncertainties, including maintaining sales, new product competition, regulatory approval processes, clinical trial success, and macroeconomic conditions[36](index=36&type=chunk)[37](index=37&type=chunk) - Actual results and timing of events could differ materially from those anticipated due to these risks, as detailed in SEC filings[37](index=37&type=chunk)[38](index=38&type=chunk) [Condensed Consolidated Financial Statements](index=11&type=section&id=Condensed%20Consolidated%20Financial%20Statements) The condensed financial statements detail Q1 2025 performance, showing a net loss, changes in assets and liabilities, and cash flow activities, with reconciliations to non-GAAP measures [Condensed Consolidated Statements of Loss](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Loss) The condensed consolidated statements of loss show a net loss of $(92.5) million for Q1 2025, compared to $(14.6) million for Q1 2024, with stable total revenues but significantly increased operating expenses Condensed Consolidated Statements of Loss (1Q25 vs 1Q24) | Metric (in thousands) | 1Q25 | 1Q24 | |---|---|---| | Total revenues | $897,841 | $901,983 | | Total operating expenses | $953,733 | $835,776 | | Income (loss) from operations | $(55,892) | $66,207 | | Net loss | $(92,541) | $(14,618) | | Net loss per ordinary share (basic and diluted) | $(1.52) | $(0.23) | - Selling, general and administrative expenses increased from **$351.7 million** in 1Q24 to **$514.0 million** in 1Q25[41](index=41&type=chunk) - Research and development expenses decreased from **$222.8 million** in 1Q24 to **$180.7 million** in 1Q25[41](index=41&type=chunk) [Condensed Consolidated Balance Sheets](index=12&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets decreased to $11.5 billion from $12.0 billion at December 31, 2024, primarily due to a decrease in cash and cash equivalents, while total liabilities also decreased, driven by a reduction in long-term debt Condensed Consolidated Balance Sheets (March 31, 2025 vs December 31, 2024) | Metric (in thousands) | March 31, 2025 | December 31, 2024 | |---|---|---| | Cash and cash equivalents | $1,861,946 | $2,412,864 | | Total current assets | $4,127,817 | $4,629,028 | | Total assets | $11,534,682 | $12,012,257 | | Total current liabilities | $1,222,610 | $1,038,573 | | Long-term debt, less current portion | $5,336,481 | $6,077,640 | | Total shareholders' equity | $4,174,891 | $4,093,756 | - Cash and cash equivalents decreased by over **$550 million** from December 31, 2024, to March 31, 2025[44](index=44&type=chunk) - Long-term debt, less current portion, decreased by approximately **$741 million**[44](index=44&type=chunk) [Summary of Cash Flows](index=12&type=section&id=Summary%20of%20Cash%20Flows) For Q1 2025, net cash provided by operating activities significantly increased to $429.8 million, but net cash used in financing activities also increased substantially due to debt prepayments, resulting in a net decrease in cash and cash equivalents Summary of Cash Flows (1Q25 vs 1Q24) | Cash Flow Activity (in thousands) | 1Q25 | 1Q24 | |---|---|---| | Net cash provided by operating activities | $429,784 | $267,229 | | Net cash used in investing activities | $(168,931) | $(271,904) | | Net cash used in financing activities | $(813,466) | $(56,552) | | Net decrease in cash and cash equivalents | $(550,918) | $(62,925) | - Net cash provided by operating activities increased by over **60%** year-over-year[46](index=46&type=chunk) - Net cash used in financing activities increased significantly, indicating substantial outflows, likely for debt reduction[46](index=46&type=chunk) [Reconciliations of GAAP Reported to Non-GAAP Adjusted Information](index=13&type=section&id=Reconciliations%20of%20GAAP%20Reported%20to%20Non-GAAP%20Adjusted%20Information) This section provides detailed reconciliations between GAAP reported figures and non-GAAP adjusted figures for Q1 2025 and Q1 2024, as well as for the 2025 full-year guidance, highlighting how key adjustments significantly impact net income and EPS GAAP to Non-GAAP Reconciliation (1Q25) | Metric (in thousands) | GAAP Reported | Adjustments | Non-GAAP Adjusted | |---|---|---|---| | Net Income (Loss) | $(92,541) | $197,774 | $105,233 | | Diluted EPS/(LPS) | $(1.52) | $3.20 | $1.68 | | Cost of product sales | $104,620 | $(34,929) | $69,691 | | SG&A | $514,013 | $(41,674) | $472,339 | | R&D | $180,652 | $(20,930) | $159,722 | - Key non-GAAP adjustments for Q1 2025 include **$154.4 million** for intangible asset amortization, **$67.7 million** for share-based compensation expense, and **$29.9 million** for acquisition accounting inventory fair value step-up[48](index=48&type=chunk) - The reconciliation for 2025 guidance shows a significant impact from intangible asset amortization (**$610-$660 million**) and acquired IPR&D (**$870-$900 million**) on the shift from GAAP net loss to non-GAAP adjusted net income[53](index=53&type=chunk)

Core Insights - Jazz Pharmaceuticals plc will participate in the BofA Securities 2025 Healthcare Conference on May 14, 2025 [1] - An audio webcast of the fireside chat will be available on the company's investor website and archived for 30 days [2] Company Overview - Jazz Pharmaceuticals is a global biopharma company focused on developing life-changing medicines for serious diseases with limited therapeutic options [3] - The company has a diverse portfolio, including leading therapies for sleep disorders, epilepsy, and a growing range of cancer treatments [3] - Jazz is headquartered in Dublin, Ireland, with research and development facilities and manufacturing sites in multiple countries [3]

Core Viewpoint - Jazz Pharmaceuticals is expected to report first-quarter 2025 earnings on May 6, with sales estimated at $978.6 million and earnings at $4.61 per share, reflecting a positive trend in earnings estimates for 2025 [1][3]. Financial Performance - Jazz Pharmaceuticals has exceeded earnings expectations in three of the last four quarters, with a trailing four-quarter average earnings surprise of 3.20% and a notable earnings surprise of 13.99% in the last quarter [3]. - The company currently has an Earnings ESP of -2.75% and a Zacks Rank of 3 (Hold) [5]. Revenue Segments - The company reports financial figures under two segments: Neuroscience and Oncology. The consensus estimate for neuroscience product sales is $649 million, while the estimate for oncology sales is $269 million [7][10]. - Sales of the sleep disorder drug Xywav are projected at $372 million, with expectations of continued growth due to its uptake in narcolepsy and idiopathic hypersomnia [8]. - Epidiolex sales are expected to rise to $234 million, driven by geographic expansion, while sales of the legacy drug Xyrem are anticipated to decline [9]. Oncology Performance - Sales of the chemotherapy drug Rylaze are expected to be impacted by recent updates to treatment protocols, with estimates pegged at $103 million [11]. - Other oncology drugs, including Zepzelca, Vyxeos, and Defitelio, are expected to grow at a mid-single-digit percentage during the quarter [11]. Stock Performance and Valuation - Jazz Pharmaceuticals' shares have declined about 6% year-to-date, compared to a 4% decline in the industry, and are currently trading below their 50-day and 200-day moving averages [13]. - The stock is trading at a price-to-sales (P/S) ratio of 1.76, lower than the industry average of 1.97 and below its five-year mean of 2.70, indicating a valuation discount [16]. Investment Thesis - The company has a diversified portfolio in neuroscience and oncology, although pipeline setbacks, such as the discontinuation of suvecaltamide development, pose concerns [18]. - Strategic acquisitions have bolstered the pipeline, with five oncology products marketed and an FDA decision on a sixth product expected by August 18 [19][20]. - Despite challenges, the rising EPS estimates for 2025 and a robust cash reserve of $3.0 billion at the end of 2024 provide reasons to remain invested in Jazz Pharmaceuticals [21].