Jazz Tops Q3 Earnings & Sales Estimates, Raises '24 EPS View

Core Viewpoint - Jazz Pharmaceuticals reported strong third-quarter 2024 earnings, exceeding expectations with adjusted earnings of $6.61 per share, a 37% increase year over year, and total revenues of $1.05 billion, up 9% year over year, driven by sales of Xywav and Epidiolex [1][4]. Financial Performance - Adjusted earnings per share were $6.61, surpassing the Zacks Consensus Estimate of $5.47 [1]. - Total revenues reached $1.05 billion, beating the Zacks Consensus Estimate of $1.04 billion [1]. - Net product sales increased by 5% year over year to $989.7 million, exceeding estimates of $976 million and $971 million [4]. - Royalty revenues from high-sodium oxybate authorized generic (AG) were $58.2 million, doubling from the previous year and beating the Zacks Consensus Estimate of $57 million [4]. - Other royalties and contract revenues rose 47% to $7.1 million [5]. Segment Performance - Neuroscience segment sales rose 4% to $702.7 million [6]. - Combined sales of Xyrem and Xywav fell 2% to $446.6 million, but this figure beat estimates of $431 million [6]. - Xywav sales increased 17% year over year to $388.5 million, attributed to its uptake in narcolepsy and idiopathic hypersomnia [7]. - Epidiolex/Epidyolex sales rose 18% to $251.6 million, driven by geographic expansion [8]. - Oncology segment sales increased 9% to $284.8 million, with Rylaze/Enrylaze sales at $98.8 million, down 6% year over year [9][10]. Operating Costs - Adjusted SG&A expenses rose 6% year over year to $288.7 million due to increased employee compensation [11]. - Adjusted R&D expenses decreased 17% to $181 million, primarily due to lower clinical program costs [11]. 2024 Guidance - Total revenues are projected to be between $4 billion and $4.1 billion, with the Oncology franchise expected to generate $1.08 billion to $1.13 billion, revised down from previous guidance [12]. - Neuroscience sales guidance remains at $2.83 billion to $2.93 billion, including over $200 million in royalty revenues from high-sodium oxybate AG [13]. - Adjusted earnings per share guidance has been raised to $19.50-$20.60, up from $19.20-$20.30 [13]. - Adjusted SG&A expenses are maintained at $1.19 billion to $1.23 billion, while adjusted R&D expenses are expected to be between $790 million and $830 million, revised down from $810 million to $850 million [14].