Full Press Release Details
Focus on commercial execution drove 1Q23 total revenues of $892.8 million Continued adoption of Xywav ® ; net product sales increased 49% 1Q23 compared to 1Q22 Confident in blockbuster potential of Epidiolex ® ; net product sales increased 20% 1Q23 compared to 1Q22 Strong Rylaze ® demand drove 58% increase in net product sales 1Q23 compared to 1Q22 Enhanced pipeline positioned to deliver at least three late-stage data readouts by the end of 2024
DUBLIN , May 10, 2023 /PRNewswire/ -- Jazz Pharmaceuticals plc (Nasdaq: JAZZ ) today announced financial results for the first quarter of 2023, affirmed 2023 financial guidance and provided business updates.
"This quarter, we once again delivered strong commercial results, advanced our efforts to unlock the tremendous potential of our pipeline and built on our record of driving operational excellence. On the commercial front, key products launched over the past several years are demonstrating impressive and durable performance with Xywav annualizing at more than $1 billion and our oncology therapeutic area approaching $1 billion in annual revenue, driven by Rylaze and Zepzelca ® . Adoption of low-sodium Xywav continues to grow across both narcolepsy and idiopathic hypersomnia (IH), and we expect Xywav to remain the oxybate of choice in 2023. We remain confident in the blockbuster potential of Epidiolex /Epidyolex ® and its significant additional growth opportunities, and we look forward to continued strong in-person engagement with customers globally," said Bruce Cozadd , chairman and chief executive officer of Jazz Pharmaceuticals. "Our strong execution and robust pipeline position us well to achieve Vision 2025 and create meaningful value for our shareholders."
"Our enhanced pipeline is positioned to deliver at least three late-stage data readouts by the end of 2024, including JZP150 in post-traumatic stress disorder (PTSD), suvecaltamide in essential tremor (ET) and zanidatamab in first-line gastroesophageal adenocarcinoma (1L GEA)," said Rob Iannone , M.D., M.S.C.E., executive vice president, global head of research and development of Jazz Pharmaceuticals. "These late-stage trials are exploring new therapies with the potential to transform the lives of patients affected by diseases where substantial unmet medical need remains."
Business Updates
Key Commercial Products
Oxybate (Xywav and Xyrem ® ):
Xywav (calcium, magnesium, potassium, and sodium oxybates) oral solution:
Xywav for Narcolepsy:
Xywav for Idiopathic Hypersomnia (IH):
Xyrem (sodium oxybate) oral solution:
Epidiolex / Epidyolex (cannabidiol):
Rylaze (asparaginase erwinia chrysanthemi (recombinant)-rywn):
Zepzelca (lurbinectedin):
Key Pipeline Highlights
Suvecaltamide (JZP385):
Financial Highlights
| Three Months Ended March 31, | |||
| (In thousands, except per share amounts) | 2023 | 2022 | |
| Total revenues | $ 892,812 | $ 813,721 | |
| GAAP net income | $ 69,420 | $ 1,647 | |
| Non-GAAP adjusted net income | $ 285,261 | $ 261,934 | |
| GAAP earnings per share | $ 1.04 | $ 0.03 | |
| Non-GAAP adjusted EPS | $ 3.95 | $ 3.73 |
GAAP net income for 1Q23 was $69.4 million , or $1.04 per diluted share, compared to $1 .6 million, or $0.03 per diluted share, for 1Q22.
Non-GAAP adjusted net income for 1Q23 was $285.3 million , or $3.95 per diluted share, compared to $261.9 million , or $3.73 per diluted share, for 1Q22.
Reconciliations of applicable GAAP reported to non-GAAP adjusted information are included at the end of this press release.
| Three Months Ended March 31, | |||
| (In thousands) | 2023 | 2022 | |
| Xywav | $ 277,761 | $ 186,080 | |
| Xyrem | 178,130 | 247,497 | |
| Total Oxybate | 455,891 | 433,577 | |
| Epidiolex/Epidyolex | 188,909 | 157,893 | |
| Sativex | 7,098 | 4,742 | |
| Sunosi 1 | — | 15,878 | |
| Total Neuroscience | 651,898 | 612,090 | |
| Rylaze | 85,927 | 54,220 | |
| Zepzelca | 67,181 | 59,338 | |
| Defitelio/defibrotide | 39,079 | 49,489 | |
| Vyxeos | 36,700 | 33,757 | |
| Total Oncology | 228,887 | 196,804 | |
| Other | 3,434 | 943 | |
| Product sales, net | 884,219 | 809,837 | |
| High-sodium oxybate AG royalty revenue | 2,096 | — | |
| Other royalty and contract revenues | 6,497 | 3,884 | |
| Total revenues | $ 892,812 | $ 813,721 |
| ___________________________ |
| (1) Divestiture of Sunosi U.S. was completed in May 2022. |
Total revenues increased 10% in 1Q23 compared to the same period in 2022.
Operating Expenses and Effective Tax Rate
| Three Months Ended March 31, | |||
| (In thousands, except percentages) | 2023 | 2022 | |
| GAAP: | |||
| Cost of product sales | $ 128,644 | $ 115,284 | |
| Gross margin | 85.5 % | 85.8 % | |
| Selling, general and administrative | $ 297,917 | $ 308,813 | |
| % of total revenues | 33.4 % | 38.0 % | |
| Research and development | $ 189,410 | $ 129,981 | |
| % of total revenues | 21.2 % | 16.0 % | |
| Income tax expense (benefit) 1 | $ (15,324) | $ 536 | |
| Effective tax rate 1 | (27.8) % | 8.5 % |
| __________________________ | |
| 1. | The GAAP income tax benefit for 1Q23 increased as a result of the mix of pre-tax income and losses across tax jurisdictions, and increases in our patent box and foreign derived intangible income benefits. |
| Three Months Ended March 31, | |||
| (In thousands, except percentages) | 2023 | 2022 | |
| Non-GAAP adjusted: | |||
| Cost of product sales | $ 64,728 | $ 48,206 | |
| Gross margin | 92.7 % | 94.0 % | |
| Selling, general and administrative | $ 260,515 | $ 258,701 | |
| % of total revenues | 29.2 % | 31.8 % | |
| Research and development | $ 173,918 | $ 116,459 | |
| % of total revenues | 19.5 % | 14.3 % | |
| Income tax expense | $ 40,197 | $ 55,223 | |
| Effective tax rate | 12.3 % | 17.2 % |
Changes in operating expenses in 1Q23 over the prior year period are primarily due to the following:
Cash Flow and Balance Sheet As of March 31, 2023, cash and cash equivalents were $1 .2 billion, and the outstanding principal balance of the Company's long-term debt was $5 .8 billion. In addition, the Company had undrawn borrowing capacity under a revolving credit facility of $500 million . For the three months ended March 31, 2023, the Company generated $320 .7 million of cash from operations which is an increase of $111.7 million as compared to the same period in 2022, reflecting strong business performance and continued financial discipline.
2023 Financial Guidance The Company is affirming its full year 2023 financial guidance as follows:
| (In millions) | Guidance | |
| Revenues | $3,675 - $3,875 | |
| –Neuroscience (includes royalties from high-sodium oxybate AG) | $2,675 - $2,825 | |
| –Oncology | $950 - $1,050 |
| (In millions, except per share amounts and percentages) | GAAP | Non-GAAP | |
| Gross margin % | 89 % | 93% 1,6 | |
| SG&A expenses | $1,197 - $1,277 | $1,045 - $1,105 2,6 | |
| SG&A expenses as % of total revenues | 31% - 35% | 27% - 30% | |
| R&D expenses | $739 - $797 | $675 - $725 3,6 | |
| R&D expenses as % of total revenues | 19% - 22% | 17% - 20% | |
| Effective tax rate | (32)% - (8)% | 9% - 11% 4,6 | |
| Net income | $410 - $560 | $1,240 - $1,310 6 | |
| Net income per diluted share 5 | $5.90 - $7.90 | $16.90 - $17.85 6 | |
| Weighted-average ordinary shares used in per share calculations 5 | 75 | 75 |
| ___________________________ | |
| 1. | Excludes $135-$155 million of amortization of acquisition-related inventory fair value step-up and $14-$16 million of share-based compensation expense. |
| 2. | Excludes $152-$172 million of share-based compensation expense. |
| 3. | Excludes $64-$72 million of share-based compensation expense. |
| 4. | Excludes 41%-19% from the GAAP effective tax rate of (32%)-(8%) relating to the income tax effect of adjustments between GAAP net income and non-GAAP adjusted net income, resulting in a non-GAAP adjusted effective tax rate of 9%-11%. |
| 5. | Diluted EPS calculations for 2023 include 9 million shares related to the assumed conversion of the Exchangeable Senior Notes and the associated interest expense add-back to net income of $28 million and $25 million, on a GAAP and on a non-GAAP adjusted basis, respectively, under the "if converted" method. |
| 6. | See "Non-GAAP Financial Measures" below. Reconciliations of non-GAAP adjusted guidance measures are included above and, in the table titled "Reconciliation of GAAP to non-GAAP Adjusted 2023 Net Income Guidance" at the end of this press release. |
Conference Call Details Jazz Pharmaceuticals will host an investor conference call and live audio webcast today at 4:30 p.m. ET ( 9:30 p.m. IST ) to provide a business and financial update and discuss its 2023 first quarter results.
Interested parties may register for the call in advance here or via the Investors section of the Jazz Pharmaceuticals website at www.jazzpharmaceuticals.com . To ensure a timely connection, it is recommended that participants register at least 15 minutes prior to the scheduled webcast.
A replay of the webcast will be available via the Investors section of the Jazz Pharmaceuticals website at www.jazzpharmaceuticals.com .
About Jazz Pharmaceuticals Jazz Pharmaceuticals plc (NASDAQ: JAZZ ) is a global biopharmaceutical company whose purpose is to innovate to transform the lives of patients and their families. We are dedicated to developing life-changing medicines for people with serious diseases - often with limited or no therapeutic options. We have a diverse portfolio of marketed medicines and novel product candidates, from early- to late-stage development, in neuroscience and oncology. Within these therapeutic areas, we are identifying new options for patients by actively exploring small molecules and biologics, and through innovative delivery technologies and cannabinoid science. Jazz is headquartered in Dublin, Ireland and has employees around the globe, serving patients in nearly 75 countries. Please visit www.jazzpharmaceuticals.com for more information.
Non-GAAP Financial Measures To supplement Jazz Pharmaceuticals' financial results and guidance presented in accordance with U.S. generally accepted accounting principles (GAAP), the Company uses certain non-GAAP (also referred to as adjusted or non-GAAP adjusted) financial measures in this press release and the accompanying tables. In particular, the Company presents non-GAAP adjusted net income (and the related per share measure) and its line item components, as well as certain non-GAAP adjusted financial measures derived therefrom, including non-GAAP adjusted gross margin percentage and non-GAAP adjusted effective tax rate. Non-GAAP adjusted net income (and the related per share measure) and its line item components exclude from GAAP reported net income (and the related per share measure) and its line item components certain items, as detailed in the reconciliation tables that follow, and in the case of non-GAAP adjusted net income (and the related per share measure), adjust for the income tax effect of the non-GAAP adjustments. In this regard, the components of non-GAAP adjusted net income, including non-GAAP adjusted cost of product sales, SG&A expenses and R&D expenses, are income statement line items prepared on the same basis as, and therefore components of, the overall non-GAAP adjusted net income measure.
Caution Concerning Forward-Looking Statements This press release contains forward-looking statements, including, but not limited to, statements related to: the Company's growth prospects and future financial and operating results, including the Company's 2023 financial guidance and the Company's expectations related thereto and anticipated catalysts; the Company's expectations for total revenue growth in 2023 and anticipated product sales; expectations of continued growth in net sales of Xywav, Epidiolex/Epidyolex and the oncology portfolio; the blockbuster potential of Epidiolex/Epidyolex and its significant additional growth opportunities; the Company's expectations to executing multiple Epidyolex ex-U.S. launches this year; expectations that the royalties from AG will be higher in the second half of 2023 relative to the first half; the Company's ability to achieve Vision 2025 and the Company's progress related thereto; the Company's development, regulatory and commercialization strategy; the Company's advancement of pipeline programs and the timing of development activities, regulatory activities and submissions related thereto, including the ability to deliver at least three late-stage data readouts by the end of 2024, expectations to file an IND application for JZP898 in the U.S. this year and proof of concept of JZP441 in 2023; the Company's expectations with respect to its products and product candidates and the potential of the Company's products and product candidates, including the potential of zanidatamab to transform the current standard of care in multiple HER2-expressing cancers; expectations that Xywav will remain the oxybate of choice in 2023; the Company's capital allocation and corporate development strategy; the potential successful future development, manufacturing, regulatory and commercialization activities; the Company's expectation of meaningful growth as part of its Vision 2025; growing and diversifying the Company's revenue, investing in its pipeline of novel therapies, and delivering innovative therapies for patients and the potential benefits of such therapies; the Company's ability to realize the commercial potential of its products; the Company's net product sales and goals for net product sales from new and acquired products; the Company's views and expectations relating to its patent portfolio, including with respect to expected patent protection, as well as expectations with respect to exclusivity; planned or anticipated clinical trial events, including with respect to initiations, enrollment and data read-outs, and the anticipated timing thereof; the Company's clinical trials confirming clinical benefit or enabling regulatory submissions; planned or anticipated regulatory submissions and filings, and the anticipated timing thereof; potential regulatory approvals, including for Rylaze; and other statements that are not historical facts. These forward-looking statements are based on the Company's current plans, objectives, estimates, expectations and intentions and inherently involve significant risks and uncertainties.
Actual results and the timing of events could differ materially from those anticipated in such forward- looking statements as a result of these risks and uncertainties, which include, without limitation, risks and uncertainties associated with: maintaining or increasing sales of and revenue from the Company's oxybate products, Zepzelca and other key marketed products; effectively launching and commercializing the Company's other products and product candidates; the successful completion of development and regulatory activities with respect to the Company's product candidates, obtaining and maintaining adequate coverage and reimbursement for the Company's products; the time-consuming and uncertain regulatory approval process, including the risk that the Company's current and/or planned regulatory submissions may not be submitted, accepted or approved by applicable regulatory authorities in a timely manner or at all; the costly and time-consuming pharmaceutical product development and the uncertainty of clinical success, including risks related to failure or delays in successfully initiating or completing clinical trials and assessing patients; the Company's failure to realize the expected benefits of its acquisition of GW, including the failure to realize the blockbuster potential of Epidiolex; global economic, financial, and healthcare system disruptions and the current and potential future negative impacts to the Company's business operations and financial results; geopolitical events, including the conflict between Russia and Ukraine and related sanctions; macroeconomic conditions, including global financial markets, rising interest rates and inflation; regulatory initiatives and changes in tax laws; market volatility; protecting and enhancing the Company's intellectual property rights and the Company's commercial success being dependent upon the Company obtaining, maintaining and defending intellectual property protection for its products and product candidates; delays or problems in the supply or manufacture of the Company's products and product candidates; complying with applicable U.S. and non-U.S. regulatory requirements, including those governing the research, development, manufacturing and distribution of controlled substances; government investigations, legal proceedings and other actions; identifying and consummating corporate development transactions, financing these transactions and successfully integrating acquired product candidates, products and businesses; the Company's ability to realize the anticipated benefits of its collaborations and license agreements with third parties; the sufficiency of the Company's cash flows and capital resources; the Company's ability to achieve targeted or expected future financial performance and results and the uncertainty of future tax, accounting and other provisions and estimates; the Company's ability to meet its projected long-term goals and objectives, including as part of Vision 2025, in the time periods that the Company anticipates, or at all, and the inherent uncertainty and significant judgments and assumptions underlying the Company's long-term goals and objectives; and other risks and uncertainties affecting the Company, including those described from time to time under the caption "Risk Factors" and elsewhere in Jazz Pharmaceuticals' Securities and Exchange Commission filings and reports, including the Company's Annual Report on Form 10-K for the year ended December 31, 2022 , as supplemented by our Quarterly Report on Form 10-Q for the quarter ended March 31, 2023 , and future filings and reports by the Company. Other risks and uncertainties of which the Company is not currently aware may also affect the Company's forward-looking statements and may cause actual results and the timing of events to differ materially from those anticipated.
| JAZZ PHARMACEUTICALS PLC CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share amounts) (Unaudited) | |||
| Three Months Ended March 31, | |||
| 2023 | 2022 | ||
| Revenues: | |||
| Product sales, net | $ 884,219 | $ 809,837 | |
| Royalties and contract revenues | 8,593 | 3,884 | |
| Total revenues | 892,812 | 813,721 | |
| Operating expenses: | |||
| Cost of product sales (excluding amortization of acquired developed technologies) | 128,644 | 115,284 | |
| Selling, general and administrative | 297,917 | 308,813 | |
| Research and development | 189,410 | 129,981 | |
| Intangible asset amortization | 149,786 | 172,094 | |
| Acquired in-process research and development | 1,000 | — | |
| Total operating expenses | 766,757 | 726,172 | |
| Income from operations | 126,055 | 87,549 | |
| Interest expense, net | (74,147) | (70,684) | |
| Foreign exchange gain (loss) | 3,193 | (10,540) | |
| Income before income tax expense (benefit) and equity in loss of investees | 55,101 | 6,325 | |
| Income tax expense (benefit) | (15,324) | 536 | |
| Equity in loss of investees | 1,005 | 4,142 | |
| Net income | $ 69,420 | $ 1,647 | |
| Net income per ordinary share: | |||
| Basic | $ 1.09 | $ 0.03 | |
| Diluted | $ 1.04 | $ 0.03 | |
| Weighted-average ordinary shares used in per share calculations - basic | 63,494 | 61,865 | |
| Weighted-average ordinary shares used in per share calculations - diluted | 73,771 | 62,907 |
| JAZZ PHARMACEUTICALS PLC CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) | |||
| March 31, 2023 | December 31, 2022 | ||
| ASSETS | |||
| Current assets: | |||
| Cash and cash equivalents | $ 1,167,911 | $ 881,482 | |
| Accounts receivable, net of allowances | 623,938 | 651,493 | |
| Inventories | 674,778 | 714,061 | |
| Prepaid expenses | 72,779 | 91,912 | |
| Other current assets | 245,244 | 267,192 | |
| Total current assets | 2,784,650 | 2,606,140 | |
| Property, plant and equipment, net | 227,552 | 228,050 | |
| Operating lease assets | 75,538 | 73,326 | |
| Intangible assets, net | 5,764,209 | 5,794,437 | |
| Goodwill | 1,723,444 | 1,692,662 | |
| Deferred tax assets, net | 399,097 | 376,247 | |
| Deferred financing costs | 8,559 | 9,254 | |
| Other non-current assets | 64,076 | 55,139 | |
| Total assets | $ 11,047,125 | $ 10,835,255 | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||
| Current liabilities: | |||
| Accounts payable | $ 125,454 | $ 90,758 | |
| Accrued liabilities | 712,349 | 803,255 | |
| Current portion of long-term debt | 31,000 | 31,000 | |
| Income taxes payable | 40,095 | 7,717 | |
| Deferred revenue | 4 | 463 | |
| Total current liabilities | 908,902 | 933,193 | |
| Long-term debt, less current portion | 5,689,662 | 5,693,341 | |
| Operating lease liabilities, less current portion | 72,095 | 71,838 | |
| Deferred tax liabilities, net | 932,247 | 944,337 | |
| Other non-current liabilities | 109,178 | 106,812 | |
| Total shareholders' equity | 3,335,041 | 3,085,734 | |
| Total liabilities and shareholders' equity | $ 11,047,125 | $ 10,835,255 |
| JAZZ PHARMACEUTICALS PLC SUMMARY OF CASH FLOWS (In thousands) (Unaudited) | |||
| Three Months Ended March 31, | |||
| 2023 | 2022 | ||
| Net cash provided by operating activities | $ 320,708 | $ 208,979 | |
| Net cash used in investing activities | (4,822) | (37,292) | |
| Net cash used in provided by financing activities | (29,788) | (270,811) | |
| Effect of exchange rates on cash and cash equivalents | 331 | (1,489) | |
| Net increase (decrease) in cash and cash equivalents | $ 286,429 | $ (100,613) |
| JAZZ PHARMACEUTICALS PLC RECONCILIATIONS OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION (In thousands, except per share amounts) (Unaudited) | |||
| Three Months Ended March 31, | |||
| 2023 | 2022 | ||
| GAAP reported net income | $ 69,420 | $ 1,647 | |
| Intangible asset amortization | 149,786 | 172,094 | |
| Acquisition accounting inventory fair value step-up | 60,458 | 63,943 | |
| Share-based compensation expense | 56,352 | 47,629 | |
| Non-cash interest expense 1 | 4,766 | 12,168 | |
| Transaction and integration related expenses 2 | — | 11,130 | |
| Costs related to disposal of a business 3 | — | 8,010 | |
| Income tax effect of above adjustments | (55,521) | (54,687) | |
| Non-GAAP adjusted net income | $ 285,261 | $ 261,934 | |
| GAAP reported net income per diluted share 4 | $ 1.04 | $ 0.03 | |
| Non-GAAP adjusted net income per diluted share 4 | $ 3.95 | $ 3.73 | |
| Weighted-average ordinary shares used in diluted per share calculations - GAAP | 73,771 | 62,907 | |
| Weighted-average ordinary shares used in diluted per share calculations - non-GAAP | 73,771 | 71,950 |
| ________________________________________________ | |
| Explanation of Adjustments and Certain Line Items: | |
| 1. | Non-cash interest expense associated with debt issuance costs. |
| 2. | Transaction and integration expenses related to the acquisition of GW. |
| 3. | Costs related to disposal of Sunosi to Axsome and associated restructuring. |
| 4. | Diluted EPS was calculated using the "if-converted" method in relation to the Exchangeable Senior Notes. GAAP reported net income per diluted share for the three months ended March 31, 2023 includes 9.0 million shares related to the assumed conversion of the Exchangeable Senior Notes and the associated interest expense add-back to GAAP net income of $7.0 million. There was no impact on GAAP reported net income per diluted share for the three months ended March 31, 2022, as the Exchangeable Senior Notes were anti-dilutive. Non-GAAP adjusted net income per diluted share for the three months ended March 31, 2023 and the three months ended March 31, 2022 include 9.0 million shares related to the assumed conversion of the Exchangeable Senior Notes and the associated interest expense add-back to adjusted net income of $6.3 million. |
| JAZZ PHARMACEUTICALS PLC RECONCILIATIONS OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION CERTAIN LINE ITEMS - FOR THE THREE MONTHS ENDED MARCH 31, 2023 and 2022 (In thousands, except percentages) (Unaudited) | |||||||||||||||||
| Three months ended March 31, 2023 | |||||||||||||||||
| Cost of product sales | Gross margin | Selling, general and administrative | Research and development | Intangible asset amortization | Acquired IPR&D | Interest expense, net | Income tax expense (benefit) | Effective tax rate (1) | |||||||||
| GAAP Reported | $ 128,644 | 85.5 % | $ 297,917 | $ 189,410 | $ 149,786 | $ 1,000 | $ 74,147 | $ (15,324) | (27.8) % | ||||||||
| Non-GAAP Adjustments: | |||||||||||||||||
| Intangible asset amortization | — | — | — | — | (149,786) | — | — | — | — | ||||||||
| Share-based compensation expense | (3,458) | 0.4 | (37,402) | (15,492) | — | — | — | — | — | ||||||||
| Acquisition accounting inventory fair value step-up | (60,458) | 6.8 | — | — | — | — | — | — | — | ||||||||
| Non-cash interest expense | — | — | — | — | — | — | (4,766) | — | — | ||||||||
| Income tax effect of above adjustments | — | — | — | — | — | — | — | 55,521 | 40.1 | ||||||||
| Total of non-GAAP adjustments | (63,916) | 7.2 | (37,402) | (15,492) | (149,786) | — | (4,766) | 55,521 | 40.1 | ||||||||
| Non-GAAP Adjusted | $ 64,728 | 92.7 % | $ 260,515 | $ 173,918 | $ — | $ 1,000 | $ 69,381 | $ 40,197 | 12.3 % |
| Three months ended March 31, 2022 | |||||||||||||||
| Cost of product sales | Gross margin | Selling, general and administrative | Research and development | Intangible asset amortization | Interest expense, net | Income tax expense | Effective tax rate (1) | ||||||||
| GAAP Reported | $ 115,284 | 85.8 % | $ 308,813 | $ 129,981 | $ 172,094 | $ 70,684 | $ 536 | 8.5 % | |||||||
| Non-GAAP Adjustments: | |||||||||||||||
| Intangible asset amortization | — | — | — | — | (172,094) | — | — | — | |||||||
| Share-based compensation expense | (2,816) | 0.3 | (32,514) | (12,299) | — | — | — | — | |||||||
| Costs related to the disposal of a business | — | — | (8,010) | — | — | — | — | — | |||||||
| Transaction and integration related costs | (319) | — | (9,588) | (1,223) | — | — | — | — | |||||||
| Non-cash interest expense | — | — | — | — | — | (12,168) | — | — | |||||||
| Acquisition accounting inventory fair value step-up | (63,943) | 7.9 | — | — | — | — | — | — | |||||||
| Income tax effect of above adjustments | — | — | — | — | — | — | 54,687 | 8.7 | |||||||
| Total of non-GAAP adjustments | (67,078) | 8.2 | (50,112) | (13,522) | (172,094) | (12,168) | 54,687 | 8.7 | |||||||
| Non-GAAP Adjusted | $ 48,206 | 94.0 % | $ 258,701 | $ 116,459 | $ — | $ 58,516 | $ 55,223 | 17.2 % |
| __________________________ | |
| (1) | The GAAP effective tax rates were derived from the income tax benefit, which increased as a result of the mix of pre-tax income and losses across tax jurisdictions, and increases in our patent box and foreign derived intangible income benefits. |
| JAZZ PHARMACEUTICALS PLC RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED 2023 NET INCOME GUIDANCE (In millions, except per share amounts) (Unaudited) | |
| GAAP net income | $410 - $560 |
| Intangible asset amortization | 555 - 595 |
| Acquisition accounting inventory fair value step-up | 135 - 155 |
| Share-based compensation expense | 230 - 260 |
| Non-cash interest expense | 20 - 30 |
| Income tax effect of above adjustments | (190) - (210) |
| Non-GAAP adjusted net income | $1,240 - $1,310 |
| GAAP net income per diluted share | $5.90 - $7.90 |
| Non-GAAP adjusted net income per diluted share | $16.90 - $17.85 |
| Weighted-average ordinary shares used in per share calculations - GAAP and non-GAAP | 75 |
Investors: Andrea N. Flynn , Ph.D. Vice President, Head, Investor Relations Jazz Pharmaceuticals plc [email protected] Ireland +353 1 634 3211 U.S. +1 650 496 2717
Media: Kristin Bhavnani Head of Global Corporate Communications Jazz Pharmaceuticals plc [email protected] Ireland +353 1 637 2141 U.S. +1 215 867 4948
SOURCE Jazz Pharmaceuticals plc