Full Press Release Details
– Total revenues of $898 million in 1Q25 – – Xywav ® and Epidiolex ® revenues grew 9% and 10% year-over-year, respectively, in 1Q25 – – Completed submission of sNDA for Zepzelca ® in 1L ES-SCLC – – Affirming 2025 revenue guidance; updating financial guidance to reflect Chimerix acquisition and impact of certain Xyrem ® antitrust litigation settlements –
DUBLIN , May 6, 2025 /PRNewswire/ -- Jazz Pharmaceuticals plc (Nasdaq: JAZZ ) today announced financial results for the first quarter of 2025 and updated financial guidance for 2025.
"In the first quarter of 2025, our focus on commercial execution resulted in total revenues of $898 million , led by the strong performance of Xywav and Epidiolex . In addition, our team continues to receive positive feedback from healthcare providers on the launch of Ziihera ® in its first approved indication of 2L HER2+ BTC. We are affirming our 2025 total revenue guidance range of $4.15 - $4.40 billion, reflecting our confidence in our commercial portfolio delivering top-line growth this year," said Bruce Cozadd , chairman and chief executive officer, Jazz Pharmaceuticals. "We continue to make meaningful progress across our pipeline. We are pleased to report that we have submitted a supplemental New Drug Application for Zepzelca for maintenance therapy in first-line extensive-stage small cell lung cancer. In addition, we recently completed the acquisition of Chimerix, adding a near-term commercial opportunity to our late-stage pipeline that addresses a significant unmet need for patients with H3 K27M-mutant diffuse glioma, a rare, high-grade brain tumor that most commonly affects children and young adults. We also advanced multiple trials across our zanidatamab development program and expect top-line data readout from the HERIZON-GEA-01 trial in 1L GEA in the second half of 2025."
Business Updates
Commercial Updates
Xywav (calcium, magnesium, potassium, and sodium oxybates) oral solution:
Xyrem (sodium oxybate) oral solution and high-sodium oxybate authorized generic (AG) royalties:
Epidiolex / Epidyolex ® (cannabidiol):
Rylaze ® / Enrylaze ® (asparaginase erwinia chrysanthemi (recombinant)-rywn):
Zepzelca (lurbinectedin):
Ziihera (zanidatamab-hrii):
| __________________________ |
| 1 Based on 1Q25 Xywav net product sales. |
Corporate Development
Chimerix Acquisition:
Key Pipeline Highlights
Financial Highlights
| Three Months Ended March 31, | ||||
| (In thousands, except per share amounts) | 2025 | 2024 | ||
| Total revenues | $ 897,841 | $ 901,983 | ||
| GAAP net loss | $ (92,541) | $ (14,618) | ||
| Non-GAAP adjusted net income 1 | $ 105,233 | $ 178,430 | ||
| GAAP loss per share | $ (1.52) | $ (0.23) | ||
| Non-GAAP adjusted EPS 1 | $ 1.68 | $ 2.63 |
| ____________________________ | |
| 1. | Commencing with the first quarter of 2025, we are no longer including an adjustment for non-cash interest expense in the Company's non-GAAP adjusted financial measures and for the purposes of comparability, non-GAAP adjusted financial measures for the first quarter of 2024 have been updated to reflect this change. See "Non-GAAP Financial Measures" below. |
GAAP net loss for 1Q25 was $(92.5) million , or $(1.52) per diluted share, compared to $(14.6) million , or $(0.23) per diluted share, for 1Q24.
Non-GAAP adjusted net income for 1Q25 was $105 .2 million, or $1.68 per diluted share, compared to $178 .4 million, or $2.63 per diluted share, for 1Q24.
The GAAP net loss and non-GAAP adjusted net income for 1Q25 included an expense of $172.0 million related to certain Xyrem antitrust litigation settlements, which impacted our GAAP and non-GAAP results by $146.3 million (net of tax of $25.7 million ) or $2.38 per share on a GAAP basis and $2.34 per share on a non-GAAP adjusted basis.
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) | 2025 | 2024 | |
| Xywav | $ 344,804 | $ 315,300 | |
| Xyrem | 37,241 | 64,232 | |
| Epidiolex/Epidyolex | 217,737 | 198,716 | |
| Sativex | 5,407 | 2,735 | |
| Total Neuroscience | 605,189 | 580,983 | |
| Rylaze/Enrylaze | 94,233 | 102,750 | |
| Zepzelca | 63,033 | 75,100 | |
| Defitelio/defibrotide | 40,662 | 47,676 | |
| Vyxeos | 29,544 | 32,023 | |
| Ziihera | 1,975 | — | |
| Total Oncology | 229,447 | 257,549 | |
| Other | 4,782 | 3,570 | |
| Product sales, net | 839,418 | 842,102 | |
| High-sodium oxybate AG royalty revenue | 48,946 | 49,947 | |
| Other royalty and contract revenues | 9,477 | 9,934 | |
| Total revenues | $ 897,841 | $ 901,983 |
Total revenues for 1Q25 were in line with 1Q24.
Total neuroscience revenue, including high-sodium oxybate AG royalty revenue, was $654 .1 million in 1Q25, an increase of 4% compared to $630.9 million in 1Q24. The increase in 1Q25 was due to higher Xywav and Epidiolex/Epidyolex net product sales, partially offset by decreased Xyrem net product sales.
Oncology net product sales were $229 .4 million in 1Q25, a decrease of 11% compared to $257 .5 million in 1Q24. The decrease in 1Q25 was primarily due to lower net product sales of Zepzelca , Rylaze/Enrylaze and Defitelio/defibrotide. In 1Q25, Rylaze net product sales were negatively impacted due to an update to the COG pediatric treatment protocols for ALL, which impacts the timing of asparaginase administration.
Operating Expenses and Effective Tax Rate
| Three Months Ended March 31, | |||
| (In thousands, except percentages) | 2025 | 2024 | |
| GAAP: | |||
| Cost of product sales | $ 104,620 | $ 95,487 | |
| Gross margin | 87.5 % | 88.7 % | |
| Selling, general and administrative | $ 514,013 | $ 351,712 | |
| % of total revenues | 57.2 % | 39.0 % | |
| Research and development | $ 180,652 | $ 222,847 | |
| % of total revenues | 20.1 % | 24.7 % | |
| Acquired in-process research and development | $ — | $ 10,000 | |
| Income tax (benefit) expense 1 | $ (17,812) | $ 11,669 | |
| Effective tax rate 1 | 16.2 % | (728.4) % |
| _________________________ | |
| 1. | The GAAP income tax benefit in 1Q25 related primarily to the tax impact of certain Xyrem antitrust litigation settlements. The GAAP income tax expense in 1Q24 related primarily to tax shortfalls from share-based compensation. |
| Three Months Ended March 31, | |||
| (In thousands, except percentages) | 2025 | 2024 | |
| Non-GAAP adjusted: | |||
| Cost of product sales | $ 69,691 | $ 64,148 | |
| Gross margin | 91.7 % | 92.4 % | |
| Selling, general and administrative | $ 472,339 | $ 311,499 | |
| % of total revenues | 52.6 % | 34.5 % | |
| Research and development | $ 159,722 | $ 204,015 | |
| % of total revenues | 17.8 % | 22.6 % | |
| Acquired in-process research and development | $ — | $ 10,000 | |
| Income tax expense 1 | $ 36,394 | $ 64,735 | |
| Effective tax rate 1 | 25.6 % | 26.5 % |
| _________________________ | |
| 1. | The non-GAAP income tax expense decreased in the three months ended March 31, 2025, compared to the same period in 2024, primarily due to the tax impact of certain Xyrem antitrust settlements in 1Q25. |
Changes in operating expenses in 1Q25 over the prior year period are primarily due to the following:
Cash Flow and Balance Sheet
As of March 31, 2025, cash, cash equivalents and investments were $2 .6 billion, and the outstanding principal balance of the Company's long-term debt was $5 .4 billion. In addition, the Company had undrawn borrowing capacity under a revolving credit facility of $885 .0 million. For the three months ended March 31, 2025, the Company generated $429 .8 million of cash from operations reflecting strong business performance and continued financial discipline. In January 2025 , the Company made a voluntary prepayment of $750.0 million principal amount on the Term Loan B. In April 2025 , the Company acquired Chimerix for a total consideration of approximately $935 million , which was funded with cash and cash equivalents.
2025 Financial Guidance 1
Jazz Pharmaceuticals is updating its full year 2025 financial guidance primarily to reflect the impact of the Chimerix acquisition and certain Xyrem antitrust litigation settlements.
| Guidance provided as of | |||
| (In millions) | May 6, 2025 | February 25, 2025 | |
| Total Revenues | $4,150 - $4,400 | $4,150 - $4,400 | |
| GAAP: | |||
| (In millions, except per share amounts and percentages) | May 6, 2025 | February 25, 2025 | |
| Gross margin % | 88 % | 88 % | |
| SG&A expenses | $1,640 - $1,723 | $1,404 - $1,483 | |
| R&D expenses | $835 - $895 | $792 - $851 | |
| Acquired in-process research and development | $870 - $900 2 | - | |
| Effective tax rate | 0% - 10% | (5)% - 10% | |
| Net income (loss) | $(615) - $(450) 3 | $560 - $720 | |
| Net income (loss) per diluted share | $(10.00) - $(7.50) 3 | $9.15 - $11.50 | |
| Weighted-average ordinary shares used in per share calculations | 61 - 62 | 62 - 63 | |
| Non-GAAP: | |||
| (In millions, except per share amounts and percentages) | May 6, 2025 | February 25, 2025 | |
| Gross margin % | 92% 4,8 | 92 % | |
| SG&A expenses | $1,470 - $1,530 5,8 | $1,250 - $1,310 | |
| R&D expenses | $760 - $810 6,8 | $720 - $770 | |
| Acquired in-process research and development | $870 - $900 2 | - | |
| Effective tax rate | 35% - 45% 7,8 | 13% - 15% | |
| Net income | $250 - $350 3,8 | $1,400 - $1,500 | |
| Net income per diluted share | $4.00 - $5.60 3,8 | $22.50 - $24.00 | |
| Weighted-average ordinary shares used in per share calculations | 62 - 63 | 62 - 63 |
| ___________________________ | |
| 1. | The Company's updated financial guidance includes the anticipated results of the acquired Chimerix operations from the date of acquisition April 21, 2025. |
| 2. | Represents consideration allocated to IPR&D in the Chimerix acquisition, which the Company expects to account for as an asset acquisition. This guidance remains subject to final acquisition accounting adjustments. |
| 3. | The projected GAAP net loss and non-GAAP adjusted net income, include an acquired IPR&D expense relating to the acquisition of Chimerix of $885.0 million, at the midpoint, and certain Xyrem antitrust litigation settlements of $172.0 million, which are expected to impact the Company's GAAP and non-GAAP projected results by $1.0 billion (net of tax of $25.7 million) or $16.64 per share on a GAAP basis and $16.50 per share on a non-GAAP adjusted basis. |
| 4. | Excludes $135-$155 million of amortization of acquisition-related inventory fair value step-up, $14-$16 million of share-based compensation expense and $1 million of integration related expenses. |
| 5. | Excludes $154-$173 million of share-based compensation expense and $16-$20 million of integration related expenses. |
| 6. | Excludes $72-$81 million of share-based compensation expense and $3-$4 million of integration related expense. |
| 7. | Excludes (35)% from the GAAP effective tax rate of 0%-10% relating to the income tax effect of adjustments between GAAP net loss and non-GAAP adjusted net income, resulting in a non-GAAP adjusted effective tax rate of 35%-45%. |
| 8. | See "Non-GAAP Financial Measures" below. Reconciliations of non-GAAP adjusted guidance measures are included above and in the table titled "Reconciliation of 2025 GAAP Net Loss And Diluted LPS To Non-GAAP Adjusted Net Income and Diluted EPS 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 2025 first quarter results.
Audio webcast/conference call: U.S. Dial-In Number: +1 800 715 9871 Ireland Dial-In Number: +353 1800 943 926 Additional global dial-in numbers are available here . Passcode: 5080203
Interested parties may access the live audio webcast 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, including leading therapies for sleep disorders and epilepsy, and a growing portfolio of cancer treatments. Our patient-focused and science-driven approach powers pioneering research and development advancements across our robust pipeline of innovative therapeutics in oncology and neuroscience. Jazz is headquartered in Dublin, Ireland with research and development laboratories, manufacturing facilities and employees in multiple countries committed to serving patients worldwide. 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 loss (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 2025 financial guidance and the Company's expectations related thereto, including with respect to anticipated catalysts; expectations that Epidiolex will achieve blockbuster status in 2025; the ability to generate growth and long-term shareholder value; anticipated benefits and expenses relating to the Company's acquisition of Chimerix; the Company's advancement of pipeline programs and the timing of development activities, regulatory activities and submissions related thereto; the potential for a near-term commercial launch of dordaviprone in the U.S. if approved; the potential of the ongoing Phase 3 ACTION trial to confirm clinical benefit of dordaviprone in recurrent H3 K27M-mutant diffuse glioma and extend to use in first-line patients; planned or anticipated clinical trial events, including with respect to initiations, enrollment and data read-outs, and the anticipated timing thereof, including: top-line PFS data from a Phase 3 trial of zanidatamab in 1L GEA; and the Company's development, regulatory and commercialization strategy; the Company's expectations with respect to its products and product candidates and the potential of the Company's products and product candidates and the potential regulatory path related thereto, including Zepzelca's potential to change current practice in 1L ES-SCLC; the Company's capital allocation and corporate development strategy; the potential successful future development, manufacturing, regulatory and commercialization activities; 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; 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; 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, Xywav, Rylaze and Epidiolex/Epidyolex and other marketed products; the introduction of new products into the U.S. market that compete with, or otherwise disrupt the market for the Company's products and product candidates; 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; 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 international tariffs and trade restrictions and the conflict between Russia and Ukraine and related sanctions; macroeconomic conditions, including global financial markets, rising interest rates and inflation and recent and potential banking disruptions; 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 and exclusivity for its products and product candidates; the ability of the parties to obtain court approval of certain Xyrem class action settlement agreements and the risk that the Company may incur other charges or cash expenditures not currently contemplated due to unanticipated events that may occur, including in connection with certain Xyrem class action settlement agreements, and the risk that the Company is unable to reach settlement agreements with other Xyrem antitrust plaintiffs that are not party to certain Xyrem class action settlement agreements; 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, including Chimerix and the acquired product candidate dordaviprone; the Company's ability to realize the anticipated benefits of its corporate development transactions and 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, 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; fluctuations in the market price and trading volume of the Company's ordinary shares; the timing and availability of alternative investment opportunities; 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, 2024 , and future filings and reports by the Company, including the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 . 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 LOSS (In thousands, except per share amounts) (Unaudited) | |||
| Three Months Ended March 31, | |||
| 2025 | 2024 | ||
| Revenues: | |||
| Product sales, net | $ 839,418 | $ 842,102 | |
| Royalties and contract revenues | 58,423 | 59,881 | |
| Total revenues | 897,841 | 901,983 | |
| Operating expenses: | |||
| Cost of product sales (excluding amortization of acquired developed technologies) | 104,620 | 95,487 | |
| Selling, general and administrative | 514,013 | 351,712 | |
| Research and development | 180,652 | 222,847 | |
| Intangible asset amortization | 154,448 | 155,730 | |
| Acquired in-process research and development | — | 10,000 | |
| Total operating expenses | 953,733 | 835,776 | |
| Income (loss) from operations | (55,892) | 66,207 | |
| Interest expense, net | (53,706) | (66,116) | |
| Foreign exchange loss | (213) | (1,693) | |
| Loss before income tax (benefit) expense and equity in loss of investees | (109,811) | (1,602) | |
| Income tax (benefit) expense | (17,812) | 11,669 | |
| Equity in loss of investees | 542 | 1,347 | |
| Net loss | $ (92,541) | $ (14,618) | |
| Net loss per ordinary share: | |||
| Basic and diluted | $ (1.52) | $ (0.23) | |
| Weighted-average ordinary shares used in per share calculations - basic and diluted | 60,979 | 62,537 |
| JAZZ PHARMACEUTICALS PLC CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) | |||
| March 31, 2025 | December 31, 2024 | ||
| ASSETS | |||
| Current assets: | |||
| Cash and cash equivalents | $ 1,861,946 | $ 2,412,864 | |
| Investments | 710,000 | 580,000 | |
| Accounts receivable, net of allowances | 652,992 | 716,765 | |
| Inventories | 492,776 | 480,445 | |
| Prepaid expenses | 150,280 | 177,411 | |
| Other current assets | 259,823 | 261,543 | |
| Total current assets | 4,127,817 | 4,629,028 | |
| Property, plant and equipment, net | 178,869 | 173,413 | |
| Operating lease assets | 49,181 | 53,582 | |
| Intangible assets, net | 4,718,158 | 4,755,695 | |
| Goodwill | 1,760,045 | 1,716,323 | |
| Deferred tax assets, net | 575,097 | 560,245 | |
| Deferred financing costs | 8,999 | 9,489 | |
| Other non-current assets | 116,516 | 114,482 | |
| Total assets | $ 11,534,682 | $ 12,012,257 | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||
| Current liabilities: | |||
| Accounts payable | $ 95,930 | $ 77,869 | |
| Accrued liabilities | 1,063,918 | 910,947 | |
| Current portion of long-term debt | 31,000 | 31,000 | |
| Income taxes payable | 31,762 | 18,757 | |
| Total current liabilities | 1,222,610 | 1,038,573 | |
| Long-term debt, less current portion | 5,336,481 | 6,077,640 | |
| Operating lease liabilities, less current portion | 38,780 | 38,938 | |
| Deferred tax liabilities, net | 670,801 | 676,736 | |
| Other non-current liabilities | 91,119 | 86,614 | |
| Total shareholders' equity | 4,174,891 | 4,093,756 | |
| Total liabilities and shareholders' equity | $ 11,534,682 | $ 12,012,257 |
| JAZZ PHARMACEUTICALS PLC SUMMARY OF CASH FLOWS (In thousands) (Unaudited) | |||
| Three Months Ended March 31, | |||
| 2025 | 2024 | ||
| 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) | |
| Effect of exchange rates on cash and cash equivalents | 1,695 | (1,698) | |
| Net decrease in cash and cash equivalents | $ (550,918) | $ (62,925) |
| JAZZ PHARMACEUTICALS PLC RECONCILIATIONS OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION (In thousands, except per share amounts) (Unaudited) | |||||||
| Three Months Ended March 31, | |||||||
| 2025 | 2024 | ||||||
| Net Income (Loss) | Diluted EPS/(LP S) 1 | Net Income (Loss) | Diluted EPS/(LP S) 1 | ||||
| GAAP reported | $ (92,541) | $ (1.52) | $ (14,618) | $ (0.23) | |||
| Intangible asset amortization | 154,448 | 2.47 | 155,730 | 2.23 | |||
| Share-based compensation expense | 67,653 | 1.08 | 61,441 | 0.88 | |||
| Acquisition accounting inventory fair value step-up | 29,880 | 0.48 | 28,943 | 0.41 | |||
| Income tax effect of above adjustments | (54,207) | (0.87) | (53,066) | (0.75) | |||
| Effect of potentially dilutive ordinary shares on non-GAAP adjusted EPS 1 | — | 0.04 | — | 0.09 | |||
| Non-GAAP adjusted | $ 105,233 | $ 1.68 | $ 178,430 | $ 2.63 | |||
| Weighted-average ordinary shares used in diluted per share calculations - GAAP 1 | 60,979 | 62,537 | |||||
| Dilutive effect of employee equity incentive and purchase plans 1 | 1,564 | 788 | |||||
| Dilutive effect of the 2026 Notes 1 | — | 6,418 | |||||
| Weighted-average ordinary shares used in diluted per share calculations - non- GAAP 1 | 62,543 | 69,743 |
| ________________________________________________ | |
| Explanation of Adjustments and Certain Line Items: | |
| 1. | Potentially dilutive ordinary shares from Jazz's employee equity incentive and purchase plans were excluded from the calculation of diluted loss per ordinary share, or LPS, on a GAAP basis, for the three months ended March 31, 2025 and March 31, 2024 because their effect would have been anti-dilutive. Diluted earnings per ordinary share, or EPS, was calculated using the "if-converted" method in relation to the 2.000% exchangeable senior notes due 2026, or the 2026 Notes. In July 2024, we made the irrevocable election to net share settle the 2026 Notes. As a result, the assumed issuance of ordinary shares upon exchange of the 2026 Notes has only been included in the calculation of diluted EPS, on a non-GAAP adjusted basis, in the three months ended March 31, 2024. The potential issue of ordinary shares upon exchange of the 2026 Notes was anti-dilutive and had no impact on GAAP reported LPS for the three months ended March 31, 2024. |
| JAZZ PHARMACEUTICALS PLC RECONCILIATIONS OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION CERTAIN LINE ITEMS - FOR THE THREE MONTHS ENDED MARCH 31, 2025 (In thousands, except percentages) (Unaudited) | |||||||||||||||
| Three months ended March 31, 2025 | |||||||||||||||
| Cost of product sales | Gross margin | Selling, general and administrative | Research and development | Intangible asset amortization | Interest expense, net | Income tax (benefit) expense | Effective tax rate | ||||||||
| GAAP Reported | $ 104,620 | 87.5 % | $ 514,013 | $ 180,652 | $ 154,448 | $ 53,706 | $ (17,812) | 16.2 % | |||||||
| Non-GAAP Adjustments: | |||||||||||||||
| Intangible asset amortization | — | — | — | — | (154,448) | — | — | — | |||||||
| Share-based compensation expense | (5,049) | 0.6 | (41,674) | (20,930) | — | — | — | — | |||||||
| Acquisition accounting inventory fair value step-up | (29,880) | 3.6 | — | — | — | — | — | — | |||||||
| Income tax effect of above adjustments | — | — | — | — | — | — | 54,206 | 9.4 | |||||||
| Total of non-GAAP adjustments | (34,929) | 4.2 | (41,674) | (20,930) | (154,448) | — | 54,206 | 9.4 | |||||||
| Non-GAAP Adjusted | $ 69,691 | 91.7 % | $ 472,339 | $ 159,722 | $ — | $ 53,706 | $ 36,394 | 25.6 % |
| Three months ended March 31, 2024 | |||||||||||||||||
| 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 | Effective tax rate | |||||||||
| GAAP Reported | $ 95,487 | 88.7 % | $ 351,712 | $ 222,847 | $ 155,730 | $ 10,000 | $ 66,116 | $ 11,669 | (728.4) % | ||||||||
| Non-GAAP Adjustments: | |||||||||||||||||
| Intangible asset amortization | — | — | — | — | (155,730) | — | — | — | — | ||||||||
| Share-based compensation expense | (2,396) | 0.3 | (40,213) | (18,832) | — | — | — | — | — | ||||||||
| Acquisition accounting inventory fair value step-up | (28,943) | 3.4 | — | — | — | — | — | — | — | ||||||||
| Income tax effect of above adjustments | — | — | — | — | — | — | — | 53,066 | 754.9 | ||||||||
| Total of non-GAAP adjustments | (31,339) | 3.7 | (40,213) | (18,832) | (155,730) | — | — | 53,066 | 754.9 | ||||||||
| Non-GAAP Adjusted | $ 64,148 | 92.4 % | $ 311,499 | $ 204,015 | $ — | $ 10,000 | $ 66,116 | $ 64,735 | 26.5 % |
| JAZZ PHARMACEUTICALS PLC RECONCILIATION OF 2025 GAAP NET LOSS AND DILUTED LPS TO NON-GAAP ADJUSTED NET INCOME AND DILUTED EPS GUIDANCE (In millions, except per share amounts) (Unaudited) | |||
| Net Income (Loss) | Diluted EPS/(LPS) | ||
| GAAP | $(615) - $(450) | $(10.00) - $(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 expense | 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 | - | 0.15 | |
| Non-GAAP adjusted | $250 - $350 | $4.00 - $5.60 | |
| Weighted-average ordinary shares used in per share calculations - GAAP | 61 - 62 | ||
| Weighted-average ordinary shares used in per share calculations - non-GAAP | 62 - 63 |
The Company's 2025 financial guidance includes the anticipated results of the acquired Chimerix operations from the date of acquisition April 21, 2025 and an acquired IPR&D expense as a result of the Company's expected accounting treatment of Chimerix as an asset acquisition. This guidance remains subject to final acquisition accounting.
Investors: Jeff Macdonald Executive Director, 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