HomeMost PopularInvestingJazz Pharmaceuticals Q3 Earnings: Sales Exceed, '23 Outlook Up

Jazz Pharmaceuticals Q3 Earnings: Sales Exceed, ’23 Outlook Up

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Jazz Pharmaceuticals (JAZZ) reported adjusted Q3 2023 earnings at $4.84 per share, slightly below the Zacks Consensus Estimate of $4.90. The figure declined 6% year over year due to increased R&D spending.

Total revenues in Q3 rose 3% year over year to $972.1 million, surpassing the Zacks Consensus Estimate of $969.5 million.

Quarterly Breakdown

Net product sales were up by 0.3% to $938.4 million. Royalty revenues from high-sodium oxybate authorized generic (AG) were $28.9 million. Other royalties and contract revenues dropped 1% to $4.8 million.

Neuroscience Products

Sales of neuroscience products declined by 5% to $675.1 million. The combined revenue from oxybate business (Xyrem + Xywav) dropped 11% to $456.7 million. Sales of the sleep disorder drug Xyrem decreased by 51% while Xywav sales rose by 30%. Epidiolex/Epidyolex sales increased by 9%. Sales of Sativex, a cannabis-based mouth spray, rose by 44%.

Oncology Products

Sales of oncology products increased by 17% to $260.4 million. Rylaze, a new drug, recorded sales of $104.9 million, up 43%. Zepzelca recorded sales worth $78 million, up 11%. Vyxeos and Defitelio sales experienced a slight decline.

Cost Analysis

Adjusted selling, general, and administrative (SG&A) expenses were down 1% to $273 million. Adjusted research and development (R&D) expenses rose 80% to $217.8 million.

2023 Guidance

Jazz revised its full-year 2023 financial guidance. Total revenues are expected to be in the range of $3.75-$3.88 billion. Neuroscience sales are expected to be $2.72-$2.83 billion while the Oncology franchise is expected to record sales in the range of $0.98-$1.05 billion.

Jazz’s shares were up 2.5% in after-market trading on Nov 8, likely due to the raised revenue guidance. In the year so far, Jazz’s shares have declined 19.5% compared to the industry’s 14.1% fall.

Adjusted SG&A expenses are anticipated between $1.07 billion and $1.11 billion, while adjusted R&D expenses are expected to be in the band of $780-$820 million. Management reiterated its 2023 adjusted earnings in the range of $18.15-$19.00 per share.

Pipeline Update

Management plans to initiate a rolling biologics license application (BLA) submission with the FDA for zanidatamab for second-line treatment of biliary tract cancer before year-end.

Zacks Rank & Other Stock Considerations

Jazz currently has a Zacks Rank #2 (Buy). Partnering companies Apellis Pharmaceuticals, Avid Bioservices, and Biohaven also carry a Zacks Rank #2.

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