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Jun 30, 2022

Jazz Pharmaceuticals Q2 2022 Earnings Report

Financial results for the second quarter of 2022 were announced and 2022 financial guidance was affirmed.

Key Takeaways

Jazz Pharmaceuticals announced strong second quarter financial results with total revenues of $932.9 million, a 24% increase compared to the same period in 2021, and affirmed its 2022 financial guidance.

Total revenues for 2Q22 were $932.9 million, a 24% increase compared to the same period in 2021.

Net product sales for the combined oxybate business increased 10% to $504.4 million in 2Q22 compared to the same period in 2021.

Epidiolex/Epidyolex net product sales increased 12% to $175.3 million in 2Q22 compared to the same period in 2021, on a proforma basis.

Rylaze net product sales were $73.0 million in 2Q22.

Total Revenue
$933M
Previous year: $752M
+24.1%
EPS
$4.3
Previous year: $3.9
+10.3%
Gross Margin
86.6%
Previous year: 84.1%
+3.0%
Gross Profit
$809M
Previous year: $633M
+27.8%
Cash and Equivalents
$711M
Previous year: $891M
-20.2%
Free Cash Flow
$291M
Previous year: $327M
-11.0%
Total Assets
$11.2B
Previous year: $13.2B
-15.2%

Jazz Pharmaceuticals

Jazz Pharmaceuticals

Forward Guidance

The Company has updated its GAAP guidance primarily to reflect the impact of foreign currency exchange movements on non-USD denominated amortization and inventory step up expense. The Company is affirming its non-GAAP adjusted guidance.

Positive Outlook

  • Revenues: $3,500 - $3,700 million
  • Neuroscience (includes potential Xyrem authorized generic royalties): $2,600 - $2,800 million
  • Oncology: $840 - $920 million
  • Gross margin %: 85%
  • Effective tax rate: (22)% - 1,104%

Challenges Ahead

  • SG&A expenses: $1,299 - $1,389 million
  • SG&A expenses as % of total revenues: 35% - 40%
  • R&D expenses: $621 - $669 million
  • R&D expenses as % of total revenues: 17% - 19%
  • Acquired in-process research and development expenses: $69 million