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Sep 30, 2020

Jazz Pharmaceuticals Q3 2020 Earnings Report

Jazz Pharmaceuticals announced strong financial results for the third quarter of 2020, marked by increased total revenues and key product launches.

Key Takeaways

Jazz Pharmaceuticals reported a 12% increase in total revenues compared to the third quarter of 2019, driven by strong demand for Zepzelca and the launch of Xywav. The company also updated its 2020 financial guidance, increasing total revenue expectations to a range of $2.32 billion to $2.38 billion.

Total revenues increased by 12% compared to Q3 2019.

Zepzelca net product sales were $36.9 million following its launch in July 2020.

Xywav was launched in the U.S. for narcolepsy treatment in early November 2020.

Positive top-line results were announced for the JZP-258 Phase 3 study in idiopathic hypersomnia.

Total Revenue
$601M
Previous year: $538M
+11.8%
EPS
$4.31
Previous year: $4.1
+5.1%
Gross Margin
92.9%
Previous year: 94.1%
-1.3%
Gross Profit
$559M
Previous year: $506M
+10.4%
Cash and Equivalents
$742M
Previous year: $795M
-6.7%
Free Cash Flow
$255M
Previous year: $326M
-22.0%
Total Assets
$6.29B
Previous year: $5.53B
+13.8%

Jazz Pharmaceuticals

Jazz Pharmaceuticals

Jazz Pharmaceuticals Revenue by Geographic Location

Forward Guidance

Jazz Pharmaceuticals updated its full year 2020 financial guidance, increasing total revenue guidance to $2.32 billion - $2.38 billion.

Positive Outlook

  • Total revenue guidance increased to $2.32 billion - $2.38 billion.
  • Total net product sales guidance increased to $2.30 billion - $2.36 billion.
  • Oncology net product sales guidance increased to $525 million - $565 million.
  • Neuroscience net sales guidance increased to $1.76 billion - $1.80 billion.
  • Net income per diluted share raised to $3.70 - $4.85

Challenges Ahead

  • SG&A expenses increased to $820 million - $858 million.
  • R&D Expenses remained unchanged at $302 million - $338 million.
  • Acquired in-process research and development expenses increased to $251 million.
  • Impairment charge at $136 million.
  • Effective tax rate between 10% - 17%