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Sep 30, 2021

Jazz Pharmaceuticals Q3 2021 Earnings Report

Jazz Pharmaceuticals reported third quarter 2021 financial results, which included a 39% increase in total revenues and the launch of Xywav for idiopathic hypersomnia.

Key Takeaways

Jazz Pharmaceuticals announced strong Q3 2021 results, with total revenues increasing by 39% to $838.1 million. The company also highlighted the successful integration of GW Pharmaceuticals and the launch of Xywav for idiopathic hypersomnia.

Total revenues increased 39% to $838.1 million compared to 3Q20, with 52% of net product sales from recently launched or acquired products.

Xywav net product sales were $153.1 million in 3Q21, with approximately 6,000 active patients exiting 3Q21.

Epidiolex/Epidyolex net product sales were $160.4 million in 3Q21, an increase of 21% compared to the same period of 2020 on a pro-forma basis.

Zepzelca net product sales increased 94% to $71.7 million in 3Q21 compared to the same period in 2020.

Total Revenue
$838M
Previous year: $601M
+39.5%
EPS
$4.2
Previous year: $4.31
-2.6%
Gross Margin
82.6%
Previous year: 92.9%
-11.1%
Gross Profit
$693M
Previous year: $559M
+24.0%
Cash and Equivalents
$672M
Previous year: $742M
-9.5%
Free Cash Flow
$266M
Previous year: $255M
+4.4%
Total Assets
$12.5B
Previous year: $6.29B
+98.3%

Jazz Pharmaceuticals

Jazz Pharmaceuticals

Forward Guidance

Jazz Pharmaceuticals is updating its full year 2021 financial guidance, raising its full-year earnings guidance and reducing both SG&A and R&D expense guidance. The company is narrowing its net sales guidance range for neuroscience and oncology, with a reduced mid-point for oncology net sales guidance which reflects the ongoing impacts of COVID-19.

Positive Outlook

  • The updated non-GAAP ANI range exceeds the upper end of the prior range.
  • Reducing both SG&A and R&D expense guidance on a GAAP basis.
  • Reducing both SG&A and R&D expense guidance on a non-GAAP adjusted basis.
  • Prioritization of new and ongoing value creating development projects.
  • Strength of underlying operations.

Challenges Ahead

  • Ongoing impacts of COVID-19 on legacy products
  • Rylaze competitive landscape at launch in 3Q21
  • Reduced mid-point for oncology net sales guidance
  • Reducing mid-point for total revenues guidance.
  • GW Acquisition to be dilutive to both GAAP and non-GAAP adjusted net income per diluted share in 2021.