Jazz Pharmaceuticals plc
) reported fourth quarter 2012 earnings (including share-based
compensation charges but excluding other special items) of $1.38
per share, well above the year-ago earnings of 94 cents per share
and the Zacks Consensus Estimate of $1.27 per share.
Quarterly revenues increased 120% year over year to $183.7
million. The year over year increase in revenues for the quarter
was attributable to the acquisition of Azur Pharma and EUSA
Pharma. Strong sales of Xyrem also contributed to revenue growth.
However, fourth quarter revenues were below the Zacks Consensus
Estimate of $186 million.
Full-year earnings came in at $4.39 per share, up 42.9% from
the prior year. The Zacks Consensus Estimate for the full year
was $4.36 per share. Full year revenues increased 115% to $586
million. This was also below the Zacks Consensus Estimate of $593
Quarter in Detail
In the fourth quarter of 2012, Xyrem sales increased 58% to
$113.5 million. Jazz Pharma stated that during the quarter
approximately 10,450 patients were on Xyrem compared to 9,300 in
the year-ago period.
Erwinaze generated revenues of $34.4 million. Prialt revenues
increased 3.5% to $5.9 million. Meanwhile, psychiatry products,
Luvox CR, FazaClo HD and FazaClo LD generated revenues of $18
million, down 11.5% year over year.
Jazz Pharma's selling, general and administrative expenses
during the quarter shot up 68.7% to $61.3 million.
Research and development expenses during the quarter increased
93.3% to $7.2 million. The increase in operating expenses was
attributable to the increase in human resources and business
expansion costs resulting from the Azur Pharma and EUSA Pharma
For 2013, Jazz Pharma expects adjusted earnings in the range
of $5.70 to $5.90 per share. Share based compensation expense is
expected in the range of $48-$50 million.
Revenues are expected in the range of $805-$835 million. Xyrem
net sales are expected in the range of $530-$540 million.
Meanwhile, Erwinaze net sales are expected in the range of
Moreover, the company believes Luvox CR may face generic
competition in the form of oral formulation of Clozapine
Versacloz which is expected to be launched this year. Due to the
generic competition, revenues in the psychiatry business are
expected to decline on year over year basis.
Adjusted selling, general and administrative expenses and
research and development expenses are expected in the range of
Announces Licensing Deal
In addition to announcing fourth quarter results, Jazz Pharma
announced a licensing agreement with Concert Pharmaceuticals,
Inc. for the development and commercialization of
deuterium-modified sodium oxybate (D-SXB). The lead candidate
under this agreement is C-10323.
As per the terms of the agreement, Jazz Pharma will have
global commercial rights to C-10323. The company will be
responsible for the development of C-10323. Jazz Pharma is liable
to make an upfront payment to Concert Pharma as well as payments
on the achievement of milestones. Jazz Pharma will also pay
tiered royalties on global sales of any D-SXB product.
Jazz Pharma, a biopharma stock, currently carries a Zacks Rank
#4 (Sell). However, other stocks like
Celldex Therapeutics, Inc.
) appear to be more favorably placed in the biopharma space.
Cytokinetics carries a Zacks Rank #1 (Strong Buy), meanwhile
Array and Celldex carry a Zacks Rank #2 (Buy).
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