Jazz Pharmaceuticals plc
) reported third quarter 2012 earnings (including share-based
compensation charges but excluding other special items) of $1.20
per share, above the year-ago earnings of 87 cents per share but
in line with the Zacks Consensus Estimate. Higher revenues
boosted earnings in the third quarter of 2012.
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Quarterly revenues increased 139.5% to $175.5 million. However,
third quarter revenues were below the Zacks Consensus Estimate of
$180 million. Higher revenues were attributable to the addition
of Azur Pharma and EUSA Pharma's US commercial businesses. Strong
sales of Xyrem (sodium oxybate) also aided revenues.
Quarter in Detail
In the third quarter of 2012, Xyrem sales increased 64% to $102.6
million. During the quarter, approximately 10,200 patients were
on Xyrem compared to slightly over 9,000 in the year-ago period.
Erwinaze, which received approval in the US in November 2011,
generated sales of $31.7 million. We note that the company
reported pro forma net sales of $32.9 million in the previous
Prialt sales increased 9% to $5.4 million, while sales of
psychiatry products, Luvox CR (fluvoxamine maleate), FazaClo HD
(clozapine, USP) and FazaClo LD, went up 7% to $21 million in the
third quarter, on a pro forma basis.
Jazz Pharma's adjusted selling, general and administrative
(SG&A) expenses shot up 131.9% to $57.0 million, primarily
due to an increase in the number of employees following the
integration of Azur Pharma and EUSA Pharma's US commercial
During the quarter, adjusted research and development (R&D)
expenses amounted to $6.9 million, reflecting an increase of
For 2012, Jazz Pharma expects adjusted earnings (excluding
share-based compensation) in the range of $4.65 - $4.75 per
share. Share-based compensation is expected in the range of $23 -
Jazz Pharma expects 2012 revenues in the range of $575 - $585
million with Xyrem and Erwinaze contributing $375-$380 million
and $65-$69 million, respectively.
Adjusted (excluding share-based compensation) SG&A and
R&D expenses combined are expected to be between $200 million
and $205 million.
Jazz Pharma was in the news a few weeks back when it sold its
women's health business to Meda Pharmaceuticals Inc., the US
subsidiary of Meda AB.
The sale of the women's health business should allow Jazz Pharma
to focus on its core areas like narcolepsy, oncology, pain and
psychiatry. However, these markets are highly competitive with
the presence of big companies like
Roche Holdings AG
Bristol-Myers Squibb Company
Currently, we have a Neutral recommendation on Jazz Pharma. The
stock carries a Zacks #3 Rank (Hold rating) in the short run.