Jazz Pharmaceuticals plc
) second-quarter 2013 adjusted earnings of $1 per share were well
above the year-ago earnings of 81 cents. Excluding one-time
items, stock-based compensation expense and amortization, second
quarter 2013 earnings per share were $1.43, up 31.2%. The Zacks
Consensus Estimate was $1.37 per share.
Quarterly revenues increased 67.7% year over year to $208.3
million. The year-over-year increase in revenues was attributable
to the addition of Erwinaze. Strong sales of Xyrem also
contributed to revenue growth. Revenues were marginally below the
Zacks Consensus Estimate of $209 million.
Quarter in Detail
In the reported quarter, Xyrem sales increased 50% to $133.7
million. Jazz Pharma stated that during the quarter approximately
10,700 patients were on Xyrem compared to 9,850 in the year-ago
Erwinaze generated revenues of $44.9 million, up 36.5% year
over year. Prialt revenues were $4.7 million compared with $5.6
million a year ago. Prialt's second quarter 2013 sales reflect
the effect of Jazz's transition to its Navigator Reimbursement
and Access Program for Prialt. Meanwhile, psychiatry products
generated sales of $11.8 million compared with $19.8 million a
year ago. The decline was due to generic competition.
Jazz Pharma's selling, general and administrative expenses
during the quarter shot up 57.39% to $73 million. The increase
was due to higher headcount resulting from the EUSA acquisition.
Research and development expenses during the quarter stood at
An intravenous formulation of Erwinaze is currently being
evaluated. Another study for the further use of Erwinaze in
adolescents and young adults with acute lymphoblastic leukemia
(ALL), who are hypersensitive to E. coli-derived asparaginase, is
slated to begin later this year. In Jun 2013, the U.S. Food and
Drug Administration (FDA) had granted fast track designation to
Asparec, which is being evaluated for the treatment of ALL in
patients who are hypersensitive to E. coli asparaginase.
Leukotac, an anti-CD25 monoclonal antibody, is in a phase III
study in Europe for the treatment of steroid-refractory acute
graft vs. host disease.
The company is planning a regulatory filing by the end of 2013
2013 Guidance Up
Jazz Pharma raised its 2013 guidance. For 2013, Jazz Pharma
expects adjusted earnings in the range of $6.20 to $6.40 per
share, up from the earlier guidance of $6.10 to $6.30. Share
based compensation expense is expected in the range of $45-$47
Jazz Pharma raised its revenue guidance to $860-$880 million
from the earlier range of $830-$860 million. Xyrem net sales are
now expected in the range of $560-$570 million, above the earlier
guidance of $540-$555 million. Erwinaze net sales are now
expected in the range of $170-$180 million compared to the
earlier guidance of $150-$175 million.
Jazz Pharma carries a Zacks Rank #2 (Buy). Currently,
companies which look well- positioned include like
Gilead Sciences Inc.
) with a Zacks Rank #1 (Strong Buy), and
Aegerion Pharmaceuticals, Inc.
) with a Zacks Rank #2.
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