Jazz Pharmaceuticals plc's
) first quarter 2013 adjusted earnings of 97 cents per share were
well above the year-ago earnings of 69 cents per share. Excluding
one-time items, stock-based compensation expense and
amortization, first quarter 2013 earnings per share were $1.37,
up 53.9%. The Zacks Consensus Estimate was $1.18 per share.
Quarterly revenues increased 91.4% year over year to $196.2
million. The year-over-year increase in revenues was attributable
to the acquisition of EUSA Pharma. Strong sales of Xyrem also
contributed to revenue growth. Revenues surpassed the Zacks
Consensus Estimate of $188 million.
Quarter in Detail
In the reported quarter, Xyrem sales increased 60% to $117.5
million. Jazz Pharma stated that during the quarter approximately
10,550 patients were on Xyrem compared to 9,500 in the year-ago
Erwinaze generated revenues of $41.8 million, up 27.1% year
over year. Prialt revenues were $5 million compared with $9.9
million a year ago. Under the supply agreement for distribution
and sale in Europe, the year-ago quarter included sales of Prialt
Eisai Co. Ltd.
). Meanwhile, psychiatry products generated sales of $17.7
million compared with $18.1 million a year ago. The decline was
due to the launch of a generic version of Luvox CR in Mar
Jazz Pharma's selling, general and administrative expenses
during the quarter shot up 67.5% to $64.1 million. The increase
was due to higher headcount resulting from the EUSA acquisition.
Research and development expenses during the quarter increased
70.4% to $6.7 million. The increase was attributable to the
company's efforts to develop its pipeline.
An intravenous formulation of Erwinaze is currently being
evaluated with results due later this year. 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 in the second half
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.
2013 Guidance Up
On the back of a strong first quarter, Jazz Pharma raised its
2013 guidance. For 2013, Jazz Pharma expects adjusted earnings in
the range of $6.10 to $6.30 per share, up from the earlier
guidance of $5.70 to $5.90. Share based compensation expense is
now expected in the range of $46-$48 million.
Jazz Pharma raised its revenue guidance to $830-$860 million
from the earlier range of $805-$835 million. Xyrem net sales are
now expected in the range of $540-$555 million, above the earlier
guidance of $530-$540 million. Erwinaze net sales are now
expected in the range of $150-$175 million compared to the
earlier guidance of $155-$165 million.
In addition to announcing first quarter results, Jazz Pharma
announced a share buyback program for up to $200
Jazz Pharma carries a Zacks Rank #1 (Strong Buy). Other
Catalyst Pharmaceutical Partners Inc.
) look equally attractive with a Zacks Rank #1 (Strong Buy).
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