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Jazz's (JAZZ) Q3 Earnings Beat Estimates, New Drugs Drive Sales
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Jazz Pharmaceuticals (JAZZ - Free Report) reported adjusted earnings of $5.17 per share in third-quarter 2022, beating the Zacks Consensus Estimate of $4.72. Earnings were up 23.1% year over year.
Total revenues in the reported quarter rose 12% year over year to $940.7 million. Total revenues beat the Zacks Consensus Estimate of $939.9 million. The upside was driven by sales of new drugs and drugs added from the acquisition of GW Pharmaceuticals.
Net product sales increased 12.2% from the year-ago quarter’s levels to $935.8 million. Royalties and contract revenues were up 26.3% to $4.9 million in the quarter.
Neuroscience Products
Sales of Jazz’s neuroscience products increased 10.1% to $711.4 million.
Net product sales for the combined oxybate business (Xyrem + Xywav) increased 11% to $512 million in the quarter. During the quarter, average active oxybate patients rose 10% year over year to approximately 17,600.
Sales of the sleep disorder drug Xyrem declined 16.7% year over year to $256 million due to patients switching to Xywav. Jazz expects an authorized generic version of Xyrem to be launched in late 2022 or January 2023, which should hurt sales.
Xywav, a low-sodium formulation of Xyrem, recorded sales of $255.9 million in the quarter, up 67.2% year over year and 8.9% sequentially. The upside can be attributed to the encouraging uptake of the drug in narcolepsy and idiopathic hypersomnia (IH) indications. As of October 2022-end, Jazz achieved a new significant milestone. There are now more narcolepsy patients taking Xywav than those taking Xyrem.
Sales of the epilepsy drug Epidiolex/Epidyolex rose 22% to $196.2 million. The drug was added to Jazz’s pipeline with the GW Pharmaceuticals’ acquisition in 2021. Jazz is making significant progress related to the launch of Epidyolex in Europe and other ex-U.S. markets.
During the quarter, JAZZ initiated a pivotal late-stage study on Epidiolex to support its label expansion to include epilepsy patients with myoclonic-atonic seizures. Jazz expects that Epidiolex has the potential to be a blockbuster drug in epilepsy indications.
Another drug added with the GW Pharma acquisition was Sativex, a cannabis-based mouth spray for multiple sclerosis-related spasticities, approved in Europe but not in the United States. The drug recorded sales of $3.2 million in the quarter, down 47.2% year over year.
Oncology Products
Oncology product sales increased 20.9% to $223.4 million.
New drug Rylaze recorded sales of $73.5 million in the quarter, up 256% year over year and 0.8% sequentially. Jazz stated that demand remained strong during the quarter. Rylaze is only approved in the United States for treating acute lymphoblastic leukemia (ALL) patients. A regulatory application seeking approval for this ALL drug was filed in Europe in May 2022.
Zepzelca, approved for small cell lung cancer, recorded sales worth $70.3 million in the quarter, down 2% year over year. Per management, sales in the previous quarter were favorably impacted due to lower-than-expected actual returns.
Acute myeloid leukemia drug, Vyxeos, generated sales of $30.1 million, down 13.3% from the year-ago period’s levels.
Defitelio sales were down 14.3% year over year at $49.5 million in the quarter.
Cost Discussion
Adjusted selling, general and administrative (SG&A) expenses were down 1.4% to $274.7 million due to lower GW acquisition-related transaction and integration expenses incurred by the company compared to the year-ago quarter.
Adjusted research and development (R&D) expenses fell 2.9% to $120.8 million, mainly due to lower expenses incurred by management to support the company’s ongoing clinical activities compared with the year-ago quarter’s levels.
2022 Guidance Revised
While the company raised the lower range of its previously provided guidance for revenues in 2022, it raised its outlook for adjusted earnings. The company expects adjusted earnings to be in the range of $17.20 - $17.85 per share, up from the previously provided guidance range of $16.70-$17.70.
Total revenues are now expected to be in the range of $3.6-$3.7 billion compared with the previously-provided range of $3.5-$3.7 billion.
Shares of Jazz were up 4.3% in after-market trading on Nov 9 following the favorable revision of financial guidance. In the year so far, Jazz’s shares have increased 9.9% against the industry’s decline of 32.7%.
Image Source: Zacks Investment Research
Neuroscience sales are expected in the range of $2.7 billion-$2.8 billion (previous guidance was $2.6 billion-$2.8 billion), while sales for the Oncology franchise are expected in the range of $860 million-$920 million (previous guidance was $840 million-$920 million).
Adjusted SG&A expenses are anticipated to be between $1.09 billion and $1.12 billion (previous guidance was $1.08 billion-$1.13 billion), while Adjusted R&D expenses are now expected to be in the band of $490 million to $520 million billion (previous guidance was $560-$600 million).
Estimates for Angion Biomedica’s 2022 loss per share have narrowed from $1.64 to $1.53 in the past 60 days. Angion’s loss estimates for 2023 have narrowed from $1.54 to $1.43 in the past 60 days. Shares of Angion Biomedica have plunged 72.1% in the year-to-date period.
Earnings of Angion Biomedica beat estimates in three of the last four quarters and missed the mark on one occasion, the average surprise being 62.85%. In the last reported quarter, Angion Biomedica delivered an earnings surprise of 34.78%.
Gilead’s stock has risen 13.4% this year so far. While Gilead’s earnings estimates for 2022 have risen from $6.62 to $7.07 per share in the past 60 days, estimates for 2023 have increased from $6.32 to $6.79 per share during the same period.
Gilead beat earnings estimates in three of the last four quarters and missed the mark on one occasion, the average surprise being 0.36%. In the last reported quarter, Gilead delivered an earnings surprise of 31.94%.
Vertex’s stock has risen 40.9% this year so far. While Vertex’s earnings estimates for 2022 have risen from $14.21 to $14.61 per share in the past 60 days, estimates for 2023 have increased from $15.12 to $15.60 per share during the same period.
Vertex beat earnings estimates in three of the last four quarters and missed the mark on one occasion, the average surprise being 3.16%. In the last reported quarter, Vertex reported an earnings surprise of 8.67%.
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Jazz's (JAZZ) Q3 Earnings Beat Estimates, New Drugs Drive Sales
Jazz Pharmaceuticals (JAZZ - Free Report) reported adjusted earnings of $5.17 per share in third-quarter 2022, beating the Zacks Consensus Estimate of $4.72. Earnings were up 23.1% year over year.
Total revenues in the reported quarter rose 12% year over year to $940.7 million. Total revenues beat the Zacks Consensus Estimate of $939.9 million. The upside was driven by sales of new drugs and drugs added from the acquisition of GW Pharmaceuticals.
Net product sales increased 12.2% from the year-ago quarter’s levels to $935.8 million. Royalties and contract revenues were up 26.3% to $4.9 million in the quarter.
Neuroscience Products
Sales of Jazz’s neuroscience products increased 10.1% to $711.4 million.
Net product sales for the combined oxybate business (Xyrem + Xywav) increased 11% to $512 million in the quarter. During the quarter, average active oxybate patients rose 10% year over year to approximately 17,600.
Sales of the sleep disorder drug Xyrem declined 16.7% year over year to $256 million due to patients switching to Xywav. Jazz expects an authorized generic version of Xyrem to be launched in late 2022 or January 2023, which should hurt sales.
Xywav, a low-sodium formulation of Xyrem, recorded sales of $255.9 million in the quarter, up 67.2% year over year and 8.9% sequentially. The upside can be attributed to the encouraging uptake of the drug in narcolepsy and idiopathic hypersomnia (IH) indications. As of October 2022-end, Jazz achieved a new significant milestone. There are now more narcolepsy patients taking Xywav than those taking Xyrem.
Sales of the epilepsy drug Epidiolex/Epidyolex rose 22% to $196.2 million. The drug was added to Jazz’s pipeline with the GW Pharmaceuticals’ acquisition in 2021. Jazz is making significant progress related to the launch of Epidyolex in Europe and other ex-U.S. markets.
During the quarter, JAZZ initiated a pivotal late-stage study on Epidiolex to support its label expansion to include epilepsy patients with myoclonic-atonic seizures. Jazz expects that Epidiolex has the potential to be a blockbuster drug in epilepsy indications.
Another drug added with the GW Pharma acquisition was Sativex, a cannabis-based mouth spray for multiple sclerosis-related spasticities, approved in Europe but not in the United States. The drug recorded sales of $3.2 million in the quarter, down 47.2% year over year.
Oncology Products
Oncology product sales increased 20.9% to $223.4 million.
New drug Rylaze recorded sales of $73.5 million in the quarter, up 256% year over year and 0.8% sequentially. Jazz stated that demand remained strong during the quarter. Rylaze is only approved in the United States for treating acute lymphoblastic leukemia (ALL) patients. A regulatory application seeking approval for this ALL drug was filed in Europe in May 2022.
Zepzelca, approved for small cell lung cancer, recorded sales worth $70.3 million in the quarter, down 2% year over year. Per management, sales in the previous quarter were favorably impacted due to lower-than-expected actual returns.
Acute myeloid leukemia drug, Vyxeos, generated sales of $30.1 million, down 13.3% from the year-ago period’s levels.
Defitelio sales were down 14.3% year over year at $49.5 million in the quarter.
Cost Discussion
Adjusted selling, general and administrative (SG&A) expenses were down 1.4% to $274.7 million due to lower GW acquisition-related transaction and integration expenses incurred by the company compared to the year-ago quarter.
Adjusted research and development (R&D) expenses fell 2.9% to $120.8 million, mainly due to lower expenses incurred by management to support the company’s ongoing clinical activities compared with the year-ago quarter’s levels.
2022 Guidance Revised
While the company raised the lower range of its previously provided guidance for revenues in 2022, it raised its outlook for adjusted earnings. The company expects adjusted earnings to be in the range of $17.20 - $17.85 per share, up from the previously provided guidance range of $16.70-$17.70.
Total revenues are now expected to be in the range of $3.6-$3.7 billion compared with the previously-provided range of $3.5-$3.7 billion.
Shares of Jazz were up 4.3% in after-market trading on Nov 9 following the favorable revision of financial guidance. In the year so far, Jazz’s shares have increased 9.9% against the industry’s decline of 32.7%.
Image Source: Zacks Investment Research
Neuroscience sales are expected in the range of $2.7 billion-$2.8 billion (previous guidance was $2.6 billion-$2.8 billion), while sales for the Oncology franchise are expected in the range of $860 million-$920 million (previous guidance was $840 million-$920 million).
Adjusted SG&A expenses are anticipated to be between $1.09 billion and $1.12 billion (previous guidance was $1.08 billion-$1.13 billion), while Adjusted R&D expenses are now expected to be in the band of $490 million to $520 million billion (previous guidance was $560-$600 million).
Jazz Pharmaceuticals PLC Price
Jazz Pharmaceuticals PLC price | Jazz Pharmaceuticals PLC Quote
Zacks Rank & Other Stock to Consider
Jazz currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the overall healthcare sector include Angion Biomedica , Gilead Sciences (GILD - Free Report) and Vertex Pharmaceuticals (VRTX - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Estimates for Angion Biomedica’s 2022 loss per share have narrowed from $1.64 to $1.53 in the past 60 days. Angion’s loss estimates for 2023 have narrowed from $1.54 to $1.43 in the past 60 days. Shares of Angion Biomedica have plunged 72.1% in the year-to-date period.
Earnings of Angion Biomedica beat estimates in three of the last four quarters and missed the mark on one occasion, the average surprise being 62.85%. In the last reported quarter, Angion Biomedica delivered an earnings surprise of 34.78%.
Gilead’s stock has risen 13.4% this year so far. While Gilead’s earnings estimates for 2022 have risen from $6.62 to $7.07 per share in the past 60 days, estimates for 2023 have increased from $6.32 to $6.79 per share during the same period.
Gilead beat earnings estimates in three of the last four quarters and missed the mark on one occasion, the average surprise being 0.36%. In the last reported quarter, Gilead delivered an earnings surprise of 31.94%.
Vertex’s stock has risen 40.9% this year so far. While Vertex’s earnings estimates for 2022 have risen from $14.21 to $14.61 per share in the past 60 days, estimates for 2023 have increased from $15.12 to $15.60 per share during the same period.
Vertex beat earnings estimates in three of the last four quarters and missed the mark on one occasion, the average surprise being 3.16%. In the last reported quarter, Vertex reported an earnings surprise of 8.67%.