Jazz Pharma Updates 2021 Financial Guidance to Include Recently Acquired GW

2021 Total Revenue Guidance Increased to a Range of $3.02 Billion to $3.18 Billion

Acquisition of GW Expected to Drive Accelerated Revenue Growth and Diversification

azz Pharmaceuticals plc (Nasdaq: JAZZ) today updated its full year 2021 financial guidance to incorporate the GW Pharmaceuticals (GW) business, which the Company acquired on May 5, 2021.

"We expect 2021 to be another exciting, productive and transformational year for Jazz and are pleased to update our guidance to include the addition of GW. Our guidance reflects strong execution across our commercial portfolio, continued investment in both our ongoing and planned launches and strategic investments in R&D to advance therapies to patients in critical need of new treatment options. These investments will support the recent successful launches of both Xywav™ and Zepzelca™, the ongoing growth of Epidiolex®, the anticipated launches of JZP458 for ALL or LBL and Xywav in idiopathic hypersomnia, and the rolling launch of Epidyolex® in Europe. As part of our continued R&D efforts we also look forward to advancing our PTSD and essential tremor programs, the nabiximols clinical trial program to support a U.S. regulatory approval, and our new cannabinoid research platform," said Renée Galá, chief financial officer of Jazz Pharmaceuticals. "We believe Epidiolex has near-term blockbuster potential and expect the addition of Epidiolex and the GW pipeline to deliver double-digit revenue growth, accelerated revenue diversification and substantial shareholder value. With the addition of GW, we are excited to transform the lives of even more patients and their families."

As a result of the acquisition, the Company expects:

• Accelerated revenue diversification with double digit revenue growth; expect to generate 65% of 2022 revenues from products that have been launched or acquired since 20191
• Earnings accretion, with the GW acquisition expected to be non-GAAP adjusted EPS accretive in the first full calendar year of combined operations and substantially accretive thereafter
• Strong cash flows, which will enable rapid deleveraging, targeting less than 3.5x net leverage by the end of 2022
• Continued investment in its broad and productive pipeline to drive long-term shareholder value
• Additional value to be delivered through continued corporate development activity, while achieving deleveraging targets

2021 Financial Guidance2
The Company is updating its full year 2021 financial guidance for the combined organization, which includes the anticipated results of GW from May 5, 2021 to December 31, 2021.

	Guidance provided as of
(In millions)	May 4, 2021	June 17, 2021
Revenues	$2,550 - $2,700	$3,020 - $3,180
Total net product sales	$2,540 - $2,685	$3,010 - $3,165
-Neuroscience	$1,785 - $1,885	$2,260 - $2,360
-Oncology	$715 - $835	$715 - $835

GAAP:

	Guidance provided as of
(In millions, except per share amounts and percentages)	May 4, 2021		June 17, 2021
Gross margin %	93%		86%
SG&A expenses	$1,032 - $1,100		$1,468 - $1,560
SG&A expenses as % of total revenues	38% - 43%		46% - 52%
R&D Expenses	$365 - $410		$542 - $596
R&D expenses as % of total revenues	14% - 16%		17% - 20%
Effective tax rate	18% - 20%		18% - 21%
Net income (loss) per diluted share	$8.30 - $10.45		($4.70) – ($2.00)3
Weighted-average ordinary shares used in per share calculations	58-59		62

Non-GAAP:

	Guidance provided as of
(In millions, except per share amounts and percentages)	May 4, 2021		June 17, 2021
Gross margin %	93%		93%4,8
SG&A expenses	$905 - $945		$1,120 - $1,1805,8
SG&A expenses as % of total revenues	34% - 37%		35% - 39%
R&D Expenses	$330 - $370		$500 - $5406,8
R&D expenses as % of total revenues	12% - 15%		16% - 18%
Effective tax rate	16% - 18%		13% - 15%7,8
Net income per diluted share	$15.65 - $16.85		$13.40 - $14.703,8
Weighted-average ordinary shares used in per share calculations	58-59		62

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