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Tuesday, May 6, 2025

Jazz Pharmaceuticals misses estimates, slashes guidance on litigation costs

 Jazz Pharmaceuticals plc (NASDAQ:JAZZ) reported first quarter earnings that fell well short of analyst expectations and dramatically lowered its full-year profit outlook, sending shares down 1.6% in after-hours trading.

The biopharmaceutical company posted adjusted earnings per share of $1.68 for Q1, missing the consensus estimate of $4.81 by a wide margin. Revenue came in at $897.8 million, below expectations of $983.9 million.

Jazz attributed the earnings miss primarily to a $172 million expense related to Xyrem antitrust litigation settlements. This impacted GAAP and non-GAAP results by $146.3 million after tax, or $2.34 per share on an adjusted basis.

For the full year 2025, Jazz slashed its adjusted EPS guidance to a range of $4.00 to $5.60, down sharply from its previous outlook of $22.50 to $24.00 and far below the $23.23 analyst consensus. The company maintained its revenue forecast of $4.15 billion to $4.40 billion.

"In the first quarter of 2025, our focus on commercial execution resulted in total revenues of $898 million, led by the strong performance of Xywav and Epidiolex," said Bruce Cozadd, chairman and CEO of Jazz Pharmaceuticals.

Xywav net product sales increased 9% YoY to $344.8 million, while Epidiolex/Epidyolex sales rose 10% to $217.7 million. However, Xyrem sales fell 42% to $37.2 million as patients transition to Xywav.

Jazz completed its acquisition of Chimerix (NASDAQ:CMRX) in April, adding the late-stage pipeline candidate dordaviprone for a rare brain tumor. The company expects top-line data from a key zanidatamab trial in gastric cancer in the second half of 2025.

https://www.investing.com/news/earnings/jazz-pharmaceuticals-misses-estimates-slashes-guidance-on-litigation-costs-93CH-4026607

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