Jazz Pharma Posts Higher Y/Y Earnings - Analyst Blog
May 14 2013 - 5:02AM
Zacks
Jazz Pharmaceuticals plc’s (JAZZ) 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
quarter.
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 to
Eisai Co. Ltd. (ESALY). 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 2013.
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.
Pipeline Update
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 of
2013.
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 million.
Jazz Pharma carries a Zacks Rank #1 (Strong Buy). Other
companies like Santarus, Inc. (SNTS) and
Catalyst Pharmaceutical Partners Inc. (CPRX) look
equally attractive with a Zacks Rank #1 (Strong Buy).
CATALYST PHARMA (CPRX): Free Stock Analysis Report
EISAI CO LTD (ESALY): Get Free Report
JAZZ PHARMACEUT (JAZZ): Free Stock Analysis Report
SANTARUS INC (SNTS): Free Stock Analysis Report
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