Jazz Pharmaceuticals misses estimates, slashes guidance on litigation costs

Published 06/05/2025, 22:52
Jazz Pharmaceuticals misses estimates, slashes guidance on litigation costs

Investing.com -- 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.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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