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Defitelio Continues to Demonstrate Robust Demand Trends in 2017

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Defitelio demand trends

On March 30, 2016, the U.S. Food and Drug Administration (or FDA) approved Jazz Pharmaceuticals’ (JAZZ) Defitelio for adult patients who are suffering from hepatic veno-occlusive disease (or VOD) in addition to kidney or lung abnormalities in the aftermath of hematopoietic stem cell transplantation (or HSCT). To know more about the market opportunity for Defitelio for the life-threatening liver condition, please refer to Defitelio: Volume and Pricing Challenges.

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In 2Q17, Defitelio’s global sales were close to $30 million, less than the $33 million reported in 2Q16. The drug also earned revenues close to $8 million in the US in 2Q17, lower than the $10 million revenues reported in 2Q16. The year-over-year (or YoY) drop in revenues is mainly attributed to inventory stocking by distributors and transplant institutions in 2Q16 as the drug was commercially launched in the US market in this quarter. At that time, the drug was already approved in the European Union for severe VOD patients above one month of age and undergoing HSCT therapy.

Jazz Pharmaceuticals expects Defitelio to report revenues in the range of $130 million to $150 million globally in 2017, while sales in the US are expected to fall in the range of $45 million to $55 million.

If Defitelio manages to surpass these revenue projections in 2017, it may have a positive impact on share prices of Jazz Pharmaceuticals as well as those of the SPDR S&P Pharmaceuticals ETF (XPH). Jazz Pharmaceuticals makes up about 4.1% of XPH’s total portfolio holdings.

Market penetration

Since its launch in the US, Defitelio has been ordered by 142 accounts, which together account for 85% of the hematopoietic stem cell transplantation procedures in the country. Besides reorders, the company also witnessed 11 new orders for the drug in 2Q17. Since its commercial launch in the US, around 85% of the accounts have placed repeat orders for Defitelio.

Defitelio has enabled Jazz Pharmaceuticals to compete effectively with other players in the treatment of post-HSCT complications such as AbbVie (ABBV), AstraZeneca (AZN), and Celgene (CELG).

In the next article, we’ll discuss efforts taken by Jazz Pharmaceuticals to extend the market reach of Defitelio in greater detail.

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