In 1Q18, Jazz Pharmaceuticals (JAZZ) generated revenue of $444.6 million compared to $376.1 million in 1Q17, which reflected an ~18% rise on a YoY (year-over-year) basis and a ~2% rise quarter-over-quarter.
In 1Q18, Jazz Pharmaceuticals reported GAAP (generally accepted accounting principles) net income and EPS (earnings per share) of $46.0 million and $0.75, respectively, compared to $86.5 million and $1.41, respectively, in 1Q17.
In 1Q18, Jazz Pharmaceuticals reported adjusted net income and adjusted EPS of $182.4 million and $2.98, respectively, compared to $141.2 million and $2.31, respectively, in 1Q17.
Vyxeos and Xyrem primarily drove the company’s revenue growth in 1Q18. In 1Q18, Vyxeos witnessed growing demand from major academic institutions and community hospitals. Jazz Pharmaceuticals’ dedicated sales force for AML (acute myeloid leukemia) is focused on creating awareness among physicians on the overall survival benefits seen by newly diagnosed individuals with high-risk AML who receive Vyxeos.
Jazz Pharmaceuticals reported a gross margin of 92.7% in 1Q18 compared to 93.6% in 1Q17.
In 1Q18, Jazz Pharmaceuticals reported a cost of product sales of $33.9 million compared to $25.1 million in 1Q17.
In 1Q18, Jazz Pharmaceuticals reported SG&A (selling, general, and administrative) and R&D (research and development) expenses of $207.2 million and $62.7 million, respectively, compared to $144.3 million and $44.9 million, respectively, in 1Q17. In 1Q18, Jazz Pharmaceuticals’ SG&A and R&D expenses accounted for ~46.6% and ~14.1% of its total revenue, respectively.
The expansion of Jazz’s business, an increase in expenses arising from the launch of Vyxeos in Europe, and the launch of solriamfetol in the US market primarily contributed to the increase in the company’s SG&A expenditure in 1Q18.
Increased expenditure due to Jazz’s ongoing preclinical and clinical development programs and subsequent regulatory filings led to the rise in its R&D expenditure in 1Q18 compared to 1Q17.
Alexion Pharmaceuticals (ALXN), Vertex Pharmaceuticals (VRTX), and Shire (SHPG), Jazz Pharmaceuticals’ peers in the rare disease drugs market, reported revenues of $930.9 million, $638.9 million, and $3.8 billion, respectively, in 1Q18.