Jazz Pharmaceuticals: A Financial Overview in November

Revenue trends

Jazz Pharmaceuticals generated revenues of $469.4 million in the third quarter, which reflects ~14% YoY (year-over-year) growth. Jazz Pharmaceuticals’ net revenues over the first nine months of 2018 were $1.4 billion—compared to $1.2 billion in the same period in 2017, which reflects ~20% YoY growth.

Jazz Pharmaceuticals: A Financial Overview in November

Xyrem and Vyxeos mainly pushed the revenue growth in the third quarter.

Jazz Pharmaceuticals’ peers in the biopharmaceuticals market, Regeneron Pharmaceuticals (REGN), BioMarin Pharmaceutical (BMRN), and Vertex Pharmaceuticals (VRTX) generated revenues of $1.7 billion, $391.71 million, and $783.9 million, respectively, in the third quarter, which reflects ~10.85%, ~17.23%, and ~42.04% YoY growth.

Jazz Pharmaceuticals, BioMarin Pharmaceutical, Vertex Pharmaceuticals, and Regeneron Pharmaceuticals’ revenue growth could boost the iShares Nasdaq Biotechnology ETF’s (IBB) share prices. Jazz Pharmaceuticals, BioMarin Pharmaceutical, Vertex Pharmaceuticals, and Regeneron Pharmaceuticals account for ~1.19%, ~2.28%, ~4.33%, and 3.89% of IBB’s total portfolio holdings.

Expense trends

Jazz Pharmaceuticals reported a GAAP cost of product sales of $26.6 million in the third quarter—compared to $31.2 million in the third quarter of 2017. Jazz Pharmaceuticals reported a gross margin of 94.3% in the third quarter—compared to ~92.3% in the third quarter of 2017.

In the third quarter, Jazz Pharmaceuticals reported GAAP SG&A (selling, general, and administrative) and R&D (research and development) expenses of $155.9 million and $51.2 million, respectively—compared to $124.5 million and $47.4 million in the third quarter of 2017.

During the first nine months of 2018, Jazz Pharmaceuticals’ SG&A and R&D expenditure amounted to $521.7 million and $170.0 million, respectively. The company’s SG&A and R&D expenditure over the first nine months of 2017 was $401.1 million and $132.4 million, respectively.