DUBLIN, May 8, 2012/PRNewswire/ -- Jazz Pharmaceuticals plc (Nasdaq: JAZZ) today announced financial results for the first quarter of 2012. These results reflect the first quarter of combined financial results following completion of the merger with Azur Pharma plc on January 18, 2012 and include the activities of the historic Azur Pharma business since the date of the merger.
"Our first quarter results reflect a significant increase in net sales driven by the continued growth of Xyrem®, as well as our recent combination with Azur Pharma and the resulting expanded product portfolio that addresses significant patient needs," said Bruce Cozadd, chairman and chief executive officer of Jazz Pharmaceuticals. "We intend to continue to drive revenue and adjusted earnings growth by seeking to maximize the opportunities for our products, including the new products that we would acquire through the planned acquisition of EUSA Pharma Inc. announced late last month."
GAAP net income for the first quarter of 2012 was $27.7 million, or $0.48 per diluted share, compared to $21.8 million, or $0.48 per diluted share, for the first quarter of 2011. Adjusted net income for the first quarter of 2012 was $53.0 million, or $0.91 per diluted share, compared to $26.8 million, or $0.59 per diluted share, for the first quarter of 2011. GAAP net income per diluted share for the first quarter of 2012 reflects the company's new structure following the merger with Azur Pharma, including an increased number of fully diluted shares. Results for 2011 reflect only the financial results reported by Jazz Pharmaceuticals, Inc. A reconciliation of GAAP net income to adjusted net income and the related per diluted share amounts is included with this press release.
Revenues and Product Sales
Total revenues for the quarter ended March 31, 2012 were $108.4 million, including net sales, royalties and contract revenues.
Total net sales for the first quarter of 2012 increased to $107.3 million, driven by the significant growth in Xyrem (sodium oxybate) oral solution net sales as well as the addition of net sales from the expanded product portfolio resulting from the merger with Azur Pharma, including FazaClo® (clozapine USP) HD, FazaClo® LD, Prialt® (ziconotide intrathecal infusion) and the company's women's health and other products. First quarter 2012 net product sales for the expanded product portfolio reflect net sales only since the completion of the merger with Azur Pharma on January 18, 2012. Net sales for the first quarter of 2012 included:
- Xyrem: Net sales of Xyrem increased significantly to $73.4 million for the first quarter of 2012, compared to net sales of $42.8 million in the first quarter of 2011. During the first quarter of 2012, approximately 9,500 patients were on active therapy with Xyrem.
- Psychiatry Products: Net sales of the company's psychiatry products, including once-daily Luvox CR® (fluvoxamine maleate), FazaClo HD and FazaClo LD were $17.7 million for the first quarter of 2012. For the prior year period, net sales of psychiatry products included only sales of Luvox CR by Jazz Pharmaceuticals, Inc.
- Prialt: First quarter 2012 net sales of Prialt were $9.5 million, including net sales of approximately $4.6 million related to a supply agreement to provide Prialt to Eisai Co. for distribution and sale in Europe.
- Women's Health and Other: Net sales of women's health and other products for the first quarter of 2012 were $6.7 million.
Operating expenses of $75.2 million for the first quarter of 2012 increased compared to the prior year period primarily due to the following:
- Cost of product sales increased due to higher sales and included $2.4 million due to purchase accounting inventory step-up.
- Selling, general and administrative expenses increased primarily due to higher professional service fees and expenses of $9.9 million (including $6.1 million in transaction and integration expenses), an increase in salary and benefit expenses of $7.2 million, and other expenses related to the increase in the size of the organization resulting from the Azur Pharma merger and the company's increased commercial presence.
- The company's total headcount increased to approximately 430, with the addition of approximately 170 employees as a result of the Azur Pharma merger.
- Intangible asset amortization for the first quarter of 2012 included $11.7 million of amortization related to the expanded product portfolio resulting from the Azur Pharma merger.
In the first quarter of 2012, the company also recorded a provision for income taxes of $5.5 million.
2012 Financial Guidance
Jazz Pharmaceuticals is also providing the following updated financial guidance for 2012, which does not reflect the planned acquisition of EUSA Pharma:
$500 $510 million
Total Net Product Sales
$495 $505 million
-- Xyrem Net Sales
$350 $360 million
Total Gross Margin %
Combined SG&A and R&D expenses*
$205 $215 million
$27 $30 million
GAAP Net Income
$165 $177 million
GAAP Net Income Per Diluted Share
Adjusted Net Income
$255 $264 million
Adjusted Net Income Per Diluted Share**
* Includes stock-based compensation and transaction-related expenses, primarily related to the Azur Pharma merger.
** A reconciliation of GAAP net income to adjusted net income and the related per diluted share amounts is included with this press release.
Conference Call Details
Jazz Pharmaceuticals will host an investor conference call and live audio webcast today at 4:30 p.m. EDT (9:30 p.m. IST) to provide a business and financial update and discuss 2012 first quarter results and 2012 guidance. The live webcast may be accessed from the Investors section of the company's website at www.jazzpharmaceuticals.com. Please connect to the website prior to the start of the conference call to ensure adequate time for any software downloads that may be necessary. Investors may participate in the conference call by dialing 800-573-4842 in the U.S., or 617-224-4327 outside the U.S., and entering passcode 95197533.
An archived version of the webcast will be available for at least one week on the investors section of the Jazz Pharmaceuticals website at www.jazzpharmaceuticals.com.
About Jazz Pharmaceuticals
Jazz Pharmaceuticals plc is a specialty biopharmaceutical company focused on improving patients' lives by identifying, developing and commercializing products that address unmet medical needs. The company has a diverse portfolio of products in the areas of narcolepsy, severe chronic pain, psychiatry and women's health. The company's marketed products in these areas include: Xyrem® (sodium oxybate) oral solution, Prialt® (ziconotide intrathecal infusion), FazaClo® (clozapine USP) HD, FazaClo® LD, Luvox CR® (fluvoxamine maleate) and Elestrin® (estradiol gel 0.06%).