Jazz Pharmaceuticals, Inc. Announces Second Quarter 2007 Financial Results
PALO ALTO, Calif., Aug 09, 2007 /PRNewswire-FirstCall via COMTEX News Network/ -- Jazz Pharmaceuticals, Inc. (Nasdaq: JAZZ) today announced financial results for the quarter ended June 30, 2007.
Jazz Pharmaceuticals' net loss for the second quarter of 2007 was $39.9 million, compared to a net loss of $24.1 million for the second quarter of 2006. The net loss for the quarter ended June 30, 2007 includes other income of $4.9 million related to a decrease in the value of a preferred stock warrant liability and a charge of $17.5 million related to a previously announced settlement reached with the United States Department of Justice and other federal agencies.
Total revenues for the quarter ended June 30, 2007 were $14.3 million, compared to $11.1 million for the quarter ended June 30, 2006. The increase in total revenue resulted primarily from increased net sales of Xyrem(R) (sodium oxybate). For the quarter ended June 30, 2007, Xyrem achieved record net sales of $9.6 million. For the six months ended June 30, 2007, total revenues were $28.4 million, compared to $20.9 million for the six months ended June 30, 2006.
Research and development expenses for the quarter ended June 30, 2007 were $17.4 million, compared to $14.3 million for the quarter ended June 30, 2006. The increase was primarily due to increased spending on Phase III clinical development of JZP-6 for fibromyalgia syndrome, expenses in connection with the scale-up of commercial manufacturing for Luvox(R) CR (fluvoxamine maleate) extended-release capsules and increased headcount.
Selling, general and administrative expenses for the quarter ended June 30, 2007 were $18.2 million, compared to $13.7 million for the quarter ended June 30, 2006. The increase was primarily due to spending in preparation for the launch of Luvox CR, increased headcount, and higher expenses to support the sales force, offset in part by a reduction in legal fees.
Jazz Pharmaceuticals' unrestricted cash and cash equivalents balance as of June 30, 2007 was $148.0 million. During the quarter ended June 30, 2007, net cash used in operating activities was $16.7 million.
"We are very pleased with the continued success and growth of our commercial business," said Samuel R. Saks, M.D., Chief Executive Officer of Jazz Pharmaceuticals, Inc. "On the development side, our portfolio of product candidates continues to advance, in line with our company's mission to provide important new products for patients and caregivers."
- Jazz Pharmaceuticals priced its initial public offering of six million shares of its common stock and began trading on the Nasdaq Global Market under the trading symbol "JAZZ" on June 1, 2007. Net cash proceeds from the initial public offering were approximately $97.2 million, after deducting underwriting discounts and commissions and estimated offering expenses.
- In August, the U.S. Food and Drug Administration (FDA) accepted for review the submission of the complete response by Solvay Pharmaceuticals, Inc. to the FDA approvable letter for Luvox CR. The PDUFA action date is December 22, 2007.
- Jazz Pharmaceuticals achieved a clinical enrollment milestone in early August under our agreement with UCB Pharma Limited relating to JZP-6 for fibromyalgia syndrome, which triggers a $7.5 million payment to Jazz Pharmaceuticals.
- Jazz Pharmaceuticals' partner, Valeant Pharmaceuticals International, launched Xyrem in Canada on July 30, 2007. Valeant promotes Xyrem in Canada through its specialty sales force.
- Jazz Pharmaceuticals completed a pharmacokinetic study of JZP-2, a product candidate for the acute treatment of panic attacks associated with panic disorder. Based upon an initial analysis of the pharmacokinetic data generated by the study, management expects that this product formulation will likely be discontinued.
Jazz Pharmaceuticals will host an investor conference call and live audio webcast to discuss its quarterly results on August 9, 2007 at 5:00 p.m. Eastern Time/2:00 p.m. Pacific Time. The live webcast and press release may be accessed on Jazz Pharmaceuticals' website at http://www.JazzPharmaceuticals.com. Please connect to the website at least 15 minutes prior to the conference call to ensure adequate time for any software downloads that may be necessary. An archived version of the webcast will be available through August 23, 2007. Investors may participate in the conference call by dialing 1-800-299-0433 in the U.S., or 1-617-801-9712 outside the U.S., and entering passcode 23108551. A replay of this call will be available until August 23, 2007 at 1-888-286-8010 (U.S.), or 1-617-801-6888 (international), using the passcode 26350949.
About Jazz Pharmaceuticals, Inc.
Jazz Pharmaceuticals is a specialty pharmaceutical company focused on identifying, developing and commercializing innovative products to meet unmet medical needs in neurology and psychiatry. For further information see http://www.JazzPharmaceuticals.com.
"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995
Certain statements set forth above may constitute forward-looking statements about Jazz Pharmaceuticals' business, including, but not limited to, development and approval of its product candidates and future sales of its products and product candidates. These forward-looking statements inherently involve significant risks and uncertainties. For further information with respect to factors that could cause the results of Jazz Pharmaceuticals to differ materially from expectations, reference is made to the risks outlined under "Risk Factors," in the Form S-1 Registration Statement dated May 31, 2007 filed by Jazz Pharmaceuticals with the Securities and Exchange Commission, as well as Jazz Pharmaceuticals' Quarterly Report on Form 10-Q expected to be filed on or before August 14, 2007. Jazz Pharmaceuticals' actual results may differ materially from its expectations due to these risks and uncertainties. Jazz Pharmaceuticals undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events or changes in its expectations.
JAZZ PHARMACEUTICALS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2007 2006 2007 2006 Revenues: Product sales, net $13,615 $10,454 $25,240 $20,225 Royalties, net 360 120 571 186 Contract revenue 289 500 2,541 500 Total revenues 14,264 11,074 28,352 20,911 Operating expenses: Cost of product sales 1,679 1,754 3,682 3,323 Research and development 17,407 14,280 32,274 27,174 Selling, general and administrative 18,175 13,716 32,514 25,935 Amortization of intangible assets 2,287 2,400 4,649 4,800 Provision for government settlement 17,469 - 17,469 - Total operating expenses 57,017 32,150 90,588 61,232 Loss from operations (42,753) (21,076) (62,236) (40,321) Interest income 1,300 591 2,391 1,172 Interest expense (3,314) (3,769) (6,582) (7,546) Other income, net 4,904 120 1,835 182 Gain on sale of product rights - - 5,145 - Net loss (39,863) (24,134) (59,447) (46,513) Beneficial conversion feature - - - (3,501) Loss attributable to common stockholders $(39,863) $(24,134) $(59,447) $(50,014) Loss per share attributable to common stockholders, basic and diluted $(5.27) $(2,194.00) $(15.59) $(5,001.40) Weighted-average common shares used in computing loss per share attributable to common stockholders, basic and diluted 7,561 11 3,813 10 Non-GAAP net loss per share information (1): Loss attributable to common stockholders $(39,863) $(24,134) $(59,447) $(50,014) Weighted-average shares used in computing non-GAAP net loss per share 19,771 13,429 18,863 13,100 Non-GAAP net loss per share $(2.02) $(1.80) $(3.15) $(3.82) Reconciliation of GAAP loss per share attributable to common stockholders and non- GAAP net loss per share: GAAP loss per share attributable to common stockholders, basic and diluted $(5.27) $(2,194.00) $(15.59) $(5,001.40) Decrease due to items summarized below 3.25 2,192.20 12.44 4,997.58 Non-GAAP net loss per share $(2.02) $(1.80) $(3.15) $(3.82) GAAP weighted-average common shares outstanding 7,561 11 3,813 10 Increase in the weighted- average number of shares outstanding from treating preferred shares as if they converted into common shares at their date of issuance 12,210 13,418 15,050 13,090 Weighted-average shares used in computing non-GAAP net loss per share 19,771 13,429 18,863 13,100 (1) Non-GAAP net loss per share attributable to common stockholders and weighted-average shares used in computing non-GAAP loss per share attributable to common stockholders treats outstanding preferred shares as if they were converted into common shares at their date of issuance. Management believes that including non-GAAP net loss per share for periods prior to and including the Company's June 2007 initial public offering provides a useful and relevant measure for comparative year-over- year operating performance. Management does not believe the use of non-GAAP net loss per share lessens the importance of comparable GAAP measures. As of June 30, 2007, 24,550,554 shares of common stock were issued and outstanding. JAZZ PHARMACEUTICALS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) June 30, December 31, 2007 2006 ASSETS Current assets: Cash and cash equivalents $148,000 $78,948 Restricted cash 275 275 Accounts receivable, net 6,462 5,380 Inventories 3,216 3,026 Prepaid expenses 2,655 3,447 Other current assets 547 487 Total current assets 161,155 91,563 Property and equipment, net 3,025 2,107 Intangible assets 60,952 69,140 Goodwill 38,213 38,213 Long-term restricted cash and investments 12,085 12,000 Other long-term assets 1,440 1,548 Total assets $276,870 $214,571 LIABILITIES, CONVERTIBLE PREFERRED STOCK, AND STOCKHOLDERS' EQUITY (DEFICIT) Current liabilities: Line of credit $3,134 $2,191 Accounts payable 4,268 5,443 Accrued liabilities 22,198 12,943 Deferred revenue 2,027 1,422 Preferred stock warrant liability - 8,521 Total current liabilities 31,627 30,520 Deferred rent and other non-current liabilities 452 534 Deferred revenue, non-current 13,037 13,495 Liability under government settlement, non-current 14,881 - Senior secured notes 74,622 74,283 Convertible preferred stock - 263,852 Common stock subject to repurchase 13,174 8,183 Stockholders' equity (deficit): Common stock 2 - Additional paid-in capital 366,165 1,335 Accumulated other comprehensive income - 12 Accumulated deficit (237,090) (177,643) Total stockholders' equity (deficit) 129,075 (176,296) Total liabilities, convertible preferred stock and stockholders' equity (deficit) $276,870 $214,571 JAZZ PHARMACEUTICALS, INC. SUMMARY OF PRODUCT SALES, NET (In thousands) (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2007 2006 2007 2006 Xyrem $9,628 $7,202 $18,252 $13,355 Antizol 3,987 3,007 6,623 6,138 Cystadane (1) - 245 365 732 Total $13,615 $10,454 $25,240 $20,225 (1) Jazz Pharmaceuticals, Inc. sold its rights to Cystadane to an unrelated third party in March 2007.
SOURCE Jazz Pharmaceuticals, Inc.
Karen L. Bergman, +1-650-575-1509, or Michelle Corral, +1-415-794-8662, both of BCC Partners for Jazz Pharmaceuticals, Inc.; or Jim Karrels, Executive Director, Finance of Jazz Pharmaceuticals, Inc., +1-650-496-2800, firstname.lastname@example.org