Jazz Pharmaceuticals Announces First Quarter 2024 Financial Results and Affirms 2024 Financial Guidance
– 12% year-over-year revenue increase from combined key growth drivers: Xywav®, Epidiolex® and Rylaze® –
– Oncology revenues grew 13% year-over-year –
– Submitted zanidatamab BLA for 2L BTC; expect to launch in 2025 or earlier –
– Top-line Phase 2b data from suvecaltamide trial in essential tremor expected in late 1H24 –
– 2024 total revenue guidance affirmed at
"In the first quarter of 2024, we delivered combined double-digit year-over-year growth from our key growth drivers: Xywav, Epidiolex and Rylaze. We also significantly advanced our zanidatamab program with the completion of the BLA for 2L BTC," said
Key Highlights
- Key growth drivers:
- Xywav net product sales grew 14% year-over-year.
- Epidiolex/Epidyolex® net product sales grew 5% year-over-year.
- Rylaze/Enrylaze® net product sales grew 20% year-over-year.
- Zanidatamab:
- Completed the zanidatamab BLA submission seeking accelerated approval in 2L BTC.
- Updated data with longer follow-up, including overall survival (OS) findings, from the HERIZON-BTC-01 trial will be presented at ASCO Annual Meeting 2024.
- Plan to initiate Phase 3 EMPOWHER trial in late-line HER2+ breast cancer in 2H24.
- Multiple near-term, late-stage pipeline catalysts anticipated:
- Suvecaltamide top-line data from Phase 2b trial in ET in late 1H24.
- Top-line data from Epidyolex Phase 3 trial in
Japan in 2H24. - Top-line PFS data from zanidatamab in Phase 3 1L GEA targeted for late 2024.
- Top-line data from Zepzelca® 1L SCLC Phase 3 trial at the end of 2024 or early 2025.
- Affirmed 2024 total revenue guidance of
$4.0 to$4.2 billion .
Business Updates
Key Commercial Products
Xywav (calcium, magnesium, potassium, and sodium oxybates) oral solution:
- Xywav net product sales increased 14% to
$315.3 million in 1Q24 compared to the same period in 2023. - As the only low-sodium oxybate and the only therapy approved to treat idiopathic hypersomnia (IH), expect Xywav to remain the oxybate of choice.
- There were approximately 12,950 active Xywav patients exiting 1Q24, with 275 net patient adds in IH.
- Data presented at 2024 AAN Annual Meeting demonstrated the real-world impacts of Xywav:
- Results from the RHYTHM study demonstrated patients with IH experienced higher odds of comorbid conditions across multiple clinical categories, including cardiovascular conditions.
- A review of five clinical studies evaluating the impact of once- and twice-nightly oxybates on sleep quality, sleep architecture and measures of disrupted nighttime sleep in narcolepsy found oxybate was effective in improving these measures regardless of dosing.
Xywav for Narcolepsy:
- There were approximately 9,900 narcolepsy patients taking Xywav exiting 1Q24.
Xywav for Idiopathic Hypersomnia (IH):
- There were approximately 3,050 IH patients taking Xywav exiting 1Q24.
Xyrem® (sodium oxybate) oral solution:
- Xyrem net product sales decreased 64% to
$64.2 million in 1Q24 compared to the same period in 2023.
High-Sodium Oxybate Authorized Generic (AG) Royalties:
- Royalties from high-sodium oxybate AGs were
$49.9 million in 1Q24. - The Company expects high-sodium oxybate AG royalty revenue to exceed
$200 million in 2024.
Epidiolex/Epidyolex (cannabidiol):
- Epidiolex/Epidyolex net product sales increased 5% to
$198.7 million in 1Q24 compared to the same period in 2023. Epidiolex/Epidyolex growth was negatively affected by inventory drawdown in 1Q24. - Outside of the
U.S. , Epidyolex is approved in more than 35 countries with additional launches and reimbursements anticipated through the end of 2024. - Long-term and real-world data of treatment-resistant epilepsy were presented at 2024 AAN Annual Meeting:
- Data from a long-term Expanded Access Program study demonstrated Epidiolex was associated with a sustained reduction in treatment-resistant, focal-onset seizures through 144 weeks, with an acceptable safety profile.
- Updated interim results of seizure and non-seizure outcomes from the BECOME-TSC survey of caregivers of patients with tuberous sclerosis complex (TSC) reported improvements in seizure frequency and severity and in cognition, language and communication in patients.
Rylaze/Enrylaze (asparaginase erwinia chrysanthemi (recombinant)-rywn):
- Rylaze/Enrylaze net product sales increased 20% to
$102 .8 million in 1Q24 compared to the same period in 2023.
Zepzelca (lurbinectedin):
- Zepzelca net product sales increased 12% to
$75.1 million in 1Q24 compared to the same period in 2023. - Enrollment in the Phase 3 trial evaluating first-line (1L) use of Zepzelca in combination with Tecentriq® (atezolizumab) in small cell lung cancer, in partnership with Roche, was completed in 1Q24; expect top-line progression-free survival (PFS) data readout at the end of 2024 or early 2025.
Key Pipeline Highlights
Zanidatamab:
- Completed the zanidatamab biologics license application (BLA) seeking accelerated approval from the
U.S. FDA for second-line (2L) biliary tract cancer (BTC). If approved, zanidatamab would be the first HER2-targeted treatment specifically approved for BTC in theU.S. - The Company's plans to submit a marketing authorization application (MAA) to the
European Medicines Agency (EMA) are proceeding. - Updated data with longer follow-up, including OS findings, from the HERIZON-BTC-01 trial will be presented at the ASCO Annual Meeting 2024.
- A confirmatory trial in 1L metastatic BTC is ongoing.
- The pivotal HERIZON-GEA-01 trial, evaluating zanidatamab in 1L gastroesophageal adenocarcinoma (GEA), is ongoing and the Company is targeting top-line PFS data in late 2024.
- The Company plans to initiate a Phase 3 trial, EMPOWHER, in the second half of 2024 to evaluate zanidatamab plus chemotherapy or trastuzumab plus chemotherapy in patients with HER2-positive breast cancer whose disease has progressed on previous T-DXd treatment.
Suvecaltamide (JZP385):
- Enrollment was completed in the Phase 2b essential tremor (ET) trial in 1Q24; top-line data readout is anticipated late 1H24.
- A Phase 2 trial in patients with Parkinson's disease tremor is ongoing.
Financial Highlights
|
Three Months Ended |
|||
|
(In thousands, except per share amounts) |
2024 |
2023 |
|
|
Total revenues |
$ 901,983 |
$ 892,812 |
|
|
GAAP net income (loss) |
$ (14,618) |
$ 69,420 |
|
|
Non-GAAP adjusted net income |
$ 182,215 |
$ 285,261 |
|
|
GAAP earnings (loss) per share |
$ (0.23) |
$ 1.04 |
|
|
Non-GAAP adjusted EPS |
$ 2.68 |
$ 3.95 |
|
GAAP net loss for 1Q24 was $(14.6) million, or
Non-GAAP adjusted net income for 1Q24 was
Reconciliations of applicable GAAP reported to non-GAAP adjusted information are included at the end of this press release.
Total Revenues
|
Three Months Ended |
|||
|
(In thousands) |
2024 |
2023 |
|
|
Xywav |
$ 315,300 |
$ 277,761 |
|
|
Xyrem |
64,232 |
178,130 |
|
|
Epidiolex/Epidyolex |
198,716 |
188,909 |
|
|
Sativex |
2,735 |
7,098 |
|
|
Total Neuroscience |
580,983 |
651,898 |
|
|
Rylaze/Enrylaze |
102,750 |
85,927 |
|
|
Zepzelca |
75,100 |
67,181 |
|
|
Defitelio/defibrotide |
47,676 |
39,079 |
|
|
Vyxeos |
32,023 |
36,700 |
|
|
Total Oncology |
257,549 |
228,887 |
|
|
Other |
3,570 |
3,434 |
|
|
Product sales, net |
842,102 |
884,219 |
|
|
High-sodium oxybate AG royalty revenue |
49,947 |
2,096 |
|
|
Other royalty and contract revenues |
9,934 |
6,497 |
|
|
Total revenues |
$ 901,983 |
$ 892,812 |
|
Total revenues increased 1% in 1Q24 compared to the same period in 2023, driven by higher Oncology product sales of 13%, primarily due to continued growth in Rylaze/Enrylaze, which increased 20% to
Operating Expenses and Effective Tax Rate
|
Three Months Ended |
|||
|
(In thousands, except percentages) |
2024 |
2023 |
|
|
GAAP: |
|||
|
Cost of product sales |
$ 95,487 |
$ 128,644 |
|
|
Gross margin |
88.7 % |
85.5 % |
|
|
Selling, general and administrative |
$ 351,712 |
$ 297,917 |
|
|
% of total revenues |
39.0 % |
33.4 % |
|
|
Research and development |
$ 222,847 |
$ 189,410 |
|
|
% of total revenues |
24.7 % |
21.2 % |
|
|
Acquired in-process research and development |
$ 10,000 |
$ 1,000 |
|
|
Income tax expense (benefit)1 |
$ 11,669 |
$ (15,324) |
|
|
Effective tax rate 1 |
(728.4) % |
(27.8) % |
|
|
_________________________ |
|
|
1. |
The GAAP income tax expense for 1Q24 primarily related to tax shortfalls from share-based compensation. The GAAP income tax benefit for 1Q23 related primarily to taxes arising on pre-tax income and losses across tax jurisdictions and deductions on subsidiary equity. |
|
Three Months Ended |
|||
|
(In thousands, except percentages) |
2024 |
2023 |
|
|
Non-GAAP adjusted: |
|||
|
Cost of product sales |
$ 64,148 |
$ 64,728 |
|
|
Gross margin |
92.4 % |
92.7 % |
|
|
Selling, general and administrative |
$ 311,499 |
$ 260,515 |
|
|
% of total revenues |
34.5 % |
29.2 % |
|
|
Research and development |
$ 204,015 |
$ 173,918 |
|
|
% of total revenues |
22.6 % |
19.5 % |
|
|
Acquired in-process research and development |
$ 10,000 |
$ 1,000 |
|
|
Income tax expense |
$ 65,796 |
$ 40,197 |
|
|
Effective tax rate1 |
26.4 % |
12.3 % |
|
|
_________________________ |
|
|
1. |
The non-GAAP effective tax rate increased in 1Q24 compared to the same period in 2023, primarily due to the mix of pre-tax income and losses incurred across tax jurisdictions. |
Changes in operating expenses in 1Q24 over the prior year period are primarily due to the following:
- Cost of product sales, on a GAAP basis, decreased in 1Q24 compared to the same period in 2023, primarily due to lower acquisition accounting inventory fair value step-up expense. Cost of product sales, on a non-GAAP adjusted basis, in 1Q24 was in line with the same period in 2023.
- Selling, general and administrative (SG&A) expenses increased in 1Q24 compared to the same period in 2023, on a GAAP and on a non-GAAP adjusted basis, primarily due to increased compensation-related expenses driven by higher headcount in support of our key growth drivers, investment in our priority programs and litigation costs.
- Research and development (R&D) expenses increased in 1Q24 compared to the same period in 2023, on a GAAP and on a non-GAAP adjusted basis, primarily due to higher costs related to zanidatamab, as well as our other key pipeline programs, and an increase in compensation-related expenses driven by higher headcount in support of our development programs.
- Acquired in-process research and development (IPR&D) expense in 1Q24, on a GAAP and on a non-GAAP adjusted basis, related to an upfront payment made in connection with our asset purchase and collaboration agreement with Redx Pharma plc.
Cash Flow and Balance Sheet
As of
2024 Financial Guidance
The Company is affirming its full year 2024 financial guidance as follows:
|
(In millions) |
Guidance |
||
|
Revenues |
|
||
|
–Neuroscience (includes royalties from high-sodium oxybate AG) |
|
||
|
–Oncology |
|
||
|
(In millions, except per share amounts and percentages) |
GAAP |
Non-GAAP |
|
|
Gross margin % |
89 % |
93%1,6 |
|
|
SG&A expenses |
|
|
|
|
SG&A expenses as % of total revenues |
32% - 36% |
28% - 31% |
|
|
R&D expenses |
|
|
|
|
R&D expenses as % of total revenues |
21% - 23% |
19% - 21% |
|
|
Effective tax rate |
(22)% - (3)% |
10% - 13%4,6 |
|
|
Net income |
|
|
|
|
Net income per diluted share5 |
|
|
|
|
Weighted-average ordinary shares used in per share calculations5 |
71 |
71 |
|
|
___________________________ |
|
|
1. |
Excludes |
|
2. |
Excludes |
|
3. |
Excludes |
|
4. |
Excludes 32%-16% from the GAAP effective tax rate of (22)%-(3)% relating to the income tax effect of adjustments between GAAP net income and non-GAAP adjusted net income, resulting in a non-GAAP adjusted effective tax rate of 10%-13%. |
|
5. |
Diluted EPS calculations for 2024 include an estimated 6.4 million shares related to the assumed conversion of the 2.00% exchangeable senior notes due 2026, or the 2026 Notes, and the associated interest expense, net of tax, add-back to net income of $20 million and $18 million, on a GAAP and on a non-GAAP adjusted basis, respectively, under the "if converted" method. |
|
6. |
See "Non-GAAP Financial Measures" below. Reconciliations of non-GAAP adjusted guidance measures are included above and in the table titled "Reconciliation of GAAP to non-GAAP Adjusted 2024 Net Income Guidance" at the end of this press release. |
Conference Call Details
Audio webcast/conference call:
Ireland Dial-In Number: +353 1800 943 926
Additional global dial-in numbers are available here.
Passcode: 8991966
Interested parties may access the live audio webcast via the Investors section of the
A replay of the webcast will be available via the Investors section of the
About Jazz Pharmaceuticals
Non-GAAP Financial Measures
To supplement
The Company believes that each of these non-GAAP financial measures provides useful supplementary information to, and facilitates additional analysis by, investors and analysts and that each of these non-GAAP financial measures, when considered together with the Company's financial information prepared in accordance with GAAP, can enhance investors' and analysts' ability to meaningfully compare the Company's results from period to period, to its forward-looking guidance, and to identify operating trends in the Company's business. In addition, these non-GAAP financial measures are regularly used by investors and analysts to model and track the Company's financial performance.
Caution Concerning Forward-Looking Statements
This press release contains forward-looking statements, including, but not limited to, statements related to: the Company's growth prospects and future financial and operating results, including the Company's 2024 financial guidance and the Company's expectations related thereto and anticipated catalysts; expectations that Xywav will remain the oxybate of choice; expectations of high-sodium oxybate AG royalty revenue in 2024; the future growth and durability of revenues; the Company's advancement of pipeline programs and the timing of development activities, regulatory activities and submissions related thereto; planned or anticipated clinical trial events, including with respect to initiations, enrollment and data read-outs, and the anticipated timing thereof, including expectations of a potential launch of zanidatamab in 2L BTC in 2025 or earlier, top line data from a Phase 2b trial of suvecaltamide in ET, initiating a Phase 3 trial of zanidatamab plus chemotherapy or trastuzumab plus chemotherapy in patients with HER2-positive breast cancer whose disease has progressed on previous T-DXd treatment, top line PFS data from a Phase 3 trial of zanidatamab in 1L GEA, top line data from a Phase 3 trial of Epidyolex in DS, LGS and TSC in
Actual results and the timing of events could differ materially from those anticipated in such forward- looking statements as a result of these risks and uncertainties, which include, without limitation, risks and uncertainties associated with: maintaining or increasing sales of, and revenue from, Xywav, Rylaze and Epidiolex/Epidyolex and other marketed products; the introduction of new products into the U.S. market that compete with, or otherwise disrupt the market for the Company's products and product candidates; effectively launching and commercializing the Company's other products and product candidates; the successful completion of development and regulatory activities with respect to the Company's product candidates, obtaining and maintaining adequate coverage and reimbursement for the Company's products; the time-consuming and uncertain regulatory approval process, including the risk that the Company's current and/or planned regulatory submissions may not be submitted, accepted or approved by applicable regulatory authorities in a timely manner or at all; the costly and time-consuming pharmaceutical product development and the uncertainty of clinical success, including risks related to failure or delays in successfully initiating or completing clinical trials and assessing patients; global economic, financial, and healthcare system disruptions and the current and potential future negative impacts to the Company's business operations and financial results; geopolitical events, including the conflict between
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (In thousands, except per share amounts) (Unaudited) |
|||
|
Three Months Ended |
|||
|
2024 |
2023 |
||
|
Revenues: |
|||
|
Product sales, net |
$ 842,102 |
$ 884,219 |
|
|
Royalties and contract revenues |
59,881 |
8,593 |
|
|
Total revenues |
901,983 |
892,812 |
|
|
Operating expenses: |
|||
|
Cost of product sales (excluding amortization of acquired developed technologies) |
95,487 |
128,644 |
|
|
Selling, general and administrative |
351,712 |
297,917 |
|
|
Research and development |
222,847 |
189,410 |
|
|
Intangible asset amortization |
155,730 |
149,786 |
|
|
Acquired in-process research and development |
10,000 |
1,000 |
|
|
Total operating expenses |
835,776 |
766,757 |
|
|
Income from operations |
66,207 |
126,055 |
|
|
Interest expense, net |
(66,116) |
(74,147) |
|
|
Foreign exchange gain (loss) |
(1,693) |
3,193 |
|
|
Income (loss) before income tax expense (benefit) and equity in loss of investees |
(1,602) |
55,101 |
|
|
Income tax expense (benefit) |
11,669 |
(15,324) |
|
|
Equity in loss of investees |
1,347 |
1,005 |
|
|
Net income (loss) |
$ (14,618) |
$ 69,420 |
|
|
Net income (loss) per ordinary share: |
|||
|
Basic |
$ (0.23) |
$ 1.09 |
|
|
Diluted |
$ (0.23) |
$ 1.04 |
|
|
Weighted-average ordinary shares used in per share calculations - basic |
62,537 |
63,494 |
|
|
Weighted-average ordinary shares used in per share calculations - diluted |
62,537 |
73,771 |
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) |
|||
|
|
|
||
|
ASSETS |
|||
|
Current assets: |
|||
|
Cash and cash equivalents |
$ 1,443,385 |
$ 1,506,310 |
|
|
Investments |
375,000 |
120,000 |
|
|
Accounts receivable, net of allowances |
707,095 |
705,794 |
|
|
Inventories |
577,321 |
597,039 |
|
|
Prepaid expenses |
122,562 |
185,476 |
|
|
Other current assets |
314,535 |
320,809 |
|
|
Total current assets |
3,539,898 |
3,435,428 |
|
|
Property, plant and equipment, net |
166,236 |
169,646 |
|
|
Operating lease assets |
61,637 |
65,340 |
|
|
Intangible assets, net |
5,235,496 |
5,418,039 |
|
|
|
1,739,495 |
1,753,130 |
|
|
Deferred tax assets, net |
507,749 |
477,834 |
|
|
Deferred financing costs |
5,784 |
6,478 |
|
|
Other non-current assets |
70,780 |
67,464 |
|
|
Total assets |
$ 11,327,075 |
$ 11,393,359 |
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||
|
Current liabilities: |
|||
|
Accounts payable |
$ 80,976 |
$ 102,750 |
|
|
Accrued liabilities |
826,530 |
793,914 |
|
|
Current portion of long-term debt |
605,375 |
604,954 |
|
|
Income taxes payable |
49,325 |
35,074 |
|
|
Total current liabilities |
1,562,206 |
1,536,692 |
|
|
Long-term debt, less current portion |
5,105,111 |
5,107,988 |
|
|
Operating lease liabilities, less current portion |
56,158 |
59,225 |
|
|
Deferred tax liabilities, net |
809,714 |
847,706 |
|
|
Other non-current liabilities |
97,425 |
104,751 |
|
|
Total shareholders' equity |
3,696,461 |
3,736,997 |
|
|
Total liabilities and shareholders' equity |
$ 11,327,075 |
$ 11,393,359 |
|
|
SUMMARY OF CASH FLOWS (In thousands) (Unaudited) |
|||
|
Three Months Ended |
|||
|
2024 |
2023 |
||
|
Net cash provided by operating activities |
$ 267,229 |
$ 320,708 |
|
|
Net cash used in investing activities |
(271,904) |
(4,822) |
|
|
Net cash used in financing activities |
(56,552) |
(29,788) |
|
|
Effect of exchange rates on cash and cash equivalents |
(1,698) |
331 |
|
|
Net increase (decrease) in cash and cash equivalents |
$ (62,925) |
$ 286,429 |
|
|
RECONCILIATIONS OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION (In thousands, except per share amounts) (Unaudited) |
|||||||
|
Three Months Ended |
|||||||
|
2024 |
2023 |
||||||
|
Net Income |
Diluted |
Net |
Diluted |
||||
|
GAAP reported |
$ (14,618) |
$ (0.23) |
$ 69,420 |
$ 1.04 |
|||
|
Intangible asset amortization |
155,730 |
2.23 |
149,786 |
2.03 |
|||
|
Share-based compensation expense |
61,441 |
0.88 |
56,352 |
0.76 |
|||
|
Acquisition accounting inventory fair value step-up |
28,943 |
0.41 |
60,458 |
0.82 |
|||
|
Non-cash interest expense2 |
4,846 |
0.07 |
4,766 |
0.06 |
|||
|
Income tax effect of above adjustments |
(54,127) |
(0.76) |
(55,521) |
(0.75) |
|||
|
Effect of assumed conversion of Exchangeable Senior Notes1 |
— |
0.08 |
— |
(0.01) |
|||
|
Non-GAAP adjusted |
$ 182,215 |
$ 2.68 |
$ 285,261 |
$ 3.95 |
|||
|
Weighted-average ordinary shares used in diluted per share calculations - GAAP1 |
62,537 |
73,771 |
|||||
|
Dilutive effect of Exchangeable Senior Notes1 |
6,418 |
— |
|||||
|
Dilutive effect of employee equity incentive and purchase plans |
788 |
— |
|||||
|
Weighted-average ordinary shares used in diluted per share calculations - non-GAAP1 |
69,743 |
73,771 |
|||||
|
________________________________________________ |
|
|
Explanation of Adjustments and Certain Line Items: |
|
|
1. |
Diluted EPS/(LPS) was calculated using the "if-converted" method in relation to the 1.50% exchangeable senior notes due 2024, or the 2024 Notes, and the 2026 Notes, which we refer to collectively as the Exchangeable Senior Notes. In |
|
2. |
Non-cash interest expense associated with debt issuance costs. |
|
RECONCILIATIONS OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION CERTAIN LINE ITEMS - FOR THE THREE MONTHS ENDED (In thousands, except percentages) (Unaudited) |
|||||||||||||||||
|
Three months ended |
|||||||||||||||||
|
Cost of |
Gross |
Selling, |
Research |
Intangible |
Acquired |
Interest |
Income |
Effective |
|||||||||
|
GAAP Reported |
|
88.7 % |
$ 351,712 |
$ 222,847 |
$ 155,730 |
|
|
|
(728.4) % |
||||||||
|
Non-GAAP Adjustments: |
|||||||||||||||||
|
Intangible asset amortization |
— |
— |
— |
— |
(155,730) |
— |
— |
— |
— |
||||||||
|
Share-based compensation expense |
(2,396) |
0.3 |
(40,213) |
(18,832) |
— |
— |
— |
— |
— |
||||||||
|
Acquisition accounting inventory fair value |
(28,943) |
3.4 |
— |
— |
— |
— |
— |
— |
— |
||||||||
|
Non-cash interest expense |
— |
— |
— |
— |
— |
— |
(4,846) |
— |
— |
||||||||
|
Income tax effect of above adjustments |
— |
— |
— |
— |
— |
— |
— |
54,127 |
754.8 |
||||||||
|
Total of non-GAAP adjustments |
(31,339) |
3.7 |
(40,213) |
(18,832) |
(155,730) |
— |
(4,846) |
54,127 |
754.8 |
||||||||
|
Non-GAAP Adjusted |
|
92.4 % |
$ 311,499 |
$ 204,015 |
$ — |
|
|
|
26.4 % |
||||||||
|
Three months ended |
|||||||||||||||||
|
Cost of product sales |
Gross margin |
Selling, general and administrative |
Research and development |
Intangible asset amortization |
Acquired IPR&D |
Interest expense, net |
Income tax expense (benefit) |
Effective tax rate(1) |
|||||||||
|
GAAP Reported |
|
85.5 % |
$ 297,917 |
$ 189,410 |
|
$ 1,000 |
$ 74,147 |
|
(27.8) % |
||||||||
|
Non-GAAP Adjustments: |
|||||||||||||||||
|
Intangible asset amortization |
— |
— |
— |
— |
(149,786) |
— |
— |
— |
— |
||||||||
|
Share-based compensation expense |
(3,458) |
0.4 |
(37,402) |
(15,492) |
— |
— |
— |
— |
— |
||||||||
|
Non-cash interest expense |
— |
— |
— |
— |
— |
— |
(4,766) |
— |
— |
||||||||
|
Acquisition accounting inventory fair value |
(60,458) |
6.8 |
— |
— |
— |
— |
— |
— |
— |
||||||||
|
Income tax effect of above adjustments |
— |
— |
— |
— |
— |
— |
— |
55,521 |
40.1 |
||||||||
|
Total of non-GAAP adjustments |
(63,916) |
7.2 |
(37,402) |
(15,492) |
(149,786) |
— |
(4,766) |
55,521 |
40.1 |
||||||||
|
Non-GAAP Adjusted |
$ 64,728 |
92.7 % |
$ 260,515 |
$ 173,918 |
$ — |
$ 1,000 |
$ 69,381 |
$ 40,197 |
12.3 % |
||||||||
|
__________________________ |
|
|
(1) |
The GAAP effective tax rate for 1Q24 was derived from the income tax expense which arose primarily from tax shortfalls from share-based compensation. The GAAP effective tax rate for 1Q23 was derived from the income tax benefit which arose as a result of taxes arising on pre-tax income and losses across tax jurisdictions and deductions on subsidiary equity. |
|
RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED 2024 NET INCOME AND DILUTED EPS GUIDANCE (In millions, except per share amounts) (Unaudited) |
|||
|
Net Income |
Diluted EPS |
||
|
GAAP guidance |
|
|
|
|
Intangible asset amortization |
605 - 645 |
8.55 - 9.15 |
|
|
Acquisition accounting inventory fair value step-up |
125 - 145 |
1.75 - 2.05 |
|
|
Share-based compensation expense |
270 - 300 |
3.80 - 4.25 |
|
|
Non-cash interest expense |
20 - 30 |
0.30 - 0.40 |
|
|
Income tax effect of above adjustments |
(205) - (225) |
(2.90) - (3.20) |
|
|
Effect of assumed conversion of 2026 Notes |
- |
(0.05) |
|
|
Non-GAAP guidance |
|
|
|
|
Weighted-average ordinary shares used in per share calculations - GAAP and non-GAAP |
71 |
||
Contacts:
Investors:
Vice President, Head, Investor Relations
InvestorInfo@jazzpharma.com
Media:
Head of
CorporateAffairsMediaInfo@jazzpharma.com
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