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Kristin Bhavnani
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Jazz Pharmaceuticals plc

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Jazz Pharmaceuticals, Inc. Announces Second Quarter 2008 Financial Results

August 07, 2008
                  XYREM(R) Sales Reach Record $12.4 Million

PALO ALTO, Calif., Aug. 7 /PRNewswire-FirstCall/ -- Jazz Pharmaceuticals, Inc. (Nasdaq: JAZZ) today announced financial results for the quarter ended June 30, 2008.

Total revenues for the quarter ended June 30, 2008 were $15.5 million, compared to $14.3 million for the quarter ended June 30, 2007. XYREM(R) (sodium oxybate oral solution) net sales for the second quarter of 2008 increased 29 percent to $12.4 million, compared with $9.6 million for the second quarter of 2007.

The quarter ended June 30, 2008 also included the first net sales of LUVOX CR(R) (fluvoxamine maleate) Extended-Release Capsules, which was launched in April 2008. Net sales during the quarter were $0.7 million.

"The response from physicians and patients to this important new treatment option for obsessive compulsive disorder and social anxiety disorder has been very positive," said Robert Myers, President of Jazz Pharmaceuticals. "We are continuing to expand awareness of LUVOX CR and expect significant prescription growth in the second half of 2008."

Research and development expenses for the second quarter of 2008 were $21.9 million, compared to $17.4 million for the second quarter of 2007. The increase primarily reflected expenses associated with the clinical development of JZP-6 (sodium oxybate) for the treatment of fibromyalgia.

"We expect to report top-line data from the first of two Phase III clinical trials of JZP-6 in the fourth quarter of 2008, and to submit a New Drug Application to the U.S. Food and Drug Administration by the end of 2009," said Samuel Saks, M.D., Chief Executive Officer.

Selling, general and administrative expenses for the second quarter of 2008 were $34.1 million, compared to $18.2 million for the second quarter of 2007. The increase was primarily due to spending in connection with the launch of LUVOX CR, increased headcount and higher expenses to support the company's larger sales force.

Net loss for the second quarter of 2008 was $51.9 million, compared to $39.9 million in the second quarter of 2007.

During the quarter ended June 30, 2008, net cash used in operating activities was $44.6 million. Jazz Pharmaceuticals' cash, cash equivalents and marketable securities balance was $54.7 million as of June 30, 2008. Approximately $40 million in cash was raised through three transactions completed subsequent to June 30, 2008.

Recent Highlights

-- In June 2008, enrollment was closed with 550 subjects in the first of two Phase III clinical trials of JZP-6 in fibromyalgia. Top-line results for this trial are expected in the fourth quarter of 2008. Enrollment is more than 50 percent complete in the second Phase III clinical trial of JZP-6 at clinical sites in the U.S. and Europe.

-- On June 11, 2008, Jazz Pharmaceuticals announced a reduction in early-stage research and development activities, and delays in the timelines for two clinical development programs, in order to reduce its research and development expenses. The company implemented a workforce reduction of 33 employees to align the organization with its revised strategic goals.

-- On June 12, 2008, Harvey Moldofsky, M.D., University of Toronto, and Sarah Alvarez-Horine of Jazz Pharmaceuticals presented abstracts on "Disordered Sleep and Sleep-related Daytime Functioning in Fibromyalgia Syndrome (FMS)" and "Effects of Sodium Oxybate on Sleep Physiology and Sleep-related Symptoms in Fibromyalgia" at the EULAR (European League Against Rheumatism) meeting in Paris, France.

-- On July 21, 2008, Jazz Pharmaceuticals closed a registered direct offering of common stock and warrants with approximately $24.5 million in net proceeds.

-- On July 23, 2008, Jazz Pharmaceuticals and UCB Pharma Limited signed an amendment to the XYREM license and distribution agreement between the companies under which Jazz Pharmaceuticals received a $10.0 million payment from UCB.

-- On August 1, 2008, Jazz Pharmaceuticals divested its Antizol(R) and Antizol-Vet(R) products in a sale to Paladin Labs. Jazz Pharmaceuticals received a cash payment of approximately $5.5 million in connection with the sale, and is entitled to receive additional payments based on product sales during the next three years if sales of the products exceed certain levels.

Jazz Pharmaceuticals will host an investor conference call and live audio webcast to discuss its financial results and financial guidance and provide an update on its commercial and development activities on August 7, 2008 commencing at 5:00 p.m. Eastern Time/2:00 p.m. Pacific Time. The live webcast may be accessed on Jazz Pharmaceuticals' website at 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. An archived version of the webcast will be available through August 21, 2008. Investors may participate in the conference call by dialing 866-831-6270 in the U.S., or 617-213-8858 outside the U.S., and entering passcode 59360987. A replay of this call will be available until August 21, 2008 at 888-286-8010 or 617-801-6888 (international), using the passcode 27421347.

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

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995

This press release contains forward-looking statements, including, but not limited to, statements related to future sales of LUVOX CR, the continued development of Jazz Pharmaceuticals' JZP-6 product candidate for the treatment of fibromyalgia and the timing of the release of clinical results and submission of a New Drug Application to the U.S. Food and Drug Administration. These forward-looking statements are based on the company's current expectations and inherently involve significant risks and uncertainties. Jazz Pharmaceuticals' 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 related to the launch and sales of LUVOX CR; the development of Jazz Pharmaceuticals' JZP-6 product candidate, including the risk that clinical trial results may require Jazz Pharmaceuticals to discontinue the development of that product candidate; the need for additional funds; and manufacturing, regulatory requirements and competition. These and other risk factors are discussed under "Risk Factors" in Jazz Pharmaceuticals' prospectus supplement filed with the Securities and Exchange Commission under Rule 424(b)(5) on July 16, 2008. 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.
                     (In thousands, except per share amounts)

                                       Three Months Ended   Six Months Ended
                                            June 30,            June 30,
                                         2008      2007      2008      2007

       Product sales, net               $14,751   $13,615   $28,735   $25,240
       Royalties, net                       503       360       868       571
       Contract revenues                    285       289       569     2,541
         Total revenues                  15,539    14,264    30,172    28,352

     Operating expenses:
       Cost of product sales
       (excluding amortization
        of acquired developed
        technology)                       2,796     1,679     5,094     3,682
       Research and development          21,882    17,407    43,125    32,274
       Selling, general and
        administrative                   34,109    18,175    66,889    32,514
       Amortization of intangible assets  3,846     2,287     5,966     4,649
       Provision for government
        settlement                          -      17,469       -      17,469
         Total operating expenses        62,633    57,017   121,074    90,588

     Loss from operations               (47,094)  (42,753)  (90,902)  (62,236)

       Interest income                      450     1,300     1,347     2,391
       Interest expense                  (5,235)   (3,314)   (9,021)   (6,582)
       Other (expense) income, net           (1)    4,904       (13)    1,835
       Gain on sale of product rights       -         -         -       5,145
     Net loss                          $(51,880) $(39,863) $(98,589) $(59,447)

     Net loss per share, basic and
      diluted                            $(2.17)   $(5.27)   $(4.14)  $(15.59)

     Weighted-average common shares
      used in computing net loss
      per share, basic and diluted       23,858     7,561    23,800     3,813

                            JAZZ PHARMACEUTICALS, INC.
                          SUMMARY OF PRODUCT SALES, NET
                            (In thousands) (Unaudited)

                                        Three Months Ended   Six Months Ended
                                             June 30,             June 30,
                                          2008      2007      2008      2007
    Xyrem                               $12,405    $9,628   $23,746   $18,252
    Antizol                               1,632     3,987     4,275     6,623
    Luvox CR                                714       -         714       -
    Cystadane                               -         -         -         365
    Total                               $14,751   $13,615   $28,735   $25,240

                          JAZZ PHARMACEUTICALS, INC.
                          (In thousands) (Unaudited)

                                                   June 30,       December 31,
                                                     2008             2007
    Current assets:
      Cash and cash equivalents                    $51,202          $102,945
      Restricted cash                                1,998             1,939
      Marketable securities                          1,500               -
      Accounts receivable                            5,221             5,389
      Inventories                                    6,219             2,213
      Prepaid expenses                               3,680             3,224
      Other current assets                             376               381
        Total current assets                        70,196           116,091
    Property and equipment, net                      4,260             3,941
    Intangible assets, net                          71,074            36,040
    Goodwill                                        38,213            38,213
    Long-term restricted cash and investments          -              12,000
    Other long-term assets                           2,848             1,269
        Total assets                              $186,591          $207,554

    Current liabilities:
      Line of credit                                $6,099            $3,459
      Accounts payable                               8,522             2,856
      Accrued liabilities                           31,252            29,047
      Purchased product rights liability            21,000               -
      Deferred revenue                               3,430             1,494
        Total current liabilities                   70,303            36,856

    Non-current portion of deferred revenue         11,899            12,468
    Liability under government settlement           13,063            14,881
    Senior secured notes                           113,704            75,116

    Common stock subject to repurchase              13,241            13,241

    Stockholders' equity (deficit)                 (35,619)           54,992
    Total liabilities and
     stockholders' equity (deficit)               $186,591          $207,554

SOURCE  Jazz Pharmaceuticals, Inc.
    -0-                             08/07/2008
    /CONTACT:  Karen L. Bergman, +1-650-575-1509, or Michelle Corral,
+1-415-794-8662, both of BCC Partners for Jazz Pharmaceuticals, Inc.; or
Matthew Fust, Chief Financial Officer of Jazz Pharmaceuticals, Inc.,
+1-650-496-2800, /
    /Web site: /

CO:  Jazz Pharmaceuticals, Inc.
ST:  California

-- AQTH086 --
6545 08/07/2008 16:00 EDT