Latest news with #JazzPharmaceuticals'
Yahoo
20-05-2025
- Business
- Yahoo
JAZZ Q1 Earnings Call: Revenue and Profit Miss, Product Pipeline Drives Outlook
Biopharma company Jazz Pharmaceuticals (NASDAQ:JAZZ) fell short of the market's revenue expectations in Q1 CY2025, with sales flat year on year at $897.8 million. On the other hand, the company's outlook for the full year was close to analysts' estimates with revenue guided to $4.28 billion at the midpoint. Its non-GAAP profit of $1.68 per share was 63.9% below analysts' consensus estimates. Is now the time to buy JAZZ? Find out in our full research report (it's free). Revenue: $897.8 million vs analyst estimates of $986.6 million (flat year on year, 9% miss) Adjusted EPS: $1.68 vs analyst expectations of $4.66 (63.9% miss) Adjusted EBITDA: $206.5 million vs analyst estimates of $399.6 million (23% margin, 48.3% miss) The company reconfirmed its revenue guidance for the full year of $4.28 billion at the midpoint Management lowered its full-year Adjusted EPS guidance to $4.80 at the midpoint, a 79.4% decrease Operating Margin: -6.2%, down from 7.3% in the same quarter last year Free Cash Flow Margin: 46.3%, up from 28.9% in the same quarter last year Market Capitalization: $6.72 billion Jazz Pharmaceuticals' first quarter results reflected a flat revenue performance and significant shortfall on non-GAAP earnings relative to Wall Street expectations. Management attributed this outcome primarily to strong demand in the neuroscience portfolio, particularly Xywav and Epidiolex, which offset near-term headwinds in oncology products such as Rylaze and Zepzelca. CEO Bruce Cozadd highlighted execution on commercial efforts, stating the company remains 'confident in the blockbuster potential' of Epidiolex and is seeing 'continued momentum' for Xywav, especially in idiopathic hypersomnia. For the remainder of the year, management's guidance is anchored by anticipated regulatory milestones and commercial launches in oncology. The company's strategy includes leveraging recent acquisitions, such as Chimerix, to expand its rare oncology presence and prepare for upcoming product launches like Dordaviprone. Management also addressed ongoing litigation settlements and tariff risks, noting that inventory planning and flexible manufacturing are expected to minimize impacts for 2025. Jazz Pharmaceuticals' Q1 performance was shaped by mixed trends across its portfolio, with neuroscience products showing growth and oncology products experiencing headwinds. Several strategic actions—including a major acquisition and regulatory filings—also influenced the quarter's results and future positioning. Neuroscience Portfolio Growth: Xywav and Epidiolex led revenue growth, with Xywav patient additions driven by targeted disease education campaigns and Epidiolex benefiting from expanded use in adult and long-term care settings. Management emphasized Xywav's status as the only FDA-approved therapy for idiopathic hypersomnia, supporting market expansion. Oncology Pressure and Pipeline: The oncology portfolio saw declines, primarily due to protocol changes affecting Rylaze and competitive dynamics for Zepzelca. Management expects normalization of Rylaze revenue and highlighted upcoming data presentations for Zepzelca's first-line use, which could shift its growth trajectory if included in treatment guidelines. Chimerix Acquisition and Dordaviprone Launch: The acquisition of Chimerix added Dordaviprone, a therapy for rare brain tumors, to the pipeline. Management described Dordaviprone as a "meaningful and durable revenue opportunity" due to its potential frontline use and patent protection into 2037. Supply Chain and Tariff Preparedness: Jazz outlined its extensive manufacturing footprint in the U.S. and Europe, noting that diversified supply and inventory management should mitigate the impact of enacted and potential tariffs for the rest of the year. Strategic R&D Progress: Multiple regulatory milestones are on the horizon, including FDA and European reviews for new oncology indications. Upcoming data from pivotal trials in HER2-positive cancers and the anticipated launch of Dordaviprone are expected to be key product catalysts. Looking ahead, Jazz's guidance relies on continued neuroscience portfolio growth and the successful advancement of its oncology pipeline, while also navigating cost pressures and regulatory developments. Oncology Regulatory Milestones: Management believes that data readouts and regulatory decisions for products like Dordaviprone and zanidatamab will be critical to expanding the oncology business and supporting revenue growth. Neuroscience Market Expansion: The company expects further demand for Xywav, especially in idiopathic hypersomnia, to drive patient growth, while Epidiolex is positioned to achieve blockbuster status through expanded indications and access initiatives. Tariff and Litigation Risks: While management downplayed tariff impacts for 2025 due to inventory and manufacturing flexibility, future regulatory changes or litigation expenses remain uncertainties that could affect margins and adjusted earnings. Jason Gerberry (Bank of America): Asked about Xywav's supply chain resilience if tariffs escalate, with management confirming U.S. manufacturing capacity can supply the domestic market and minimize tariff risk. Jessica Fye (JP Morgan): Inquired about Jazz's overall manufacturing footprint and contingency plans for biopharma tariffs, with management highlighting geographic diversification and a strategy of building U.S. inventory. David Amsellem (Piper Sandler): Questioned the long-term outlook for Zepzelca in the face of new competition, with executives citing upcoming first-line data as potentially expanding its patient base and duration of therapy. Annabel Samimy (Stifel): Sought updates on Rylaze's adoption in adolescent and young adult segments, with management acknowledging slow but steady momentum and confidence in normalization by next quarter. Joseph Thome (TD Cowen): Asked about Dordaviprone's Phase III trial status and regulatory review, with Jazz noting ongoing enrollment outside the U.S. and no current issues with the FDA review timeline. In the coming quarters, the StockStory team will watch for (1) pivotal data releases for zanidatamab in HER2-positive gastroesophageal cancer, (2) the FDA's decision on Dordaviprone and progress in its confirmatory frontline trial, and (3) signs of sustained growth in Xywav and Epidiolex patient populations. Successful integration of Chimerix and the impact of evolving tariff policies will also be important to monitor as the year progresses. Jazz Pharmaceuticals currently trades at a forward P/E ratio of 4.7×. Should you load up, cash out, or stay put? See for yourself in our free research report. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. 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Yahoo
06-05-2025
- Business
- Yahoo
With A 14% Return On Equity, Is Jazz Pharmaceuticals plc (NASDAQ:JAZZ) A Quality Stock?
Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). By way of learning-by-doing, we'll look at ROE to gain a better understanding of Jazz Pharmaceuticals plc (NASDAQ:JAZZ). Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. Simply put, it is used to assess the profitability of a company in relation to its equity capital. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. How To Calculate Return On Equity? ROE can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Jazz Pharmaceuticals is: 14% = US$560m ÷ US$4.1b (Based on the trailing twelve months to December 2024). The 'return' is the income the business earned over the last year. Another way to think of that is that for every $1 worth of equity, the company was able to earn $0.14 in profit. Check out our latest analysis for Jazz Pharmaceuticals Does Jazz Pharmaceuticals Have A Good Return On Equity? Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification. If you look at the image below, you can see Jazz Pharmaceuticals has a lower ROE than the average (22%) in the Pharmaceuticals industry classification. NasdaqGS:JAZZ Return on Equity April 29th 2025 That's not what we like to see. That being said, a low ROE is not always a bad thing, especially if the company has low leverage as this still leaves room for improvement if the company were to take on more debt. A company with high debt levels and low ROE is a combination we like to avoid given the risk involved. To know the 3 risks we have identified for Jazz Pharmaceuticals visit our risks dashboard for free. How Does Debt Impact ROE? Companies usually need to invest money to grow their profits. That cash can come from issuing shares, retained earnings, or debt. In the first two cases, the ROE will capture this use of capital to grow. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking. Jazz Pharmaceuticals' Debt And Its 14% ROE It's worth noting the high use of debt by Jazz Pharmaceuticals, leading to its debt to equity ratio of 1.49. While its ROE is respectable, it is worth keeping in mind that there is usually a limit as to how much debt a company can use. Investors should think carefully about how a company might perform if it was unable to borrow so easily, because credit markets do change over time.
Yahoo
06-03-2025
- Health
- Yahoo
GLP-1 receptor agonists could hold promise for opioid use disorder treatment
Glucagon-like peptide-1 receptor agonists (GLP-1RAs), originally developed for treating diabetes, work by stimulating insulin secretion and suppressing glucagon release, thereby helping regulate blood sugar. However, these drugs also act on the brain's reward system, an area deeply involved in addiction. There are GLP-1 receptors in the brain's mesolimbic system, which is inextricably linked to motivation and reward. This has piqued the interest of drug developers looking to expand the label of their products to combat the opioid crisis. Early clinical work has shown that GLP-1RAs are a promising new avenue in the treatment of opioid use disorder (OUD), as the current treatment landscape is stifled by a lack of innovation and a heavy reliance upon opioid agonist therapies. A three-week Phase I study conducted at the Caron Treatment Centers in Pennsylvania, US, enrolled 20 participants undergoing residential treatment for OUD. The trial assessed Novo Nordisk's Saxenda as a monotherapy, displaying its potential to rival existing treatments, and the results have opened a realm of new treatment possibilities for OUD patients. Half of the patients received Saxenda while the other half were given a placebo, and all participants had the option to take buprenorphine, one of the main opioid agonist therapies on the market. The results showed a 40% reduction in opioid cravings among those taking Saxenda. This effect was evident even at the lowest dose. Another asset that has published trial outcomes is Jazz Pharmaceuticals' Epidyolex (cannabidiol). In a Phase II study evaluating Epidyolex's efficacy as an adjunct treatment to patients on opioid agonist therapy, it was suggested that cannabidiol is an effective and well-tolerated pharmacologic intervention as an adjunctive treatment to medication-assisted therapy (MAT) to reduce the risk of relapse. However, key opinion leaders (KOLs) interviewed by leading data and analytics company GlobalData have cast doubt over the use of a reduction in cravings as an outcome measure and have questioned how transferrable the measure is to the real world. This is because OUD is a relapsing-remitting disorder in which the natural tendency of an OUD patient is to use opioids. Furthermore, the use of addictive substances is inextricably tied to social context and environment, which are not easily replicated in a study. Thus, a reduction in cravings in a laboratory may not necessarily translate to the real world. In response, KOLs interviewed by GlobalData highlighted the need for clinical trials that are more reflective of real-world scenarios. This could include developing trials that measure a novel therapy's 'opioid-sparing' potential such as the ability of an asset to reduce the dose of opioid agonist that an OUD patient is currently taking. This means that expectations of GLP-1RAs must be managed until further data is obtained. The OUD treatment landscape is currently dominated by opioid agonist therapies that are highly regulated due to their liability for abuse. Out of the current treatment options for OUD, KOLs interviewed by GlobalData and surveyed prescribing physicians agreed that there is a gap in the market for safer non-opioid medications that treat addiction and withdrawal. KOLs questioned the safety profile of methadone, the current standard of care (SOC), and raised concerns about the illicit use of opioid medications, known as 'diversion'. The risk of diversion is not confined to methadone, and certain formulations of buprenorphine have naloxone (an opioid antagonist) added to their formulation in order to deter illicit use. According to GlobalData's Drug Database, six out of the seven agents currently in late-stage development (Phase IIb-III) are non-opioids. Despite their non-opioid mechanisms, KOLs are sceptical regarding the ability of these therapeutic candidates to replace first-line treatments. Currently, there is a lack of available efficacy data for many of the pipeline agents. Therefore, despite the presence of non-opioids in the pipeline, high-efficacy non-opioid OUD treatments remain an exploitable opportunity. There is a clear gap in the market for GLP-1RAs to occupy, and given the promising data in early clinical trials, they hold an advantage over many of the assets in the OUD pipeline. However, these results will have to be replicated in subsequent trials if GLP-1RAs are to cause a shift in the OUD treatment landscape. According to GlobalData's Drug Database, GLP-1RAs are also being investigated in other neurology indications such as to treat Alzheimer's disease and associated cognitive impairment, Parkinson's disease, alcohol dependence, peripheral neuropathy, and intracranial hypertension. Developers have recognised the potential of GLP-1RAs, and a new class of neurological agents is developing. The entry of GLP-1RAs into neurology is underway. As the understanding of the role of the GLP-1 receptors in the brain is developing, the treatment of OUD is the latest frontier to be tackled by this drug class. However, GLP-1RAs will have to demonstrate significantly improved efficacy in order to displace the gold standards of treatment, methadone and buprenorphine. Both methadone and buprenorphine are widely available in different formulations and are well-recognised by OUD patients. GlobalData expects that any non-opioid products developed for the treatment of OUD would likely see strong uptake and could potentially alter the OUD market landscape. "GLP-1 receptor agonists could hold promise for opioid use disorder treatment" was originally created and published by Pharmaceutical Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
05-03-2025
- Business
- Yahoo
Statutory Profit Doesn't Reflect How Good Jazz Pharmaceuticals' (NASDAQ:JAZZ) Earnings Are
Jazz Pharmaceuticals plc's (NASDAQ:JAZZ) strong earnings report was rewarded with a positive stock price move. Our analysis found some more factors that we think are good for shareholders. View our latest analysis for Jazz Pharmaceuticals One key financial ratio used to measure how well a company converts its profit to free cash flow (FCF) is the accrual ratio. The accrual ratio subtracts the FCF from the profit for a given period, and divides the result by the average operating assets of the company over that time. The ratio shows us how much a company's profit exceeds its FCF. Therefore, it's actually considered a good thing when a company has a negative accrual ratio, but a bad thing if its accrual ratio is positive. That is not intended to imply we should worry about a positive accrual ratio, but it's worth noting where the accrual ratio is rather high. Notably, there is some academic evidence that suggests that a high accrual ratio is a bad sign for near-term profits, generally speaking. For the year to December 2024, Jazz Pharmaceuticals had an accrual ratio of -0.10. That implies it has good cash conversion, and implies that its free cash flow solidly exceeded its profit last year. To wit, it produced free cash flow of US$1.3b during the period, dwarfing its reported profit of US$560.1m. Jazz Pharmaceuticals shareholders are no doubt pleased that free cash flow improved over the last twelve months. However, we can see that a recent tax benefit, along with unusual items, have impacted its statutory profit, and therefore its accrual ratio. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Jazz Pharmaceuticals' profit was reduced by unusual items worth US$145m in the last twelve months, and this helped it produce high cash conversion, as reflected by its unusual items. In a scenario where those unusual items included non-cash charges, we'd expect to see a strong accrual ratio, which is exactly what has happened in this case. It's never great to see unusual items costing the company profits, but on the upside, things might improve sooner rather than later. We looked at thousands of listed companies and found that unusual items are very often one-off in nature. And that's hardly a surprise given these line items are considered unusual. Assuming those unusual expenses don't come up again, we'd therefore expect Jazz Pharmaceuticals to produce a higher profit next year, all else being equal. In addition to the notable accrual ratio, we can see that Jazz Pharmaceuticals received a tax benefit of US$91m. It's always a bit noteworthy when a company is paid by the tax man, rather than paying the tax man. The receipt of a tax benefit is obviously a good thing, on its own. However, our data indicates that tax benefits can temporarily boost statutory profit in the year it is booked, but subsequently profit may fall back. In the likely event the tax benefit is not repeated, we'd expect to see its statutory profit levels drop, at least in the absence of strong growth. In conclusion, both Jazz Pharmaceuticals' accrual ratio and its unusual items suggest that its statutory earnings are probably reasonably conservative, but the presence of a tax benefits may be inflating the numbers in a way that won't persist. Looking at all these factors, we'd say that Jazz Pharmaceuticals' underlying earnings power is at least as good as the statutory numbers would make it seem. In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. While conducting our analysis, we found that Jazz Pharmaceuticals has 2 warning signs and it would be unwise to ignore these. After our examination into the nature of Jazz Pharmaceuticals' profit, we've come away optimistic for the company. But there is always more to discover if you are capable of focussing your mind on minutiae. Some people consider a high return on equity to be a good sign of a quality business. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
28-02-2025
- Business
- Yahoo
Jazz Pharmaceuticals plc Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year
It's been a good week for Jazz Pharmaceuticals plc (NASDAQ:JAZZ) shareholders, because the company has just released its latest yearly results, and the shares gained 4.8% to US$143. The result was positive overall - although revenues of US$4.1b were in line with what the analysts predicted, Jazz Pharmaceuticals surprised by delivering a statutory profit of US$8.65 per share, modestly greater than expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year. Check out our latest analysis for Jazz Pharmaceuticals Taking into account the latest results, the current consensus from Jazz Pharmaceuticals' 19 analysts is for revenues of US$4.30b in 2025. This would reflect a modest 5.7% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 2.5% to US$9.45. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$4.34b and earnings per share (EPS) of US$9.91 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year. It might be a surprise to learn that the consensus price target was broadly unchanged at US$188, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Jazz Pharmaceuticals at US$230 per share, while the most bearish prices it at US$145. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable. Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Jazz Pharmaceuticals' revenue growth is expected to slow, with the forecast 5.7% annualised growth rate until the end of 2025 being well below the historical 14% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 8.6% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Jazz Pharmaceuticals. The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$188, with the latest estimates not enough to have an impact on their price targets. Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Jazz Pharmaceuticals going out to 2027, and you can see them free on our platform here. It is also worth noting that we have found 2 warning signs for Jazz Pharmaceuticals that you need to take into consideration. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
