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Jazz Pharmaceuticals JAZZ reported second-quarter 2025 adjusted loss of $8.25 per share, wider than the Zacks Consensus Estimate of a loss of $6.12. This downtick was primarily due to a one-time charge incurred by the company for the acquisition of clinical-stage biotech Chimerix, completed in April, which impacted the bottom line by $14.75 per share. In the year-ago period, the company reported adjusted earnings per share (EPS) of $5.25.
Total revenues rose 2% year over year to $1.05 billion, in line with the Zacks Consensus Estimate.
Net product sales increased 2% year over year to $986 million. The reported figure missed the Zacks Consensus Estimate of $999 million and our model estimate of $1 billion.
Jazz recorded $54 million in royalty revenues from high-sodium oxybate authorized generic (AG), relatively flat year over year. The metric beat both the Zacks Consensus Estimate of $49 million and our model estimate of $43 million.
Other royalties and contract revenues were $6 million, up 9% from the year-ago period levels.
Sales of Jazz’s neuroscience products rose 3% year over year to $707 million.
Net product sales for the combined oxybate business (Xyrem + Xywav) rose about 5% to $451 million. This combined figure beat the Zacks Consensus Estimate of $440 million and our model estimates of $432 million.
Sales of the sleep disorder drug Xyrem plunged 43% year over year to $35.3 million due to patients switching to Xywav and the launch of AGs in 2023.
Xywav, a low-sodium formulation of Xyrem, recorded sales of $415 million in the quarter, up 13%. This upside can be attributed to the encouraging uptake of the drug in narcolepsy and idiopathic hypersomnia indications. This drug is currently Jazz’s most extensive product by net sales.
Sales of the epilepsy drug Epidiolex/Epidyolex rose 2% to nearly $252 million, likely driven by geographic expansion in ex-U.S. markets. However, the reported figure missed the Zacks Consensus Estimate of $271 million and our model estimate of $279 million. The company attributed this underwhelming sales performance to several factors, including U.S. inventory dynamics.
Cannabis-based mouth spray Sativex recorded sales of about $5 million in the quarter, down 28% year over year.
Oncology product sales declined 1% to $274 million.
Chemotherapy drug Rylaze/Enrylaze posted sales of $101 million, which fell 7% year over year. While updates to the pediatric acute lymphoblastic leukemia protocols regarding the timing of asparaginase administration have been broadly adopted, overall class use remains below pre-protocol levels. This was primarily the reason that the metric missed both the Zacks Consensus Estimate and our model estimate of $105 million and $108 million, respectively. Jazz, however, noted that Rylaze demand is holding steady within the class.
Zepzelca, approved for small-cell lung cancer (SCLC), recorded sales worth $75 million, down 8% year over year. This downside was attributed to increased competition in second-line SCLC and treatment protocol updates delaying progression in first-line limited-stage SCLC patients to the second-line setting.
Acute myeloid leukemia drug Vyxeos generated sales of $45 million, up 4% from the year-ago period’s level. Defitelio sales rose 6% to $48 million.
Sales of Ziihera, which was approved by the FDA in December 2024 for the biliary tract cancer indication, added $6 million to the top line compared with $2 million in the previous quarter.
Adjusted selling, general and administrative expenses rose 2% year over year to $310 million, primarily due to higher employee expenses incurred during the quarter.
Adjusted research and development (R&D) expenses declined 18% to $167 million, mainly due to lower clinical program costs incurred during the quarter.
Jazz revised its financial guidance for the full year. It now expects total revenues in the range of $4.15-$4.30 billion, which reflects a $100 million decline from the upper end of the previous guidance of $4.15-$4.40 billion. The downgrade in guidance implies an increase of around 4% year over year at the midpoint.
Shares of Jazz were down more than 7% in after-market trading yesterday, likely due to the earnings guidance and wider-than-expected Q2 loss. This downward trend also continued in the pre-market today.
Year to date, the stock has lost 8% against the industry’s 2% growth.
Adjusted SG&A expenses are now anticipated to be between $1.45 billion and $1.50 billion, compared with the prior guidance of $1.47 billion to $1.53 billion. Jazz also lowered its forecasts for adjusted R&D expenses, now expected to be in the band of $730-$780 million (previously: $760-$810 million).
The effective tax rate is expected to be between 27% and 37% (previously: 35-45%)
The company expects 2025 adjusted earnings to be in the range of $4.80 to $5.60 per share, an increase of 80 cents at the lower end of the previous guidance of $4.00 to $5.60.
Jazz currently has a Zacks Rank #4 (Sell).
Jazz Pharmaceuticals PLC price | Jazz Pharmaceuticals PLC Quote
Some better-ranked stocks from the industry are CorMedix CRMD, Genmab GMAB and Immunocore IMCR, each carrying a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Estimates for CorMedix’s 2025 EPS have increased from 93 cents to 97 cents over the past 60 days, while the same for 2026 has increased from $1.64 to $1.65. CRMD shares have surged 49% year to date.
CorMedix’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 25.82%.
Estimates for Genmab’s 2025 EPS have increased from $1.51 to $1.58 over the past 60 days, while the same for 2026 has increased from $1.83 to $1.93. GMAB shares have gained 6% year to date.
Genmab’s earnings beat estimates in two of the trailing four quarters and missed the mark in the other two, delivering an average surprise of 14.90%.
In the past 60 days, estimates for Immunocore’s 2025 loss per share have improved from 86 cents to 68 cents. During the same timeframe, estimates for 2026 loss per share have narrowed from $1.34 to $1.10. IMCR stock has gained 10% so far this year.
Immunocore’s earnings beat estimates in three of the trailing four quarters and missed the mark once, delivering an average surprise of 76.18%.
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This article originally published on Zacks Investment Research (zacks.com).
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