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Jazz Pharmaceuticals plc (JAZZ)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 delivered record revenue and strong EPS: total revenue $1,088.2M (+8% YoY), GAAP EPS $3.11 (+119% YoY), non-GAAP EPS $6.60 (+31% YoY); full-year 2024 revenue reached $4,069.0M (+6% YoY) .
  • Growth was driven by Xywav (+19% YoY in Q4 to $401.0M) and Epidiolex (+14% YoY in Q4 to $275.0M), with oncology up 7% YoY in Q4; high-sodium oxybate AG royalties were $55.3M in Q4 .
  • 2025 guidance implies continued top- and bottom-line growth: revenue $4.15–$4.40B (midpoint +5% YoY), non-GAAP EPS $22.50–$24.00; company will stop adjusting non-GAAP for non-cash interest starting in 2025 .
  • Key catalysts: Zepzelca sNDA filing for 1L ES-SCLC in 1H25, HERIZON-GEA-01 PFS readout pushed to 2H25, and early launch of Ziihera in 2L BTC; management reiterated Ziihera’s “$2B+” peak sales potential longer term .

What Went Well and What Went Wrong

  • What Went Well

    • Neuroscience strength: Xywav net sales +19% YoY in Q4 to $401.0M with ~525 net patient adds, finishing the year with ~14,150 active patients (10,250 narcolepsy; 3,900 IH) .
    • Epidiolex momentum: Q4 net sales +14% YoY to $275.0M; management “remain[s] confident” in achieving blockbuster status in 2025; settled with all 10 ANDA filers enabling “very late 2030s” timing for generic entry under settlements .
    • Oncology delivered growth despite Rylaze timing headwinds: Q4 oncology net product sales +7% YoY; Defitelio +13% and Zepzelca +6% YoY in Q4; Zepzelca 1L maintenance Phase 3 showed statistically significant and clinically meaningful OS and PFS benefit, with sNDA planned 1H25 .

  • What Went Wrong

    • HERIZON-GEA-01 readout timing slipped from expected 2Q25 to 2H25 based on updated event accrual, modestly pushing the timeline for a large potential indication .
    • Xyrem erosion continued: Q4 net sales down 54% YoY to $49.3M; while AG royalties rose, management highlighted risk that true generic Xyrem entries could eliminate AG royalties and create uncertain impact on Xywav .
    • Gross margin compression: GAAP gross margin fell to 87.4% in Q4 (from 88.9% in Q4’23), and non-GAAP to 91.6% (from 92.6%), reflecting inventory provisions and product mix .

Financial Results

Consolidated results – last three quarters (oldest → newest)

MetricQ2 2024Q3 2024Q4 2024
Total Revenue ($M)$1,023.8 $1,055.0 $1,088.2
GAAP EPS ($)$2.49 $3.42 $3.11
Non-GAAP EPS ($)$5.30 $6.61 $6.60
GAAP Gross Margin (%)88.6% 88.7% 87.4%
Non-GAAP Gross Margin (%)92.5% 92.6% 91.6%

Q4 year-over-year comparison and selected ratios

MetricQ4 2023Q4 2024
Total Revenue ($M)$1,011.9 $1,088.2
GAAP EPS ($)$1.42 $3.11
Non-GAAP EPS ($)$5.02 $6.60
GAAP Gross Margin (%)88.9% 87.4%
Non-GAAP Gross Margin (%)92.6% 91.6%
SG&A as % of Revenue (GAAP)39.1% 33.9%
R&D as % of Revenue (GAAP)21.4% 22.1%

Segment/product breakdown – Q4 2024 vs Q4 2023

Product ($M)Q4 2023Q4 2024
Xywav$337.0 $401.0
Xyrem$106.7 $49.3
Epidiolex/Epidyolex$240.6 $275.0
Sativex$5.1 $5.2
Total Neuroscience$689.5 $730.5
Rylaze/Enrylaze$101.7 $101.5
Zepzelca$74.0 $78.3
Defitelio/defibrotide$51.1 $57.7
Vyxeos$46.9 $53.2
Ziihera—$1.1
Total Oncology$273.8 $291.8
High-sodium oxybate AG royalty$39.4 $55.3

KPIs (Q4 2024)

KPIValue
Xywav active patients exiting Q4~14,150 (10,250 narcolepsy; 3,900 IH)
Xywav net patient adds in Q4~525 (≈350 IH; ≈175 narcolepsy)
Ziihera first-quarter net sales$1.1M (launch in Dec 2024)

Non-GAAP adjustments (Q4 2024): add-backs include intangible amortization ($158.9M), share-based comp ($70.2M), acquisition inventory step-up ($37.8M), and non-cash interest ($6.1M); beginning in 2025, non-GAAP will no longer add back non-cash interest .

Guidance Changes

Financial guidance (first issuance for FY2025)

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total RevenueFY2025N/A$4.15–$4.40B New
GAAP Gross Margin %FY2025N/A88% New
Non-GAAP Gross Margin %FY2025N/A92% New
GAAP SG&AFY2025N/A$1,404–$1,483M New
Non-GAAP SG&AFY2025N/A$1,250–$1,310M New
GAAP R&DFY2025N/A$792–$851M New
Non-GAAP R&DFY2025N/A$720–$770M New
GAAP Effective Tax RateFY2025N/A(5%)–10% New
Non-GAAP Effective Tax RateFY2025N/A13%–15% New
GAAP Net IncomeFY2025N/A$560–$720M New
Non-GAAP Net IncomeFY2025N/A$1,400–$1,500M New
GAAP EPSFY2025N/A$9.15–$11.50 New
Non-GAAP EPSFY2025N/A$22.50–$24.00 New
Shares (Wtd Avg)FY2025N/A62–63M New
Non-GAAP methodologyFY2025Included non-cash interest historicallyExcludes non-cash interest from 2025 onward Methodology change

Operational/milestone guidance updates

ItemPreviousCurrentChange
HERIZON-GEA-01 PFS readout timingEstimated 2Q25 2H25 (based on event accrual) Pushed
Zepzelca sNDA (1L ES-SCLC)Plan to submit 1H25 On track to submit 1H25 Maintained
Rylaze timing headwindNormalize by early 2025 Still expected to normalize by early 2025 Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q4)Trend
Xywav growth and IH buildQ2/Q3: strong net adds; IH prescriber expansion; nurse educator program Q4: +19% YoY; ~525 net adds; 14,150 active patients Improving momentum
Epidiolex durabilityQ3: nearing $1B; adult/LTC expansion; strong U.S. demand Q4: +14% YoY; confident in 2025 blockbuster; ANDA settlements to very late 2030s Positive, extended runway
Rylaze protocol impactQ3: temporary headwind; normalization early 2025 Q4: Q4 flat YoY; normalization still expected early 2025 Stabilizing
Zepzelca 1L ES-SCLCQ3: Phase 3 positive; sNDA planned 1H25 Q4: reiterate sNDA 1H25; “practice-changing” OS/PFS Advancement maintained
Zanidatamab (Ziihera)Q3: BTC PDUFA 11/29; GEA PFS est. 2Q25 Q4: U.S. BTC approval/launch; GEA PFS now 2H25; $2B+ peak potential longer term Launch began; GEA timing pushed
Capital allocation / BDQ3: delevering; active search Q4: continued focus; flexibility for M&A; deleveraging continued Ongoing
Xyrem/AG/generic riskQ3: Xyrem erosion; AG royalty uplift Q4: true generics would remove AG royalties; Xywav impact uncertain Key watch item

Management Commentary

  • “2024 was another record year for Jazz… more than $4 billion in total annual revenue and fourth quarter revenue of nearly $1.1 billion, our highest ever.” — Bruce Cozadd, CEO .
  • “Epidiolex… poised to reach blockbuster status this year.” — Bruce Cozadd .
  • “The combination [Zepzelca + atezolizumab] demonstrated statistically significant and clinically meaningful improvements in… overall survival and progression-free survival… potentially practice-changing.” — Rob Iannone, Head of R&D .
  • “Ziihera represents a significant growth opportunity with an estimated $2 billion plus in peak sales potential.” — Bruce Cozadd .
  • “Top-line PFS data from zanidatamab in Phase 3 1L GEA [is] expected in the second half of this year.” — Bruce Cozadd .

Q&A Highlights

  • Epidiolex IP runway: Settlements with all 10 ANDA filers allow generic entry in the “very late 2030s” under settlement terms; specifics confidential .
  • GEA trial timing: Enrollment to 918 patients completing “in the coming weeks”; event accrual slower; readout 2H25; blinded to arm performance .
  • Xyrem generics risk: If “true generics” launch, AG royalty revenue would cease and Xyrem could erode faster; Xywav impact uncertain, depends on value recognition of low sodium .
  • Zepzelca commercialization: Expect practice-changing data to aid guideline inclusion post-publication; first-line market ~27K patients vs ~17K in 2L and longer duration expected .
  • M&A appetite: Delevered from ~4.9x (2021) to 1.8x at 2024-end; active across neuroscience, oncology, rare/orphan; valuations seen as not an impediment .

Estimates Context

  • S&P Global consensus estimates (revenue, EPS) for Q4 2024 and prior quarters were unavailable at retrieval time due to SPGI API rate limits; therefore, beat/miss vs consensus cannot be assessed here. We will update with S&P Global consensus once accessible.
  • Comparison in this recap is vs prior periods and company guidance; all quantitative figures are drawn from company filings and earnings materials .

Key Takeaways for Investors

  • Core franchises (Xywav, Epidiolex) underpin growth, offsetting Xyrem erosion; watch payer dynamics and the potential 2026 “true generic” Xyrem overhang impacting AG royalties and possibly Xywav .
  • Zepzelca’s positive 1L data and 1H25 sNDA filing are near-term catalysts that could expand the addressable market and treatment duration if approved; look for data presentation and guideline inclusion as interim markers .
  • Ziihera launched in BTC with modest near-term revenue but is strategic for HCP experience ahead of larger GEA and breast opportunities; note GEA readout timing shift to 2H25 .
  • 2025 guide (midpoint +5% revenue) balances growth in sleep/epilepsy/oncology with disciplined OpEx; non-GAAP methodology change (excluding non-cash interest) starts in 2025 and affects comparability .
  • Cash generation ($1.4B CFO in 2024) and liquidity support BD and buybacks while delevering; management indicates active M&A pipeline across focus areas .
  • Near-term monitoring: publication timing of Zepzelca 1L data, NCCN/compendia updates, Rylaze normalization, cadence of IH patient adds for Xywav, and updates on GEA trial event accrual .

Notes: All figures and statements are sourced from Jazz’s Q4/FY2024 8-K and press release and the Q4 earnings call. Citations are provided inline.