JAZZ Beats on Q3 Earnings & Sales, Narrows '25 Sales View

Jazz Pharmaceuticals JAZZ reported third-quarter 2025 adjusted earnings per share (EPS) of $8.13 per share, beating the Zacks Consensus Estimate of $5.74. This beat was largely due to an income tax benefit of around $206 million recognized during the quarter, stemming from the U.S. federal and state deferred tax assets obtained through the Chimerix acquisition. Earnings rose 24% year over year.Total revenues rose 7% year over year to $1.13 billion, which also beat the Zacks Consensus Estimate of $1.10 billion.Year to date, the stock has gained over 11% compared with the industry’s 10% growth.Image Source: Zacks Investment ResearchMore on JAZZ’s EarningsNet product sales increased nearly 8% year over year to $1.06 billion. The reported figure beat the Zacks Consensus Estimate of $1.04 billion and our model estimate of $1.03 billion.Jazz recorded $53 million in royalty revenues from high-sodium oxybate authorized generic (AG), down 9% year over year. The metric missed the Zacks Consensus Estimate and our model estimate of $55 million each.Other royalties and contract revenues were nearly $9 million, up 23% from the year-ago period levels.JAZZ’s Neuroscience SegmentSales of Jazz’s neuroscience products rose 10% year over year to $774 million.Net product sales for the combined oxybate business (Xyrem + Xywav) rose about 5% to $467 million. While this combined figure was in line with the Zacks Consensus Estimate, it beat our model estimates of $455 million.Sales of the sleep disorder drug Xyrem plunged 39% year over year to nearly $36 million due to patients switching to Xywav and the launch of AGs in 2023.Xywav, a low-sodium formulation of Xyrem, recorded sales of over $431 million in the quarter, up 11%. 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 20% to about $303 million, driven by volume growth and favorable gross to net deductions in the United States. The reported figure beat the Zacks Consensus Estimate and our model estimate of $274 million each.Cannabis-based mouth spray Sativex recorded sales of nearly $5 million in the quarter, up 4% year over year.JAZZ’s Oncology SegmentOncology product sales rose 1% to about $288 million.Chemotherapy drug Rylaze/Enrylaze posted sales of $100 million, which rose 1% year over year. However, this figure missed both the Zacks Consensus Estimate and our model estimate of $104 million and $108 million, respectively. Per Jazz, this soft sales performance was attributed to reduced overall asparaginase use following updates to pediatric acute lymphoblastic leukemia protocols that affect the timing of administration. Still, the company noted that Rylaze demand remains stable within the asparaginase class.Zepzelca, approved for small-cell lung cancer (SCLC), recorded sales over $79 million, down 8% year over year. This downside was attributed to increased competition in the second-line SCLC setting.Acute myeloid leukemia drug Vyxeos generated sales of about $38 million, up 10% from the year-ago period’s level. Defitelio sales declined 21% to $52 million.Sales of Ziihera, which was approved by the FDA in December 2024 for the biliary tract cancer indication, added over $8 million to the top line compared with $6 million in the previous quarter.Jazz also recorded revenues worth $11 million from the sales of its recently launched brain tumor drug Modeyso, which was approved by the FDA in August.Discussion on JAZZ’s Operating CostsAdjusted selling, general and administrative expenses (SG&A) rose 59% year over year to $460 million. This uptick was primarily owing to litigation settlements, including $90 million related to the Avadel dispute and $61.5 million tied to a Xyrem antitrust matter.Adjusted research and development (R&D) expenses declined 6% to $170 million, mainly due to lower clinical program costs incurred during the quarter.JAZZ Narrows 2025 Sales View but Lifts EPS ViewJazz revised its financial guidance for the full year. It now expects total revenues in the range of $4.18-$4.28 billion, compared to the previously guided range of $4.15-$4.30 billion. This narrowed guidance implies an increase of around 3% year over year at the midpoint.Adjusted SG&A expenses are now anticipated to be between $1.59 billion and $1.63 billion, compared with the prior guidance of $1.45 billion and $1.50 billion. Jazz lowered its forecasts for adjusted R&D expenses, now expected to be in the band of $680-$710 million (previously: $730-$780 million).The company now projects a benefit in income tax in the range of 15% to 20%, versus its previous guidance of a 27-37% tax expense.The company expects 2025 adjusted EPS to be in the range of $7.65 to $8.45, a significant increase over the previous guidance of $4.80 to $5.60.Jazz Pharmaceuticals PLC Price  Jazz Pharmaceuticals PLC price | Jazz Pharmaceuticals PLC QuoteJAZZ’s Zacks RankJazz currently carries a Zacks Rank #3 (Hold).Our Key Picks Among Biotech StocksSome better-ranked stocks from the sector are Alkermes ALKS, CorMedix CRMD and ANI Pharmaceuticals ANIP. While ALKS and CRMD each sport a Zacks Rank #1 (Strong Buy) at present, ANIP carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.EPS estimates for Alkermes’ 2025 have increased from $1.78 to $1.96, while those for 2026 have risen from $1.69 to $1.77 in the past 60 days. ALKS stock has gained 8% year to date.Alkermes’ earnings beat estimates in three of the trailing four quarters and missed the mark on one occasion, delivering an average negative surprise of 4.58%.In the past 60 days, estimates for CorMedix’s EPS have increased from $1.24 to $1.85 for 2025. During the same time, EPS estimates for 2026 have increased from $2.09 to $2.49. Year to date, shares of CRMD have rallied 38%.CorMedix’s earnings beat estimates in each of the trailing four quarters, the average surprise being 34.85%.In the past 60 days, estimates for ANI Pharmaceuticals’ EPS have increased from $7.25 to $7.29 for 2025. During the same time, EPS estimates for 2026 have increased from $7.74 to $7.81. Year to date, shares of ANIP have surged 68%.ANI Pharmaceuticals' earnings beat estimates in each of the trailing four quarters, the average surprise being 22.66%.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alkermes plc (ALKS): Free Stock Analysis Report Jazz Pharmaceuticals PLC (JAZZ): Free Stock Analysis Report ANI Pharmaceuticals, Inc. (ANIP): Free Stock Analysis Report CorMedix Inc (CRMD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks