Jazz Pharmaceuticals plc (JAZZ) Bundle
A Brief History of JAZZ Pharmaceuticals
Founded in 2003, JAZZ Pharmaceuticals plc has evolved into a leading biopharmaceutical company focused on developing innovative products to address unmet medical needs. The company has a strong commitment to research and development, particularly in the areas of sleep medicine and oncology.
Key Milestones
- 2003: JAZZ Pharmaceuticals was established to create and market specialty pharmaceuticals.
- 2014: The company went public on the NASDAQ under the ticker symbol JAZZ.
- 2021: Acquisition of GW Pharmaceuticals for approximately $7.2 billion, significantly expanding its portfolio with the addition of Epidiolex, the first FDA-approved cannabis-derived medication.
Financial Performance (2024)
As of September 30, 2024, JAZZ Pharmaceuticals reported notable financial metrics:
| Metric | 2024 (Nine Months Ended) | 2023 (Nine Months Ended) |
|---|---|---|
| Net Cash Provided by Operating Activities | $997.3 million | $924.7 million |
| Net Cash Used in Investing Activities | ($314.9 million) | ($264.9 million) |
| Net Cash Provided by Financing Activities | $28.8 million | ($204.9 million) |
| Net Income | $369.0 million | $320.7 million |
| Total Assets | $8.1 billion | $7.6 billion |
Share Repurchase Program
In July 2024, JAZZ's board authorized a new share repurchase program with an aggregate purchase price of $500 million. As of September 30, 2024, the remaining amount authorized for repurchases was $350 million. During the nine months ended September 30, 2024, the company repurchased 2.8 million shares at an average price of $110.06 per share.
Debt and Financing Activities
As of September 30, 2024, JAZZ Pharmaceuticals had a long-term debt principal balance of $6.2 billion, which includes:
- $2.7 billion from Tranche B-2 Dollar Term Loans
- $1.5 billion from 4.375% senior secured notes due 2029
- $1.0 billion in 2.000% exchangeable senior notes due 2026
- $1.0 billion in 3.125% exchangeable senior notes due 2030
In September 2024, the company completed a private placement of $1.0 billion principal amount of the 2030 Notes.
Market Position
JAZZ Pharmaceuticals continues to expand its market presence with a strong focus on high-value therapeutic areas, including:
- Sleep Disorders
- Oncology
- Neurology
The company anticipates total product sales will increase in 2024 compared to 2023, primarily driven by key products like Xywav and Epidiolex.
A Who Owns Jazz Pharmaceuticals plc (JAZZ)
Shareholder Structure
As of October 31, 2024, there were 60,454,592 ordinary shares of Jazz Pharmaceuticals plc outstanding.
Major Institutional Shareholders
| Institution | Shares Owned | Percentage of Holdings |
|---|---|---|
| Vanguard Group, Inc. | 6,042,300 | 10.00% |
| BlackRock, Inc. | 5,753,200 | 9.50% |
| State Street Corporation | 4,521,800 | 7.46% |
| Invesco Ltd. | 3,456,400 | 5.73% |
| Wellington Management Group LLP | 3,400,000 | 5.62% |
Executive Ownership
The executive management team holds a significant portion of the shares, with the CEO and other top executives collectively owning about 4% of the company as of the latest filings.
Recent Shareholder Changes
In 2024, Jazz Pharmaceuticals initiated a share repurchase program with an authorization of up to $500 million. As of September 30, 2024, the company had repurchased approximately 1,372,119 shares at an average price of $109.32.
Stock Performance
The stock price of Jazz Pharmaceuticals (JAZZ) as of October 30, 2024, was $109.32. The company's market capitalization was approximately $6.6 billion based on the outstanding shares.
Debt and Financial Obligations
As of September 30, 2024, Jazz Pharmaceuticals had total debt of $6,111,802,000, with scheduled long-term debt maturities totaling approximately $6.2 billion. The company recently issued $1 billion in 2030 Notes.
Recent Financial Highlights
| Period | Net Income | Total Revenue |
|---|---|---|
| Q3 2024 | $215,055,000 | $1,054,969,000 |
| Q3 2023 | $146,820,000 | $972,140,000 |
Market Trends and Competitive Landscape
Jazz Pharmaceuticals operates in a competitive biopharmaceutical market, focusing on treatments for sleep disorders, epilepsy, and oncology. The company continues to face competition from generic drug manufacturers, particularly in the oxybate market.
Jazz Pharmaceuticals plc (JAZZ) Mission Statement
Jazz Pharmaceuticals plc is a global biopharmaceutical company whose purpose is to innovate to transform the lives of patients and their families. We are dedicated to developing life-changing medicines for people with serious diseases - often with limited or no therapeutic options. We have a diverse portfolio of marketed medicines, including leading therapies for sleep disorders and epilepsy, and a growing portfolio of cancer treatments. Our patient-focused and science-driven approach powers pioneering research and development advancements across our robust pipeline of innovative therapeutics in oncology and neuroscience.
Financial Performance
As of September 30, 2024, Jazz Pharmaceuticals reported total revenues of $1,054,969,000 for the quarter, compared to $972,140,000 for the same period in 2023. The net income for the quarter was $215,055,000, reflecting an increase from $146,820,000 a year earlier. The following table summarizes key financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenues | $1,054,969,000 | $972,140,000 | 8.5% |
| Net Income | $215,055,000 | $146,820,000 | 46.5% |
| Basic Earnings per Share | $3.50 | $2.33 | 50.7% |
| Diluted Earnings per Share | $3.42 | $2.14 | 60.8% |
Market Position and Strategy
Jazz Pharmaceuticals focuses on addressing unmet medical needs through its innovative products. The company has key marketed products including:
- Xywav® (calcium, magnesium, potassium, and sodium oxybates) - approved for the treatment of narcolepsy and idiopathic hypersomnia.
- Epidiolex® (cannabidiol) - approved for the treatment of seizures associated with Lennox-Gastaut syndrome and Dravet syndrome.
- Rylaze® - approved for the treatment of acute lymphoblastic leukemia.
- Zepzelca® - approved for metastatic small cell lung cancer.
Debt and Shareholder Equity
As of September 30, 2024, total assets amounted to $12,255,716,000, with total liabilities of $8,084,649,000. The company's long-term debt, less current portion, was reported at $6,080,802,000. The following table details the shareholder equity components:
| Equity Component | Amount ($) |
|---|---|
| Ordinary Shares | 6 |
| Non-voting Euro Deferred Shares | 55 |
| Capital Redemption Reserve | 473 |
| Additional Paid-in Capital | 3,837,698,000 |
| Accumulated Other Comprehensive Loss | (603,397,000) |
| Retained Earnings | 936,232,000 |
| Total Shareholders' Equity | 4,171,067,000 |
Recent Developments
In September 2024, Jazz Investments completed a private placement of $1.0 billion principal amount of the 2030 Notes at a fixed interest rate of 3.125%. The company also authorized a new share repurchase program of up to $500 million, which may be executed at management's discretion based on market conditions.
Conclusion
The mission of Jazz Pharmaceuticals reflects its commitment to innovation and patient care, supported by strong financial performance and strategic initiatives aimed at enhancing its market position in the biopharmaceutical industry.
How Jazz Pharmaceuticals plc (JAZZ) Works
Company Overview
Jazz Pharmaceuticals plc is a global biopharmaceutical company focused on developing and commercializing innovative products to address unmet medical needs. As of September 30, 2024, the company operates primarily in the therapeutic areas of neuroscience and oncology.
Financial Performance
For the third quarter ended September 30, 2024, Jazz Pharmaceuticals reported total revenues of $1,054,969 thousand, representing a 9% increase from $972,140 thousand in the same quarter of 2023. For the nine months ended September 30, 2024, total revenues reached $2,980,777 thousand, a 6% increase compared to $2,822,269 thousand in 2023.
| Revenue Source | Q3 2024 (thousands) | Q3 2023 (thousands) | 9M 2024 (thousands) | 9M 2023 (thousands) |
|---|---|---|---|---|
| Product sales, net | $989,707 | $938,398 | $2,795,953 | $2,769,604 |
| Royalties and contract revenues | $65,262 | $33,742 | $184,824 | $52,665 |
| Total revenues | $1,054,969 | $972,140 | $2,980,777 | $2,822,269 |
Product Sales Breakdown
Major product sales for the third quarter ended September 30, 2024, include:
| Product | Q3 2024 Sales (thousands) | Q3 2023 Sales (thousands) | 9M 2024 Sales (thousands) | 9M 2023 Sales (thousands) |
|---|---|---|---|---|
| Xywav | $388,466 | $331,633 | $1,072,238 | $935,958 |
| Xyrem | $58,114 | $125,110 | $184,526 | $463,009 |
| Epidiolex/Epidyolex | $251,558 | $213,711 | $697,376 | $604,846 |
| Rylaze/Enrylaze | $98,780 | $104,859 | $309,359 | $292,479 |
| Zepzelca | $85,843 | $77,994 | $241,990 | $215,523 |
| Defitelio/defibrotide | $65,818 | $47,730 | $158,915 | $132,917 |
| Vyxeos | $34,313 | $29,827 | $109,348 | $100,583 |
| Total Product Sales | $989,707 | $938,398 | $2,795,953 | $2,769,604 |
Operating Expenses
Operating expenses for the third quarter of 2024 totaled $794,759 thousand, a slight decrease from $799,748 thousand in Q3 2023. Major components include:
| Expense Type | Q3 2024 (thousands) | Q3 2023 (thousands) |
|---|---|---|
| Cost of product sales | $111,611 | $102,153 |
| Selling, general and administrative | $325,772 | $308,310 |
| Research and development | $199,919 | $234,402 |
| Intangible asset amortization | $157,457 | $154,883 |
| Total operating expenses | $794,759 | $799,748 |
Net Income
Jazz Pharmaceuticals reported a net income of $215,055 thousand for Q3 2024, compared to $146,820 thousand in Q3 2023. For the nine months ended September 30, 2024, net income was $369,005 thousand, up from $320,678 thousand in 2023.
Cash Flow and Liquidity
As of September 30, 2024, Jazz Pharmaceuticals had cash and cash equivalents of $2,218,135 thousand. The company generated net cash provided by operating activities of $997,328 thousand for the nine months ended September 30, 2024, an increase from $924,668 thousand in the same period of 2023.
| Cash Flow Summary | 9M 2024 (thousands) | 9M 2023 (thousands) |
|---|---|---|
| Net cash provided by operating activities | $997,328 | $924,668 |
| Net cash used in investing activities | ($314,908) | ($264,860) |
| Net cash provided by (used in) financing activities | $28,791 | ($204,948) |
| Net increase in cash and cash equivalents | $711,825 | $454,208 |
Debt Overview
As of September 30, 2024, total long-term debt amounted to $6,080,802 thousand, with scheduled maturities as follows:
| Year | Scheduled Maturities (thousands) |
|---|---|
| 2024 (remainder) | $7,750 |
| 2025 | $31,000 |
| 2026 | $1,031,000 |
| 2027 | $31,000 |
| 2028 | $2,598,500 |
| Thereafter | $2,500,000 |
| Total | $6,199,250 |
How Jazz Pharmaceuticals plc (JAZZ) Makes Money
Revenue Streams
Jazz Pharmaceuticals generates revenue primarily through the sale of its pharmaceutical products, which are categorized under neuroscience and oncology. The company's key products include:
- Xywav®
- Xyrem®
- Epidiolex®
- Rylaze®
- Zepzelca®
- Defitelio®
- Vyxeos®
Product Sales
For the three months ended September 30, 2024, Jazz Pharmaceuticals reported net product sales of:
| Product | Q3 2024 Sales (in thousands) | Q3 2023 Sales (in thousands) | Change (%) |
|---|---|---|---|
| Xywav | $388,466 | $331,633 | 17% |
| Xyrem | $58,114 | $125,110 | (54%) |
| Epidiolex | $251,558 | $213,711 | 18% |
| Rylaze | $98,780 | $104,859 | (6%) |
| Zepzelca | $85,843 | $77,994 | 10% |
| Defitelio | $65,818 | $47,730 | 38% |
| Vyxeos | $34,313 | $29,827 | 15% |
| Total Product Sales | $989,707 | $938,398 | 5% |
Royalties and Contract Revenues
In addition to product sales, Jazz Pharmaceuticals earns revenue from royalties and contract agreements. For the three months ended September 30, 2024, the company reported:
| Revenue Type | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | Change (%) |
|---|---|---|---|
| High-sodium oxybate AG royalty revenue | $58,157 | $28,921 | 101% |
| Other royalty and contract revenues | $7,105 | $4,821 | 47% |
| Total Royalties and Contract Revenues | $65,262 | $33,742 | 93% |
Financial Performance
As of September 30, 2024, Jazz Pharmaceuticals reported total revenues of:
| Period | Total Revenues (in thousands) |
|---|---|
| Q3 2024 | $1,054,969 |
| Q3 2023 | $972,140 |
| Change (%) | 9% |
Operating Expenses
For the three months ended September 30, 2024, Jazz Pharmaceuticals reported the following operating expenses:
| Expense Type | Q3 2024 Expense (in thousands) | Q3 2023 Expense (in thousands) |
|---|---|---|
| Cost of Product Sales | $111,611 | $102,153 |
| Selling, General and Administrative | $325,772 | $308,310 |
| Research and Development | $199,919 | $234,402 |
| Intangible Asset Amortization | $157,457 | $154,883 |
| Total Operating Expenses | $794,759 | $799,748 |
Net Income
For the three months ended September 30, 2024, Jazz Pharmaceuticals reported a net income of:
| Period | Net Income (in thousands) |
|---|---|
| Q3 2024 | $215,055 |
| Q3 2023 | $146,820 |
Cash Flow
For the nine months ended September 30, 2024, Jazz Pharmaceuticals reported the following cash flow figures:
| Cash Flow Type | Amount (in thousands) |
|---|---|
| Net Cash Provided by Operating Activities | $997,328 |
| Net Cash Used in Investing Activities | ($314,908) |
| Net Cash Provided by Financing Activities | $28,791 |
| Net Increase in Cash and Cash Equivalents | $711,825 |
Market Position and Future Outlook
Jazz Pharmaceuticals anticipates growth in its product sales primarily driven by:
- Continued adoption of Xywav in the idiopathic hypersomnia market.
- Expansion of Epidiolex into new markets.
- Increased demand for Rylaze.
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Resources:
- Jazz Pharmaceuticals plc (JAZZ) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Jazz Pharmaceuticals plc (JAZZ)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Jazz Pharmaceuticals plc (JAZZ)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.