As mentioned previously, JAZZ announced Q2 earnings after hours yesterday. The earnings report was much better than anticipated, and may provide a nice boost heading into the FDA Panel. JAZZ briefly crossed the $10 barrier in after hours trading. I have attached some of the highlights from the earnings below:
“For the second quarter of 2010, net product sales increased 49 percent to $39.5 million, compared to $26.5 million in the second quarter of 2009. Xyrem net sales for the second quarter of 2010 were $33.7 million, compared to $22.4 million for the second quarter of 2009, representing a 51 percent increase. The increase in Xyrem net sales in the second quarter of 2010 was primarily due to the impact of price increases, as well as an increase in prescription volume. Net sales of once-daily LUVOX CR(R) (fluvoxamine maleate) extended-release capsules were $5.8 million for the quarter, compared to $4.1 million for the second quarter of 2009, representing a 41 percent increase.”
“Adjusted net income for the quarter ended June 30, 2010 was $10.5 million, or $0.28 per diluted share, compared to an adjusted net loss of $4.6 million, or $0.16 per diluted share, for the same period of 2009. Adjusted net income (loss) and adjusted net income (loss) per diluted share are non-GAAP financial measures that exclude from GAAP net income (loss) and GAAP net income (loss) per diluted share revenue related to upfront and milestone payments, and certain expenses comprised of loss on extinguishment of debt, amortization of intangible assets, stock-based compensation and non-cash interest expense associated with debt discount and debt issuance costs. A reconciliation of adjusted net income (loss) and adjusted net income (loss) per diluted share to GAAP net income (loss) and GAAP net income (loss) per diluted share is available in a table included at the end of this press release.”
“Jazz Pharmaceuticals is revising its full year 2010 guidance to increase the company’s adjusted net income per share guidance and provide updated estimates of full year product sales and operating expenses. The revised financial guidance also reflects the impact of the recent financing activities. The new financial guidance for 2010 is as follows:
Total product sales, net $156 – $162 million
Xyrem $132 – $136 million
Luvox CR $24 – $26 million
Gross margin greater than 90%
SG&A expenses $70 – $75 million
R&D expenses $28 – $32 million
GAAP net income per diluted share $0.32 – $0.41
Adjusted net income per diluted share(1) $1.05 – $1.15″
On a seperate note, I took notice of the following comparison of QCOR and JAZZ on the Yahoo Boards from user “bh_laxmi”. It may be a little biased, but take a look:
QCOR:
Yearly eps: 50c
Trades at 24 times (p/e) to make a pps of $11
Has two drugs in market
No pipeline
Yearly Revenues are $110M
Market Cap is 700M (In other words, 7 times yearly Revenues or 24 times the eps)
JAZZ:
Yearly eps: $1.10
Trades at 9 times (p/e) to make a pps of $10
Has two drugs in market
Nice pipeline(including one for fybromialgia)
Yearly Revenues are $160M
Market Cap is 340M (In other words, 2 times yearly Revenues or 9 times the eps)
Needless to say- the remainder of this week should be VERY interesting for those holding JAZZ.
Article provided by Biorunup.com
Disclosure: Mark Messier has long position
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