Jazz Pharmaceuticals Plc · NASDAQ:JAZZ
Jazz Pharmaceuticals — Q4 2020 Earnings Presentation
39 slides from Jazz Pharmaceuticals's earnings presentation, Feb 23, 2021
Slide 1: 2020 Fourth Quarter and Full Year Financial Results
2020 FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS INNOVATING TO TRANSFORM THE LIVES OF PATIENTS February 23, 2021 © 2020 Jazz Pharmaceuticals all rights reserved.
Slide 2: Forward-Looking Statements
Life-Changing Medicines. Redefining Possibilities. Forward-Looking Statements “Safe Harbor" Statement Under The Private Securities Litigation Reform Act of 1995 This communication contain forward-looking statements, including, but not limited to, statements related to Jazz Pharmaceuticals’ future fi
Slide 3: Forward-Looking Statements (Continued)
Life-Changing Medicines. Redefining Possibilities. Forward-Looking Statements “Safe Harbor" Statement Under The Private Securities Litigation Reform Act of 1995 (Continued from Previous Slide) obtaining and maintaining adequate coverage and reimbursement for the company’s products; identifying and a
Slide 4: Non-GAAP Financial Measures
Life-Changing Medicines. Redefining Possibilities. Non-GAAP Financial Measures To supplement Jazz Pharmaceuticals’ financial results and guidance presented in accordance with U.S. generally accepted accounting principles (GAAP), the company uses certain non-GAAP (also referred to as adjusted or non-
Slide 5: Additional Information and Where to Find It
Additional Information and Where to Find It In connection with the proposed transaction, GW Pharmaceuticals intends to file a proxy statement with the SEC. Each of Jazz Pharmaceuticals and GW Pharmaceuticals may also file other relevant documents with the SEC regarding the proposed transaction. The
Slide 6: 4Q20 Conference Call
4Q20 Conference Call Bruce Cozadd Overview Chairman and Chief Executive Officer Dan Swisher Commercial Performance President and Chief Operating Officer Rob Iannone, M.D., M.S.C.E. Research & Development Executive Vice President, Research & Development and CMO Renée Galá Financial Update Executive V
Slide 7: Business Updates
BUSINESS UPDATES
Slide 8: Focused Execution Drives Long-Term Value
Focused Execution Drives Long-Term Value Key Achievements 2020 and Early 2021 PIPELINE TRANSACTIONS COMMERCIAL Xywav1 for EDS and Cataplexy GW Pharmaceuticals2 Execute up to five key product in Narcolepsy Company Acquisition launches through 2020 and 2021 FDA approval PharmaMar Launched in 2020 JZP-
Slide 9: Neuroscience Portfolio
Significant Momentum Neuroscience Portfolio OXYBATE SUNOSI XYWAV XYREM + XYWAV COMBINED • Revenue bottle volume growth compared to • Launched in the U.S. Nov. 2020 • 9% increase in total U.S. scripts in 4Q20 the prior year periods compared to 3Q20 • ~1,900 active patients at the end 2020 • 2% in 4Q2
Slide 10: Oncology Portfolio
Delivering Meaningful Growth Oncology Portfolio JZP-458 ZEPZELCA VYXEOS DEFITELIO • BLA submission initiated in • Strong demand following • Anticipate label updates in • Continued geographic 4Q20 under Real-Time U.S. launch July 2020 U.S. and EU for R/R expansion underway Oncology Review pediatric A
Slide 11: 2021 Goals
2021 Goals Aligned to Patient-Centric Strategy and Key Objectives PATIENT-CENTRIC CONTINUED COMMERCIAL ROBUST AND INNOVATION DRIVES OUR EXECUTION EXCELLENCE PRODUCTIVE PIPELINE STRATEGY Innovate to transform the lives Targeted launches: Key Pipeline Milestones: of patients • JZP-458 in ALL/LBL mid-y
Slide 12: Transaction Overview: GW Pharmaceuticals plc
TRANSACTION OVERVIEW: GW PHARMACEUTICALS PLC
Slide 13: GW Acquisition Expected to Drive Substantial Shareholder Value
GW Acquisition Expected to Drive Substantial Shareholder Value Creates an innovative, global, high-growth biopharma leader with a robust pipeline and one patient-centric mission Epidiolex has near-term blockbuster potential Combined Neuroscience business has global commercial and operational footpri
Slide 14: Combination Creates Global Neuroscience Leader
Combination Creates Global Neuroscience Leader Global leaders #1 Sleep Disorders Unparalleled Leader in in complementary areas Franchise Cannabinoid Science SLEEP Addition of third DISORDERS high-growth commercial franchise EPILEPSIES with blockbuster potential ONCOLOGY • Global commercial and • Aug
Slide 15: Transaction Expected to Deliver Substantial and Sustainable Value
Transaction Expected to Deliver Substantial and Sustainable Value Disciplined Allocation of Capital in Alignment With Our Strategic Priorities TRANSACTION ALIGNED TO LEVERAGING FINANCIAL DISCIPLINED USE OF CAPITAL CAPITAL ALLOCATION STRATEGY STRENGTH Accelerates revenue Expect to be EPS accretive $2
Slide 16: Transaction Overview
Transaction Overview • Holders of GW ADSs, which each represent 12 GW ordinary shares, will be entitled to receive $220 for each GW ADS — Representing $200 in cash and $20 in shares of Jazz stock, subject to a 10% collar centered on Jazz’s closing share Purchase Price price on February 1, 2021 • Tot
Slide 17: Financial Update
FINANCIAL UPDATE
Slide 18: Strong Performance with Increasingly Diversified Revenues
Strong Performance with Increasingly Diversified Revenues Δ Δ In millions, except % TOTAL REVENUES (unaudited) 4Q19 3Q20 4Q20 4Q20 vs 4Q20 vs 3Q20 4Q19 $ in millions Xyrem® (sodium oxybate) oral solution $435 $448 $439 (2)% 1% $666 Sunosi® (solriamfetol) 3 9 9 (4)% N/A Xywav™ (calcium, magnesium, po
Slide 19: Strong Revenue Growth Year over Year
Strong Revenue Growth Year over Year Year Ended TOTAL REVENUES In millions, except % Δ (unaudited) 2019 2020 $ in millions Xyrem $1,643 $1,742 6% Sunosi 4 28 N/A $2,364 Xywav1 -- 15 N/A $2,162 Total Neuroscience 1,646 1,785 8% Defitelio/defibrotide 173 196 13% Erwinaze/Erwinase 177 147 (17)% Vyxeos
Slide 20: 4Q20 Key Adjusted Line Items and Other Information
4Q20 Key Adjusted Line Items and Other Information1 Operating expenses support growing development pipeline and up to 5 key launches through 2020-2021 In millions, except % Δ Δ 4Q19 3Q20 4Q20 (unaudited) 4Q20 vs 3Q20 4Q20 vs 4Q19 Gross Margin 94.1% 93.3% 92.7% (0.6) pp (1.4) pp SG&A Expense $197 $18
Slide 21: 2020 Key Adjusted Line Items and Other Information
2020 Key Adjusted Line Items and Other Information1 Operating expenses support growing development pipeline and up to 5 key launches through 2020-2021 Year Ended In millions, except % Δ (unaudited) 2019 2020 Gross Margin 94.3% 94.0% (0.3) pp SG&A Expense $658 $770 17% % of Total Revenues 30.4% 32.6%
Slide 22: Financial Performance
Financial Performance 2020 ANI impacted by $200M payment to PharmaMar for exclusive U.S. rights to Zepzelca1 $885 $704 Adjusted Net Income $253 $229 ($ in millions) Beginning in 2020, the company no 4Q19 4Q20 2019 2020 longer excludes upfront and milestone $15.38 payments from the company’s non-GAAP
Slide 23: Strong Cash Position
Strong Cash Position Well-positioned to execute on our near and long-term strategy In millions December 31, 2019 December 31, 2020 (unaudited) $900M Cash, cash equivalents and investments $1,077 $2,133 Operating cash flow Total long-term debt (principal)2 $1,768 $2,378 20201 Undrawn revolving credit
Slide 24: 2021 Total Revenue Guidance
2021 Total Revenue Guidance Expect Double Digit Growth In millions 2021 Guidance1 Revenues $2,550 – $2,700 Total Net Product Sales $2,540 – $2,685 Neuroscience Net Sales $1,785 – $1,885 Oncology Net Sales $715 – $835 1 2021 Financial Guidance provided by Jazz Pharmaceuticals plc on and as of Februar
Slide 25: 2021 Full-Year Financial Guidance
2021 Full-Year Financial Guidance In millions, except per share amounts and % GAAP1 Non-GAAP Adjusted1 Gross Margin 93% 93%2,6 SG&A Expense $1,032 – $1,100 $905 – $9453,6 SG&A as % of Total Revenues 38% – 43% 34% – 37% R&D Expense $365 – $410 $330 – $3704,6 R&D as % of Total Revenues 14% – 16% 12% –
Slide 26: Strong Top-Line Growth Enables Continued Investments
Strong Top-Line Growth Enables Continued Investments for Further Revenue Diversification and R&D Portfolio Expansion TOTAL REVENUES1 TOTAL ADJUSTED SG&A and R&D3 NON-GAAP ADJUSTED NET INCOME $ in millions $ in millions PER DILUTED SHARE3 $15.65 – $2,550- $2,7002 (unaudited) (unaudited) $16.852 $15.3
Slide 27: Appendix
APPENDIX
Slide 28: Robust and Productive Pipeline for Sustainable Growth
Robust and Productive Pipeline for Sustainable Growth Targeted investments designed to fuel growth through 2025 and beyond PRE-CLINICAL PHASE 1 PHASE 2 PHASE 3 REGULATORY Undisclosed targets JZP-324 JZP-3854 Vyxeos JZP-258 Neuroscience Oxybate extended-release formulation Essential tremor (Phase 2b)
Slide 29: Non-GAAP Financial Measures
Non-GAAP Financial Measures To supplement Jazz Pharmaceuticals’ financial results and guidance presented in accordance with U.S. generally accepted accounting principles (GAAP), the company uses certain non-GAAP (also referred to as adjusted or non-GAAP adjusted) financial measures in this presentat
Slide 30: Reconciliation of GAAP Reported to Non-GAAP Adjusted Net Income
Reconciliation of GAAP Reported to Non-GAAP Adjusted Net Income In millions, except per share amounts 4Q19 3Q20 4Q20 (unaudited) GAAP reported net income $ 74.0 $ 148.2 $ 133.4 Intangible asset amortization 173.5 66.7 67.1 Share-based compensation expense 25.9 30.4 31.4 Non-cash interest expense 12.
Slide 31: Reconciliations of GAAP Reported to Non-GAAP Adjusted Information Certain Line Items
Reconciliations of GAAP Reported to Non-GAAP Adjusted Information Certain Line Items Cost of Intangible Interest Income tax In millions, except % product Gross asset expense, provision Effective Quarter (unaudited) sales margin SG&A R&D amortization net (benefit) tax rate 4Q19 GAAP Reported $ 35.3 9
Slide 32: Reconciliations of GAAP Reported to Non-GAAP Adjusted Information Certain Line Items
Reconciliations of GAAP Reported to Non-GAAP Adjusted Information Certain Line Items Cost of Intangible Interest In millions, except % product Gross asset Acquired expense, Income tax Effective Quarter (unaudited) sales margin SG&A R&D amortization IPR&D net provision tax rate 3Q20 GAAP Reported $ 4
Slide 33: Reconciliations of GAAP Reported to Non-GAAP Adjusted Information Certain Line Items
Reconciliations of GAAP Reported to Non-GAAP Adjusted Information Certain Line Items Cost of Intangible Interest Income tax In millions, except % product Gross asset Impairment Acquired expense, provision Effective Year (unaudited) sales margin SG&A R&D amortization Charge IPR&D net (benefit) tax ra
Slide 34: Reconciliation of GAAP Reported to Non-GAAP Adjusted Net Income
Reconciliation of GAAP Reported to Non-GAAP Adjusted Net Income In millions, except per share amounts (unaudited) 2016 2017 2018 2019 2020 GAAP net income1 $ 396.8 $ 487.8 $ 447.1 $ 523.4 $ 238.6 Intangible asset amortization 102.0 152.1 201.5 354.8 259.6 Share-based compensation expense 98.8 106.9
Slide 35: Reconciliation of GAAP SG&A and R&D to Non-GAAP Adjusted SG&A and R&D
Reconciliation of GAAP SG&A and R&D to Non-GAAP Adjusted SG&A and R&D In millions (unaudited) 2017 2018 2019 2020 2021G GAAP SG&A and R&D expense1 $ 742.6 $ 910.1 $ 1,036.6 $ 1,189.6 $ 1,397 – $ 1,510 Share-based compensation expense (101.1) (95.8) (103.9) (113.6) (137.0) – (155.0) Loss contingency
Slide 36: Reconciliation of GAAP to Non-GAAP Adjusted 2021 Net Income Guidance
Reconciliation of GAAP to Non-GAAP Adjusted 2021 Net Income Guidance In millions, except per share amounts 2021 (unaudited) Guidance1 GAAP net income $485 – $610 Intangible asset amortization 210 – 230 Share-based compensation expense 145 – 165 Transaction related costs 25 – 40 Non-cash interest exp
Slide 37: Summary of Share Repurchases Under Current Program
Summary of Share Repurchases Under Current Program $431M remaining amount authorized under current share repurchase program Dollar Amount Shares Average Purchase Share Repurchases Repurchased Repurchased Price Per Share (in millions) (in thousands) Since 2013, the 2020 $147 1,201 $121.98 company has
Slide 38: Glossary of Terms
Glossary of Terms ALL = Acute Lymphoblastic Leukemia IH = Idiopathic Hypersomnia AML = Acute Myeloid Leukemia IPR&D = In-Process Research & Development AMLSG = AML Study Group LBL = Lymphoblastic Lymphoma ANI = Adjusted Net Income MDS = Myelodysplastic Syndrome BLA = Biologics License Application OS
Slide 39: Warnings
Warnings XYREM XYWAV WARNING: CENTRAL NERVOUS SYSTEM DEPRESSION and ABUSE AND WARNING: CENTRAL NERVOUS SYSTEM DEPRESSION and ABUSE AND MISUSE. MISUSE. • Central Nervous System Depression • Central Nervous System Depression Xyrem (sodium oxybate) is a CNS depressant. In clinical trials at recommended