Jazz Pharmaceuticals Plc · NASDAQ:JAZZ

Jazz Pharmaceuticals — Q1 2020 Earnings Presentation

26 slides from Jazz Pharmaceuticals's earnings presentation, May 5, 2020

  1. Slide 1: 2020 First Quarter Financial Results

    2020 First Quarter Financial Results May 5, 2020 © 2019 Jazz Pharmaceuticals all rights reserved.

  2. Slide 2: Forward-Looking Statements

    Forward-Looking Statements "Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995 This slide deck and the accompanying oral presentation contain forward-looking statements, including, but not limited to, statements related to Jazz Pharmaceuticals’ future financial and ope

  3. Slide 3: 1Q20 Conference Call

    1Q20 Conference Call Bruce Cozadd Sleep/Neuroscience Commercial Performance Chairman and Chief Executive Officer Dan Swisher Hematology/Oncology Commercial Performance President and Chief Operating Officer Rob Iannone, M.D., M.S.C.E. Research & Development Executive Vice President, Research & Develo

  4. Slide 4: Comprehensive Response Strategy to Manage COVID-19 Impact

    Comprehensive Response Strategy to Manage COVID-19 Impact on Our Employees, Patients and Business Supply Chain – Dedicated to maintaining sufficient supply of our medicines and ensuring patient access including through comprehensive support of patient assistance programs for those impacted by change

  5. Slide 5: Focused on Advancing Clinical Programs and Launch Execution

    Focused on Advancing Clinical Programs and Launch Execution Sleep and Neuroscience Xyrem JZP-258 Sunosi JZP-385 • Volume growth of 5% in • NDA accepted for • Access to targeted OSA • Developing modified 1Q20 compared to priority review with prescriber audience limited release formulation with 1Q19 P

  6. Slide 6: Focused on Key Clinical Objectives and Pre-Launch Activities

    Focused on Key Clinical Objectives and Pre-Launch Activities Hematology and Oncology Defitelio Vyxeos JZP-458 Lurbinectedin • Top-line data in Phase 2 • 5-year OS data from the • Enrollment in pivotal • Exclusive U.S. license prevention of aGvHD study pivotal Phase 3 study to Phase 2/3 study is ongo

  7. Slide 7: 1Q20 Total Revenues of $535 Million

    1Q20 Total Revenues of $535 Million $ millions Δ Δ (unaudited) In millions, except % 1Q19 4Q19 1Q20 1Q20 vs 1Q20 vs (unaudited) 4Q19 1Q19 600 Xyrem® (sodium oxybate) oral $368 $435 $408 (6)% 11% solution 500 Erwinaze®/Erwinase® (asparaginase Erwinia 61 55 38 (31)% (38)% chrysanthemi) 400 Defitelio®

  8. Slide 8: 1Q20 Key Adjusted Line Items and Other Information

    1Q20 Key Adjusted Line Items and Other Information1 Adjusted Δ Δ In millions, except % 1Q19 4Q19 1Q20 1Q20 vs 4Q19 1Q20 vs 1Q19 (unaudited) Gross Margin 93.7% 94.1% 94.9% 0.8 pp 1.2 pp SG&A Expense $148 $197 $188 (5)% 27% % of Total Revenues 29.0% 33.9% 35.1% 1.2 pp 6.1 pp R&D Expense $55 $90 $80 (1

  9. Slide 9: Key Impact on 1Q20 ANI and EPS: $200M Payment to PharmaMar

    Key Impact on 1Q20 ANI and EPS: $200M Payment to PharmaMar for Exclusive U.S. Rights to Lurbinectedin Adjusted Net Income1 Adjusted Net Income Per Diluted Share1 $ millions $ per share (unaudited) (unaudited) 200 3.50 3.00 150 2.50 2.00 100 $164 1.50 $2.83 1.00 50 0.50 $26 $0.45 0 0.00 1Q19 1Q20 1Q1

  10. Slide 10: Strong Balance Sheet with $1 Billion in Cash and Investments

    Strong Balance Sheet with $1 Billion in Cash and Investments In millions December 31, 2019 March 31, 2020 (unaudited) Cash, cash equivalents and investments $1,077 $982 Total long-term debt (principal)1 $1,768 $1,759 Undrawn revolving credit2 $1,600 $1,600 In millions Three Months Ended March 31, (u

  11. Slide 11: Summary of Share Repurchases Under Current Program

    Summary of Share Repurchases Under Current Program $439M Remaining Amount Authorized Under $1.52B Share Repurchase Program Dollar Amount Average Shares Share Repurchases Repurchased Purchase Repurchased (in millions) Price Per Share 1Q20 $139.1 1,131,300 $122.91 2019 $301.4 2,250,118 $133.97 2018 $5

  12. Slide 12: 2020 Full-Year Key Financial Guidance Assumptions: COVID-19

    2020 Full-Year Key Financial Guidance Assumptions: COVID-19 • Full-year financial guidance for 2020 reflects the anticipated financial impact of COVID-19 to our business and assumes the majority of the negative impact will be in the second quarter, with a return to normalized operations later in the

  13. Slide 13: 2020 Full-Year Revenue Financial Guidance

    2020 Full-Year Revenue Financial Guidance Prior 2020 Prior 2020 Current 2020 Current 2020 In millions, except % Guidance1 Guidance1 vs 2019 Guidance2 Guidance2 vs 2019 Revenues $2,320 – $2,400 7% – 11% $2,120 – $2,260 (2)% – 5% Total Net Product Sales $2,305 – $2,375 8% – 11% $2,105 – $2,240 (1)% –

  14. Slide 14: 2020 Full-Year GAAP Financial Guidance

    2020 Full-Year GAAP Financial Guidance Prior 2020 Current 2020 Prior 2020 Current 2020 In millions, except per share amounts and % Guidance1 vs Guidance2 vs Guidance1 Guidance2 2019 2019 Gross Margin 94% -- 94% -- SG&A Expense $855 – $903 16% – 23% $785 – $843 7% – 14% SG&A as % of Total Revenues 36

  15. Slide 15: 2020 Full-Year Non-GAAP Financial Guidance

    2020 Full-Year Non-GAAP Financial Guidance Prior 2020 Current 2020 Prior 2020 Current 2020 In millions, except per share amounts and % Guidance1 vs Guidance2 vs Guidance1 Guidance2 2019 2019 Gross Margin 94% -- 94%3,8 -- SG&A Expense $770 – $810 17% – 23% $700 – $7504,8 6% – 14% SG&A as % of Total R

  16. Slide 16: Strong Top-Line Growth Enables Continued Investments for Revenue Diversification

    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 (unaudited) (unaudited) $15.38 $2,120- $2,2602 $13.54 $11.25–

  17. Slide 17: Appendix

    Appendix

  18. Slide 18: Robust Early- to Late-Stage Pipeline Fueled by Strong R&D Investment

    Robust Early- to Late-Stage Pipeline Fueled by Strong R&D Investment PRE-CLINICAL PHASE 1 PHASE 2 PHASE 3 REGULATORY JZP-324 Vyxeos JZP-3854 JZP-258 JZP-258 Oxybate once-nightly formulation Low Intensity Dosing for higher risk MDS3 Essential tremor (Phase 2b) Idiopathic hypersomnia Cataplexy & EDS i

  19. Slide 19: 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 presenta

  20. Slide 20: 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 1Q19 4Q19 1Q20 (unaudited) GAAP reported net income (loss) $ 85.2 $ 74.0 $ (157.8) Intangible asset amortization 56.9 173.5 62.8 Share-based compensation expense 27.6 25.9 28.7 Impairment charge --

  21. Slide 21: 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 expense, provision Effective Quarter (unaudited) sales margin SG&A R&D amortization charge net (benefit) tax rate 1Q19 GAAP

  22. Slide 22: 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 expense, Income tax Effective tax Quarter (unaudited) sales margin SG&A R&D amortization net benefit rate 4Q19 GAAP Reported $ 35.3 93.9% $ 214.3

  23. Slide 23: 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 2016 2017 2018 2019 (unaudited) GAAP net income1 $ 396.8 $ 487.8 $ 447.1 $ 523.4 Intangible asset amortization 102.0 152.1 201.5 354.8 Share-based compensation expense 98.8 106.9 102.4 110.6 Loss co

  24. Slide 24: 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 2016 2017 2018 2019 2020G (unaudited) GAAP SG&A and R&D expense1 $ 665.2 $ 742.6 $ 910.1 $ 1,036.6 $ 1,062 – $ 1,156 Share-based compensation expense (94.3) (101.1) (95.8) (103.9) (112) – (126) Loss contingency -- -- (

  25. Slide 25: Reconciliation of GAAP to Non-GAAP Adjusted 2020 Net Income Guidance

    Reconciliation of GAAP to Non-GAAP Adjusted 2020 Net Income Guidance In millions, except per share amounts 2020 (unaudited) Guidance1 GAAP net income $150 – $240 Intangible asset amortization 250 – 270 Share-based compensation expense 120 – 135 Impairment charge 136 Non-cash interest expense 45 – 55

  26. Slide 26: Glossary of Abbreviations

    Glossary of Abbreviations aGvHD = Acute Graft-vs-Host Disease HSCT = Hematopoietic Stem Cell Transplantation ALL = Acute Lymphoblastic Leukemia IA = Interim Analysis AML = Acute Myeloid Leukemia IH = Idiopathic Hypersomnia AMLSG = AML Study Group IMGN = ImmunoGen ANI = Adjusted Net Income IPR&D = In

Jazz Pharmaceuticals — Q1 2020 Earnings Presentation on 6ix