Jazz Pharmaceuticals Plc · NASDAQ:JAZZ
Jazz Pharmaceuticals — Q3 2020 Earnings Presentation
33 slides from Jazz Pharmaceuticals's earnings presentation, Nov 2, 2020
Slide 1: 2020 Third Quarter Financial Results
2020 THIRD QUARTER FINANCIAL RESULTS INNOVATING TO TRANSFORM THE LIVES OF PATIENTS November 2, 2020 © 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 slide deck and the accompanying oral presentation contain forward-looking statements, including, but not limited to, statements relate
Slide 3: 3Q20 Conference Call
3Q20 Conference Call Bruce Cozadd Overview Chairman and Chief Executive Officer Renée Galá Financial Update Executive Vice President and Chief Financial Officer Dan Swisher Commercial Performance President and Chief Operating Officer Rob Iannone, M.D., M.S.C.E. Research & Development Executive Vice
Slide 4: Business Updates
BUSINESS UPDATES
Slide 5: Successfully Executing on Key Objectives
Successfully Executing on Key Objectives ON TRACK TO EXECUTE UP TO FIVE KEY PRODUCT LAUNCHES THROUGH 2020 AND 2021 • First and only FDA approved DNRI to treat EDS in adults with narcolepsy or OSA • U.S. launch July 2019; European launch May 2020 • Innovative new treatment for relapsed small cell lun
Slide 6: Neuroscience Portfolio
Significant Momentum Neuroscience Portfolio XYREM XYWAV SUNOSI JZP-385* • Volume increased 4% in • Narcolepsy • 7% increase in total U.S. • Completed Phase 1 healthy 3Q20 compared to ‒ FDA approved July 2020 prescriptions in 3Q20 volunteer study September 3Q19 compared to 2Q20 2020 to evaluate a mod
Slide 7: Post-Traumatic Stress Disorder
Post-Traumatic Stress Disorder Global public health concern with significant morbidity and mortality Disease Overview INNOVATIVE MEDICINE • PTSD: a psychiatric condition that can result from • PF-04457845 (PF-’845), a Phase 2-ready irreversible direct or indirect exposure to actual or threatened FAA
Slide 8: Expands Mid-Stage Neuroscience Pipeline into New Disease Area
Exclusive Global Rights to FAAH Inhibitor for the Potential Treatment of PTSD Expands Mid-Stage Neuroscience Pipeline into New Disease Area STRATEGIC FIT TRANSACTION DETAILS • High unmet medical need in large patient population • In October 2020, Jazz acquired SpringWorks’ FAAH with debilitating neu
Slide 9: Oncology Portfolio
Delivering Meaningful Growth Oncology Portfolio ZEPZELCA JZP-458 DEFITELIO VYXEOS • Strong demand following • In September 2020, FDA • Completed Phase 2 proof- • Clinical data submitted U.S. launch July 2020 granted Rare Pediatric of-concept study for for presentation at ASH • $37M net sales in 3Q20
Slide 10: Financial Update
FINANCIAL UPDATE
Slide 11: Strong 3Q20 Performance with Increasingly Diversified Revenues
Strong 3Q20 Performance with Increasingly Diversified Revenues TOTAL REVENUES Δ Δ In millions, except % 3Q19 2Q20 3Q20 3Q20 vs 3Q20 vs (unaudited) 2Q20 3Q19 $ in millions Xyrem® (sodium oxybate) oral $426 $447 $448 -- 5% solution $601 Defitelio® (defibrotide 38 43 50 18% 34% sodium)/defibrotide $538
Slide 12: Strong Revenue Growth Year over Year Despite COVID-19
Strong Revenue Growth Year over Year Despite COVID-19 TOTAL REVENUES Nine Months Ended In millions, except % Δ (unaudited) Sept. 30, 2019 Sept. 30, 2020 $ in millions Xyrem $1,207 $1,302 8% $1,698 Defitelio/defibrotide 125 140 12% $1,580 Erwinaze/Erwinase 123 91 (26)% Vyxeos 90 90 -- Zepzelca1 -- 37
Slide 13: 3Q20 Key Adjusted Line Items and Other Information
3Q20 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 3Q19 2Q20 3Q20 (unaudited) 3Q20 vs 2Q20 3Q20 vs 3Q19 Gross Margin 94.5% 95.3% 93.3% (2.0) pp (1.2) pp SG&A Expense $158 $17
Slide 14: 2020 YTD Key Adjusted Line Items and Other Information
2020 YTD Key Adjusted Line Items and Other Information1 Operating expenses support growing development pipeline and up to 5 key launches through 2020-2021 Nine Months Ended In millions, except % Δ (unaudited) Sept. 30, 2019 Sept. 30, 2020 Gross Margin 94.4% 94.5% 0.1 pp SG&A Expense $461 $544 18% %
Slide 15: Financial Performance
Financial Performance 2020 ANI impacted by $200M payment to PharmaMar for exclusive U.S. rights to Zepzelca1 $632 $475 Adjusted Net Income $235 $242 ($ in millions) Beginning in 2020, the company no 3Q19 3Q20 YTD 9/30/19 YTD 9/30/20 longer excludes upfront and milestone payments from the company’s n
Slide 16: Strong Cash Position and Borrowing Capacity
Strong Cash Position and Borrowing Capacity Well-positioned to execute on our near and long-term strategy In millions December 31, 2019 September 30, 2020 (unaudited) $713M Cash, cash equivalents and investments $1,077 $1,917 Operating cash flow Total long-term debt (principal)2 $1,768 $2,386 YTD1 U
Slide 17: 2020 Total Revenue Guidance Increased
2020 Total Revenue Guidance Increased Oncology net product sales guidance increase driven by significant momentum in Zepzelca In millions, except % Prior 2020 Guidance1 Current 2020 Guidance2 Revenues $2,225 – $2,325 $2,320 – $2,380 Total Net Product Sales $2,210 – $2,310 $2,300 – $2,360 Neuroscienc
Slide 18: 2020 Full-Year Financial Guidance - GAAP
2020 Full-Year Financial Guidance - GAAP In millions, except per share amounts and % Prior 2020 Guidance1 Current 2020 Guidance2 Gross Margin 94% 94% SG&A Expense $785 – $843 $820 – $858 SG&A as % of Total Revenues 34% – 38% 34% – 37% R&D Expense $302 – $338 $302 – $338 R&D as % of Total Revenues 13
Slide 19: 2020 Full-Year Financial Guidance – Non-GAAP
2020 Full-Year Financial Guidance – Non-GAAP In millions, except per share amounts and % Prior 2020 Guidance1 Current 2020 Guidance2 Gross Margin 94% 94%3,9 SG&A Expense $700 – $750 $735 – $7654,9 SG&A as % of Total Revenues 30% – 34% 31% – 33% R&D Expense $275 – $305 $275 – $3055,9 R&D as % of Tota
Slide 20: 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 (unaudited) (unaudited) $15.38 $2,320- $2,3802 $13.54 $12.20 –
Slide 21: Appendix
APPENDIX
Slide 22: 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 Undisclosed targets JZP-324 JZP-3854 JZP-258 Neuroscience Oxybate extended-release formulation Essential tremor (Phase 2b) Idiopathic hypers
Slide 23: 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 24: 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 3Q19 2Q20 3Q20 (unaudited) GAAP reported net income $ 102.3 $ 114.8 $ 148.2 Intangible asset amortization 62.9 63.0 66.7 Share-based compensation expense 28.8 30.6 30.4 Acquired IPR&D asset acquisit
Slide 25: 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 3Q19 GAAP Reported $ 3
Slide 26: 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 provision rate 2Q20 GAAP Reported $ 28.0 95.0% $ 191
Slide 27: 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 Nine Months Ended Sept. 30, (unaudited) 2019 2020 GAAP reported net income $ 449.4 $ 105.2 Intangible asset amortization 181.3 192.5 Share-based compensation expense 84.6 89.6 Impairment charge -- 1
Slide 28: 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 YTD (unaudited) sales margin SG&A R&D amortization Charge IPR&D net (benefit) tax rat
Slide 29: 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 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
Slide 30: 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) 2016 2017 2018 2019 2020G GAAP SG&A and R&D expense1 $ 665.2 $ 742.6 $ 910.1 $ 1,036.6 $ 1,122 – $ 1,196 Share-based compensation expense (94.3) (101.1) (95.8) (103.9) (112) – (126) Loss contingency -- -- (
Slide 31: 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 $205 – $270 Intangible asset amortization 250 – 270 Share-based compensation expense 120 – 135 Impairment charge 136 Loss on extinguishment of debt 4
Slide 32: 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 3Q20 -- -- -- company has 2Q20 $7 7
Slide 33: Glossary of Terms
Glossary of Terms aGvHD = Acute Graft-vs-Host Disease HR-MDS = High-Risk MDS ALL = Acute Lymphoblastic Leukemia IH = Idiopathic Hypersomnia AML = Acute Myeloid Leukemia IMGN = ImmunoGen AMLSG = AML Study Group IP = Intellectual Property ANI = Adjusted Net Income IPR&D = In-Process Research & Develop