Dublin-based pharma firm reports sales issues, profit drops
Jazz Pharmaceuticals affirms full year guidance despite challenges with two drugs
“Thus far, 2017 has been a highly productive year,” said Bruce Cozadd, chairman and chief executive of Jazz Pharmaceuticals. Photograph: Dara Mac Donaill/The Irish Times
Dublin-headquartered Jazz pharmaceuticals has affirmed its full year guidance despite an adjusted net income drop in the second quarter of 5 per cent to $157.4 million.
Sales of the company’s Defibrotide drug, which is used to treat a disease of the liver of people who have had a bone marrow transplant, fell by 9 per cent in the second quarter compared to the same period in 2016 “primarily due to inventory stocking” and the “impact of unfavourable exchange rates,” the company said.
Additionally, sales of Erwinase, a treatment for acute lymphoblastic leukaemia, experienced supply challenges that resulted in temporary supply disruptions in certain markets. The company expects those challenges to persist for the remainder of this year.
Putting its sales issues aside, Jazz Pharmaceuticals received approval from the US Food and Drug Administration (FDA) for a treatment called Vyxeos. The drug is to treat adults with newly-diagnosed therapy-related acute myeloid leukaemia.
“Thus far, 2017 has been a highly productive year. We have executed on and delivered results of key clinical development programs.” said Bruce Cozadd, chairman and chief executive of Jazz Pharmaceuticals.
“We continue to invest in our key products, product launches, R&D and corporate development activities to fuel our future growth and create long-term value,” he added.
On the whole, net product sales increased 3 per cent in the second quarter compared to the same period in 2016 as a result of higher net product sales of Xyrem, a drug used to treat cataplexy - sudden loss of muscle strength - and reduce daytime sleepiness in patients with narcolepsy.
While selling and administrative costs increased in the second quarter by over $10 million to $132 million, research and development expenses were consistent with the same period last year.
As part of a share buyback programme the company repurchased roughly 230,000 ordinary shares at an average cost of $134.10 per share.
Based in Ireland, Jazz Pharmaceuticals has an international presence with a diverse portfolio of products in the areas of sleep and oncology.