Jazz Pharmaceuticals faced a challenging first quarter as revenue remained flat year over year, missing Wall Street expectations. Management attributed the performance to contrasting trends across its portfolio: robust double-digit growth for key neuroscience products, Xywav and Epidiolex, was offset by weaker results in oncology, notably for Zepzelca and Rylaze. CEO Bruce Cozadd described the quarter as one of "meaningful progress" in R&D and commercial execution, but also acknowledged near-term headwinds impacting some oncology products and a significant charge related to legal settlements. The company also noted that operational factors, including an additional inventory burn for Epidiolex and one fewer shipping week in oncology, contributed to the results.
Is now the time to buy JAZZ? Find out in our full research report (it’s free).
Jazz Pharmaceuticals (JAZZ) Q1 CY2025 Highlights:
- Revenue: $897.8 million vs analyst estimates of $986.6 million (flat year on year, 9% miss)
- Adjusted EPS: $1.68 vs analyst expectations of $4.66 (63.9% miss)
- Adjusted EBITDA: $206.5 million vs analyst estimates of $399.6 million (23% margin, 48.3% miss)
- The company reconfirmed its revenue guidance for the full year of $4.28 billion at the midpoint
- Management lowered its full-year Adjusted EPS guidance to $4.80 at the midpoint, a 79.4% decrease
- Operating Margin: -6.2%, down from 7.3% in the same quarter last year
- Market Capitalization: $6.51 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Jazz Pharmaceuticals’s Q1 Earnings Call
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Jason Gerberry (Bank of America) inquired about Jazz’s ability to mitigate tariff risks for Xywav supply. CEO Bruce Cozadd confirmed U.S. suppliers can fully meet domestic demand if tariffs are imposed, and there are no major issues sourcing active pharmaceutical ingredients domestically.
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Jessica Fye (JP Morgan) asked about the broader manufacturing footprint and contingency plans for tariffs. President Renee Gala detailed the mix of U.S. and European facilities, highlighting flexibility and inventory strategies as key mitigation tools. CFO Phil Johnson added that sufficient U.S. inventory has been built to cover 2025 needs.
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David Amsellem (Piper Sandler) focused on Zepzelca’s competitive positioning and future growth as label expansion and new entrants emerge. Gala emphasized ongoing market share strength in second-line therapy and anticipated growth from upcoming first-line approvals and practice-changing data.
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Annabel Samimy (Stifel) questioned the timeline for Rylaze recovery in adolescent and young adult segments. Gala acknowledged the education challenge but expects normalization in the second quarter and continued long-term growth efforts.
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Marc Goodman (Leerink Partners) sought clarity on the potential financial impact of tariffs if inventory strategies were exhausted. Johnson refrained from providing hypothetical figures but reiterated current protection from inventory and the ability to source production domestically as needed.
Catalysts in Upcoming Quarters
In assessing execution over the next several quarters, StockStory analysts will watch for (1) evidence of sustained growth and market share gains for Xywav and Epidiolex as disease awareness initiatives continue, (2) regulatory progress and commercialization for Dordaviprone and zanidatamab, and (3) normalization and renewed momentum for Rylaze and Zepzelca in the oncology portfolio. The impact of potential tariffs and competitive dynamics in both neuroscience and oncology will also be closely monitored.
Jazz Pharmaceuticals currently trades at $107.51, down from $111.10 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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