Jazz Pharmaceuticals’ second quarter saw management attribute performance to solid momentum in its neuroscience portfolio, particularly strong growth from Xywav, offset by near-term challenges in its oncology business. Executives acknowledged competitive dynamics and protocol changes affecting oncology sales, as well as inventory-related impacts on Epidiolex growth. CEO Bruce Cozadd described the period as “a quarter of robust execution in neuroscience, counterbalanced by oncology headwinds,” emphasizing the company’s reliance on new launches and approvals to sustain growth. Management also highlighted ongoing investments in patient education and field initiatives to bolster core products.
Is now the time to buy JAZZ? Find out in our full research report (it’s free).
Jazz Pharmaceuticals (JAZZ) Q2 CY2025 Highlights:
- Revenue: $1.05 billion vs analyst estimates of $1.04 billion (2.1% year-on-year growth, in line)
- Adjusted EPS: -$8.25 vs analyst expectations of -$6.25 (32.1% miss)
- Adjusted EBITDA: -$401.4 million vs analyst estimates of -$411.4 million (-38.4% margin, 2.4% beat)
- The company dropped its revenue guidance for the full year to $4.23 billion at the midpoint from $4.28 billion, a 1.2% decrease
- Management raised its full-year Adjusted EPS guidance to $5.20 at the midpoint, a 8.4% increase
- EBITDA guidance for the full year is $325 million at the midpoint, below analyst estimates of $771.2 million
- Operating Margin: -65.6%, down from 19.5% in the same quarter last year
- Market Capitalization: $6.87 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 From Jazz Pharmaceuticals’s Q2 Earnings Call
- Jason Matthew Gerberry (Bank of America) asked about the sustainability of Xywav’s patient adds in IH; CEO Renee Gala cited ongoing investments in patient and physician education as drivers, noting, “We see the most opportunity for growth in IH.”
- David A. Amsellem (Piper Sandler) pressed on Zepzelca’s competitive outlook; Gala acknowledged near-term headwinds from tarlatamab but expressed confidence that first-line maintenance approval could expand the addressable patient pool.
- Jessica Macomber Fye (JPMorgan) queried the level of detail expected in the upcoming zanidatamab Phase III data release; CEO Bruce Cozadd explained that initial communications would focus on headline endpoint results, with full data reserved for conference presentations.
- David Timothy Hoang (Deutsche Bank) inquired about Epidiolex’s path to blockbuster status and generic oxybate risk; Gala affirmed confidence in Epidiolex’s demand and addressed generic entry timing, emphasizing Xywav’s differentiation as the only low sodium oxybate.
- Mohit Bansal (Wells Fargo) questioned the impact of tariffs and possible Most Favored Nation (MFN) drug pricing changes; CFO Philip Johnson explained supply chain mitigation strategies for tariffs and acknowledged ongoing uncertainty around MFN’s potential effects on government pricing.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be closely tracking (1) progress toward FDA approval and commercial launch of dordaviprone, (2) the outcome of Zepzelca’s label expansion for first-line maintenance use in small cell lung cancer, and (3) the Phase III data readout for zanidatamab in gastroesophageal cancer. Execution on these regulatory and clinical milestones, alongside stabilization of the oncology portfolio and continued growth in neuroscience, will be key indicators of performance.
Jazz Pharmaceuticals currently trades at $115.47, up from $113.05 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).
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