Jazz Pharmaceuticals Announces Fourth Quarter and Full Year 2010 Results

Jazz Pharmaceuticals, Inc. (Nasdaq: JAZZ) today announced financial results for the fourth quarter and full year ended December 31, 2010. Total revenues for the fourth quarter of 2010 were $53.4 million, compared to $38.3 million for the fourth quarter of 2009. Full year 2010 revenues were $173.8 million, up 35 percent compared to revenues of $128.4 million for 2009. GAAP net income for the fourth quarter of 2010 was $24.5 million, or $0.56 per diluted share, compared to $5.7 million, or $0.17 per diluted share, for the fourth quarter of 2009. GAAP net income for 2010 was $32.8 million, or $0.83 per diluted share, compared to a 2009 GAAP net loss of $6.8 million, or $0.23 per diluted share. Adjusted net income for the fourth quarter of 2010 was $27.2 million, or $0.63 per diluted share, compared to $10.8 million, or $0.33 per diluted share, for the fourth quarter of 2009. Adjusted net income for 2010 was $61.0 million, or $1.55 per diluted share, compared to a 2009 adjusted net loss of $1.5 million, or $0.05 per diluted share. A reconciliation of GAAP net income (loss) to adjusted net income (loss) and the related per diluted share amounts is included with this press release.Net sales of Xyrem® (sodium oxybate) oral solution increased 36 percent to $42.9 million for the fourth quarter of 2010, compared to net sales of $31.6 million for the fourth quarter of 2009. Xyrem net sales for 2010 increased 47 percent to $142.6 million, compared to $96.8 million in net sales for 2009. Net sales of once-daily Luvox CR® (fluvoxamine maleate) increased to $9.4 million for the fourth quarter of 2010, compared to $5.7 million for the fourth quarter of 2009. Luvox CR net sales for 2010 increased to $27.4 million, compared to 2009 net sales of $18.3 million. Both fourth quarter and full year 2010 net sales of Luvox CR include $2.0 million of revenue recorded as a result of a change in the timing of when revenue is recognized; the company now records Luvox CR sales upon shipment to distributors net of estimated returns. The profit associated with this change has been excluded from the company's fourth quarter and full year 2010 adjusted net income."In 2010, our first full year of profitability, our progress included strengthening our balance sheet, enhancing our commercial business management team, significantly increasing Xyrem sales, and broadening our patent protection for sodium oxybate," said Bruce Cozadd, chairman and chief executive officer of Jazz Pharmaceuticals. "We look forward to improving our performance in 2011, as we continue to grow and protect our Xyrem business and advance our intranasal clonazepam product candidate for acute repetitive seizures in epilepsy patients."Research and development expenses for the fourth quarter of 2010 were $4.1 million, compared to $6.3 million for the fourth quarter of 2009. Research and development expenses in 2010 were $25.6 million, compared to $36.6 million for 2009. Selling, general and administrative expenses for the fourth quarter of 2010 were $17.1 million, compared to $15.7 million for the fourth quarter of 2009. In 2010, selling, general and administrative expenses were $69.0 million, compared to $58.7 million for 2009. Interest expense for the fourth quarter of 2010 was $1.1 million, compared to $5.8 million for the prior year period. Interest expense in 2010 was $12.7 million, compared to $22.8 million in 2009. As of December 31, 2010, cash and cash equivalents were $44.8 million, an increase from $22.9 million at September 30, 2010.