The biotech company announced its plan to acquire GW in February for $7.2 billion. GW Pharma makes seizure treatment Epidiolex, the first and only drug derived directly from the cannabis plant to gain Food and Drug Administration approval.
Together, Jazz Pharma expects to become a leader in neuroscience. For the full year, the company expects neuroscience products to account for around 70% of total revenue. Chief Executive Bruce Cozadd said to expect “significant revenue growth and diversification in 2022.”
We “are poised for two additional product launches this year and look forward to completing the acquisition of GW Pharmaceuticals this month, all key milestones in our transformation to an innovative biopharmaceutical company and neuroscience leader,” he said in a written statement.
In after-hours trading on the stock market today, Jazz stock popped 3% near 165. That reversed a 3% decline to 160.20 during the regular session. Jazz stock is currently forming a flat base with a buy point at 178.74.
Jazz Stock Pops On Looming GW Buyout
Overall, total revenue climbed nearly 14% to $607.58 million in the first quarter. But that narrowly missed Jazz stock analysts’ forecast for $609.3 million in sales.
Adjusted income of $3.92 per share rocketed 771% and beat expectations for $3.73 per share. The massive bottom-line growth is due to the inclusion of upfront and milestone payments in adjusted earnings measures. Jazz made that reporting change in 2020.
Sales of narcolepsy treatment Xyrem fell nearly 18% to $335.55 million in the first quarter. Jazz noted that was due to the launch of Xywav, a new narcolepsy treatment from Jazz. Total oncology revenue sparked 51% to $178.2 million on robust demand for Zepzelca, a lung cancer treatment.
For the year, Jazz expects $2.55 billion to $2.7 billion in revenue vs. Jazz stock analysts’ forecast for $2.66 billion in revenue. The company also called for $2.54-$2.69 billion in full-year product sales — which excludes other sources of revenue.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
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