Jazz Pharmaceuticals PLC (NASDAQ: JAZZ) stock rose over 8% in the pre market session of Feb 27th, 2019 (Source: Google finance) after the company posted better than expected results for the fourth quarter of FY 18. As of December 31, 2018, JAZZ’s cash, cash equivalents and investments were $824.6 million and the outstanding principal balance of the company’s long-term debt was $1.8 billion. In 2018, the company had generated $798.9 million of cash from operations, received a $50.0 million upfront payment for the sale of rights to Prialt, purchased a priority review voucher for $110.0 million and used $523.7 million to repurchase shares.
JAZZ in the fourth quarter of FY 18 has reported the adjusted earnings per share of $3.64, beating the analysts’ estimates for the adjusted earnings per share of $3.02, as per the analysts polled by FactSet. The company had reported the adjusted revenue growth of 17 percent to $476 million in the fourth quarter of FY 18, beating the analysts’ estimates for revenue of $460 million.
Meanwhile, in January 2019, the company and Codiak BioSciences, Inc. has signed a strategic collaboration focused on the research, development and commercialization of exosome therapeutics to treat cancer, including an exclusive license for five targets to be developed using Codiak’s exosome platform. In January 2019, the German Institute for the Hospital Remuneration System awarded Vyxeos NUB-1 status designation. The New Diagnostic and Therapeutic Methods (NUB) process opens the path for negotiations between hospitals and health insurers for the reimbursement of new medical treatments in the German system. In February 2019, Porton Biopharma Limited (PBL) delivered a notice of termination of the Erwinaze license and supply agreement, resulting in the expiration of the term of the agreement on December 31, 2020. If the company and PBL do not reach a new agreement to continue their commercial relationship beyond 2020, the company would retain the right to sell certain Erwinaze inventory for a 12 month period following contract expiration, but would otherwise lose its right to commercialize Erwinaze after December 31, 2020.
Additionally, in 2018, the company repurchased approximately 3,530,000 ordinary shares under the company’s share repurchase program at an average cost of $148.33 per ordinary share. In November and December 2018, the company has increased the existing share repurchase program by $320.0 million and $400.0 million, respectively.
For FY 19, Jazz expects revenue to be between $2.05 billion and $2.13 billion. Non-GAAP adjusted net income per diluted share in 2019 is expected to be in the range of $14.30 – $15.00.