Q2 2026 Jazz Pharmaceuticals PLC Earnings Call Transcript
Key Points
- Jazz Pharmaceuticals PLC (JAZZ) delivered record quarterly revenue of $1.2 billion, a 16% year-over-year increase, driven by strong performance across its diversified portfolio.
- The company raised its full-year 2026 revenue guidance to $4.60-$4.75 billion, reflecting confidence in sustained momentum, particularly for Xywav, which is now expected to achieve double-digit growth.
- Zanidatamab is poised for a major launch with an August 25 PDUFA date for first-line HER2-positive metastatic GEA, supported by unprecedented median overall survival data exceeding two years and high commercial readiness.
- Xywav continues to demonstrate strong durability and growth, with approximately 525 net patient additions in Q2, bringing total active patients to over 17,125, a 12% year-over-year increase, despite generic competition.
- The oncology portfolio showed exceptional strength, with Zepzelca sales growing 42% year-over-year to $106 million, driven by rapid adoption in the first-line maintenance setting, and Ziihera achieving over 50% of the addressable market in BTC.
- Epidiolex delivered another outstanding quarter with 16% revenue growth to $292 million, fueled by robust demand and successful expansion into the adult and long-term care segments.
- The company is advancing a robust pipeline, including initiating three new clinical trials for Epidiolex in treatment-resistant seizures and submitting an NDA for a novel capsule formulation to broaden its use.
- Jazz Pharmaceuticals PLC (JAZZ) generated strong operating cash flow of $824 million in the first half of 2026 and maintains a solid financial position with $2.2 billion in cash, supporting continued investment in R&D and business development.
- The company anticipates a decline in Zepzelca's second-line business and will submit a labeling supplement to remove the second-line indication, which could accelerate the erosion of that revenue stream.
- Jazz Pharmaceuticals PLC (JAZZ) faces potential future competition in the idiopathic hypersomnia market from emerging products like Lumryz and orexin agonists, which could impact Xywav's long-term growth trajectory.
- The non-GAAP adjusted gross margin declined slightly year-over-year due to higher sales of Zepzelca and Modeyso, which carry third-party royalties, potentially pressuring profitability.
- The company's non-GAAP adjusted effective tax rate was moderately higher than full-year guidance due to shifts in the geographic mix of income and expenses.
- The upcoming top-line results from the second interim OS analysis for the zanidatamab doublet arm in GEA are still pending, and while confidence is high, the outcome remains uncertain.
- The Modeyso Phase 3 ACTION trial's overall survival interim analysis has been pushed to the first half of 2027, indicating a longer timeline for potential frontline approval.
- The company's share count guidance was increased to 69-70 million shares due to the accounting effect of a higher stock price on convertible notes, which could dilute earnings per share.
Good day and thank you for standing by. Welcome to Jazz Pharmaceuticals' second-quarter 2026 earnings conference call. (Operator Instructions)
I will now hand the conference over to your first speaker today, John Bluth, VP and Head of Investor Relations. Please go ahead.
Thank you and good afternoon, everyone. Today, Jazz Pharmaceuticals reported its second-quarter 2026 financial results. The slide presentation accompanying this webcast is available on the Investor section of our website, along with the press release and quarterly report on Form 10-Q for the second quarter ended June 30, 2026. On the call today are Renee Galá, President and Chief Executive Officer; Sam Pearce, Chief Commercial Officer; Robert Iannone, Global Head of R&D and Chief Medical Officer; and Phil Johnson, Chief Financial Officer.
On slide 2, I'd like to remind you that today's webcast includes forward-looking statements such as those related to our future financial and operating
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