Jazz Pharmaceuticals Surprises With Q4 Sales: A Deep Dive Into The Biotech Giant's Strong Performance

Jazz Pharmaceuticals (NASDAQ:JAZZ) has surprised investors with its strong Q4 sales performance, reporting total revenues of $1.1 billion, representing a 6% year-over-year growth. This impressive result was driven by several key factors, including the robust performance of its flagship products Xywav and Epidiolex, as well as the approval and launch of Ziihera in 2L HER2+ (IHC3+) BTC. Let's delve into the details of Jazz Pharmaceuticals' Q4 sales performance and the factors contributing to this surprise.



Xywav's Strong Performance

Xywav, a calcium, magnesium, potassium, and sodium oxybates oral solution, was a significant contributor to Jazz Pharmaceuticals' Q4 sales growth. Net product sales for Xywav increased by 19% to $401.0 million in Q4 2024 compared to the same period in 2023. This growth can be attributed to several factors:

1. Net patient adds: Xywav experienced meaningful net patient adds in the fourth quarter of 2024, with approximately 525 new patients. This increase contributed to the overall growth in revenues.
2. Market leadership: Xywav is the only low-sodium oxybate, the #1 branded treatment for narcolepsy, and the only FDA-approved therapy to treat IH. This market leadership position has contributed to its revenue growth.
3. Growth in active patient base: The increase in the active patient base, from approximately 14,150 patients exiting 4Q24 to 14,675 patients, also contributed to the revenue growth.

Epidiolex's Continued Growth

Epidiolex, an Epidiolex/Epidyolex (cannabidiol) product, also contributed to Jazz Pharmaceuticals' Q4 sales growth. Net product sales for Epidiolex/Epidyolex increased by 14% to $275.0 million in Q4 2024 compared to the same period in 2023. The drug's approval in more than 35 countries outside the U.S. and its demonstrated benefits beyond seizure control contributed to its growth.

Oncology Revenues Growth

Oncology revenues grew by 9% year-over-year in 2024, surpassing $1.1 billion. This growth was driven by the approval and launch of Ziihera in 2L HER2+ (IHC3+) BTC, as well as the potential practice-changing results from the Phase 3 IMforte trial for Zepzelca in 1L ES-SCLC.

Ziihera's Impact on Oncology Portfolio and Revenue Growth Prospects

The approval and launch of Ziihera (zanidatamab-hrii) in 2L HER2+ (IHC3+) BTC have significantly impacted Jazz Pharmaceuticals' oncology portfolio and overall revenue growth prospects. With the addition of Ziihera, Jazz Pharmaceuticals' oncology portfolio now includes Zepzelca (lurbinectedin) for metastatic small cell lung cancer or with disease progression on or after platinum-based chemotherapy, and Ziihera (zanidatamab-hrii) for 2L HER2+ (IHC3+) BTC. This expansion provides Jazz with a broader range of oncology products to address different cancer types and stages, potentially increasing market share and revenue.

The launch of Ziihera has contributed to the 9% year-over-year growth in oncology revenues in 2024, surpassing $1.1 billion. This growth is expected to continue in 2025, with total revenue guidance of $4.15 - $4.40 billion, representing 5% growth at the midpoint. The addition of Ziihera's sales to the oncology portfolio has strengthened Jazz's overall revenue growth prospects.

In conclusion, Jazz Pharmaceuticals' Q4 sales performance was driven by the strong performance of Xywav and Epidiolex, as well as the approval and launch of Ziihera in 2L HER2+ (IHC3+) BTC. The company's diversified portfolio, spanning sleep, epilepsy, and oncology, with each annualizing at over $1 billion, continued to drive growth. With a strong pipeline and disciplined capital allocation, Jazz Pharmaceuticals is well-positioned to deliver top- and bottom-line growth in 2025 and drive long-term shareholder value.