PALO ALTO, Calif., Nov. 6 Jazz Pharmaceuticals,Inc. (Nasdaq: JAZZ) today announced financial results for the quarter endedSeptember 30, 2007.
Jazz Pharmaceuticals' net loss for the third quarter of 2007 was$19.4 million, compared to net income of $7.7 million for the third quarter of2006. Net income in the quarter ended September 30, 2006 included$31.6 million of gain on extinguishment of a development financing obligationin connection with a terminated development program.
Total revenues for the quarter ended September 30, 2007 were$21.5 million, compared to $11.5 million for the quarter ended September 30,2006. The increase in total revenue resulted primarily from $7.5 million ofcontract revenue related to achievement of a clinical enrollment milestone inthe Phase III development program of JZP-6 for fibromyalgia syndrome.Xyrem(R) net sales were $9.6 million in the quarter ended September 30, 2007,compared with $7.6 million for the same quarter of 2006. For the nine monthsended September 30, 2007, total revenues increased to $49.8 million, comparedto $32.4 million for the nine months ended September 30, 2006.
Research and development expenses for the quarter ended September 30,2007 were $17.0 million, compared to $14.7 million for the quarter endedSeptember 30, 2006.
Selling, general and administrative expenses for the quarter endedSeptember 30, 2007 were $18.1 million, compared to $12.9 million for thequarter ended September 30, 2006. The increase was primarily due to spendingin preparation for the anticipated launch of Luvox(R) CR (fluvoxamine maleateextended release capsules), increased headcount and higher expenses to supportthe sales force, offset in part by lower legal fees.
Jazz Pharmaceuticals' unrestricted cash, cash equivalents and marketablesecurities balance as of September 30, 2007 was $130.9 million. During thequarter ended September 30, 2007, net cash used in operating activities was$15.4 million.
"As our commercial organization ramps up for the anticipated commerciallaunch of Luvox CR in early 2008, we have also made progress in all four ofour most advanced clinical development programs during the past few months,"said Samuel R. Saks, M.D., Chief Executive Officer. "We continue to makeimportant progress on our development programs for the treatment offibromyalgia, recurrent acute repetitive seizures, restless legs syndrome andpartial epilepsy."
Jazz Pharmaceuticals will host an investor conference call and live audiowebcast to discuss its quarterly results on November 6, 2007 at 5:00 p.m.Eastern Time/2:00 p.m. Pacific Time. The live webcast and press release maybe accessed on Jazz Pharmaceuticals' website athttp://www.JazzPharmaceuticals.com. Please connect to the website prior tothe start of the conference call to ensure adequate time for any softwaredownloads that may be necessary. An archived version of the webcast will beavailable through November 20, 2007. Investors may participate in theconference call by dialing 1-866-770-7120 in the U.S., or 1-617-213-8065outside the U.S., and entering passcode 57344568. A replay of this call willbe available until November 20, 2007 at 1-888-286-8010 (U.S.), or1-617-801-6888 (international), using the passcode 41294935.
About Jazz Pharmaceuticals, Inc.
Jazz Pharmaceuticals is a specialty pharmaceutical company focused onidentifying, developing and commercializing innovative products to meet unmetmedical needs in neurology and psychiatry. For further information seehttp://www.JazzPharmaceuticals.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Actof 1995
This press release contains forward-looking statements, including, but notlimited to, statements related to the potential regulatory approval andanticipated commercial launch of Luvox CR, the initiation of additionalclinical