Jazz Pharmaceuticals (JAZZ) this afternoon reported third-quarter earnings and revenue below analysts' estimates, sending shares down nearly 5% in Tuesday's extended trading session.
Adjusted earnings of $2.57 per share rose from $2.52 a share a year ago, but missed the FactSet consensus of $2.61.
Revenue was up 9.8% year-over-year to $374.2 million in the quarter, though analysts were looking for $389.3 million. Revenue growth was driven by an 18% uptick in sales of Jazz's narcolepsy treatment Xyrem and a 43% increase in sales of its Defitelio/Defibroti treatment.
Sales of the company's Erwinaze/Erwinase treatment for patients with acute lymphoblastic leukemia were down 24% in the period due a supply interruption in the U.S.
Jazz continues to expect full-year adjusted earnings between $9.90 and $10.30 a share on revenue between $1.485 billion and $1.530 billion. The FactSet consensus is for earnings of $10.08 a share on $1.507 billion for the year.
Throughout the next three to five years, research and development spending is expected to account for an increasing amount of sales, "assuming we've got the right programs to invest in," CEO Bruce Cozadd noted on the company's earnings conference call.
Research and development expenses of $39 million made up 10.3% of total revenue in the most recent period.
"We remain focused on executing on opportunities to drive organic growth of key products and advancing our existing development pipeline all while further broadening our future growth prospects by continuing to increase the depth and breadth of our R&D pipeline and diversify our portfolio through corporate development," CFO Matthew Young said on the call.