On November 2, 2026 Jazz Pharmaceuticals plc (Nasdaq: JAZZ) reported financial results for the third quarter of 2026 (3Q26).
Schedule your 30 min Free 1stOncology Demo!
Discover why more than 1,500 members use 1stOncology™ to excel in:
Early/Late Stage Pipeline Development - Target Scouting - Clinical Biomarkers - Indication Selection & Expansion - BD&L Contacts - Conference Reports - Combinatorial Drug Settings - Companion Diagnostics - Drug Repositioning - First-in-class Analysis - Competitive Analysis - Deals & Licensing
Schedule Your 30 min Free Demo!
"Our third-quarter performance reflects sustained execution across the business and gives us confidence to raise our full-year total revenue guidance," said Renee Gala, president and chief executive officer of Jazz Pharmaceuticals. "At the same time, we continue to strengthen the drivers of our future growth, with the approval and rapid launch of Ziihera in first-line HER2-positive GEA and the acquisition of Actio, which adds ABS-1230 and deepens our pipeline in rare, refractory epilepsies. Jazz is moving with momentum and urgency to advance practice-changing medicines that deliver meaningful benefit for patients and durable value for shareholders."
Recent Key Highlights
•Achieved total revenues of $1.2 billion in 3Q26, reflecting 10% year-over-year (YoY) growth.
•Received U.S. Food and Drug Administration (FDA) approval and rapidly launched Ziihera-based combinations in first-line (1L) gastroesophageal adenocarcinoma (GEA).
•Presented final analysis from the HERIZON-GEA-01 trial at European Society for Medical Oncology Congress 2026 (ESMO) (Free ESMO Whitepaper), demonstrating sustained survival benefit at three years. Longer follow up of Ziihera plus tislelizumab and chemotherapy showed an improved overall survival (OS) hazard ratio of 0.65, further supporting Ziihera-based combinations as standard-of-care.
•Closed acquisition of Actio Biosciences, Inc. (Actio), adding ABS-1230 (JZP6979) to rare epilepsy portfolio.
•Generated $1.3 billion in cash from operations in the first nine months of 2026.
•Raised 2026 total revenue guidance to a range of $4.775 – $4.85 billion.
Business Updates
Xywav (calcium, magnesium, potassium, and sodium oxybates) oral solution:
•Xywav net product sales increased 12% YoY to $483 million in 3Q26.
•Robust new patient growth drove revenue, with approximately 425 net patient adds in 3Q26. There were approximately 17,550 active patients exiting the quarter, comprised of approximately 11,375 narcolepsy patients and approximately 6,175 idiopathic hypersomnia patients.
•Continued physician and patient demand for the differentiated benefits of low-sodium Xywav.
Epidiolex/Epidyolex (cannabidiol):
•Epidiolex/Epidyolex net product sales decreased 2% YoY to $295 million in 3Q26. The 3Q26 growth rate was negatively affected by lower U.S. gross-to-net deductions in 3Q25 and lower levels of inventory build in 3Q26 due to wholesaler buying patterns.
•The PDUFA target action date for our New Drug Application (NDA) for the oral cannabidiol capsule formulation is April 16, 2027.
Ziihera (zanidatamab-hrii):
•Ziihera net product sales were $21 million in 3Q26.
•Ziihera received FDA approval on August 25, 2026, and was launched promptly for the first-line treatment of adult patients with HER2-positive (HER2+) unresectable locally advanced or metastatic GEA.
•Promising early demand from first full month of 1L GEA launch with ~40% increase in average demand vials per selling day and a threefold increase in new ordering accounts, 80% of which are community based.
•Positive results from the second and final OS analysis for the HERIZON-GEA-01 trial were presented at ESMO (Free ESMO Whitepaper). Mature HERIZON-GEA-01 results showed Ziihera plus chemotherapy delivered statistically significant and clinically meaningful OS benefit. Nearly 40% of patients were alive at three years with Ziihera plus tislelizumab and chemotherapy, irrespective of PD-L1 status, achieving a median OS of 27 months.
•NCCN Clinical Practice Guidelines in Oncology (NCCN Guidelines) for Gastric Cancer, and Esophageal and Esophagogastric Junction Cancers, were updated to include Ziihera (zanidatamab-hrii) in combination with chemotherapy, with and without Tevimbra (tislelizumab-jsgr), as a preferred regimen for first-line treatment of adult patients with HER2+ unresectable locally advanced or metastatic GEA.
Modeyso (dordaviprone):
•Modeyso net product sales were $61 million in 3Q26 with approximately 725 patients having received Modeyso from product launch in August 2025 through the end of 3Q26.
•The company anticipates the OS interim analysis for the event-driven Phase 3 ACTION trial in 1H27, based on the current pace of event accrual.
Zepzelca (lurbinectedin):
•Zepzelca net product sales increased 32% YoY to $104 million in 3Q26, driven by continued uptake of the Zepzelca and atezolizumab combination in the 1L maintenance extensive-stage small-cell lung cancer setting, partially offset by a decline in second-line use.
•On September 30, 2026, the FDA approved the label supplement removing the second-line indication.
Actio Acquisition:
•Completed the Actio acquisition in September 2026, adding ABS-1230 (JZP6979) to rare epilepsy portfolio.
•Potential first-in-class precision therapy for KCNT1-related epilepsy which has demonstrated meaningful seizure reductions in an early clinical proof-of-concept trial in children with KCNT1 epilepsy.
•Currently being evaluated in the ongoing Phase 1b/2a KYRON trial designed to serve as a registrational study to support an NDA submission in the U.S.
•Expect to present initial patient data at a medical meeting in 4Q26.
Capital Structure
In the third quarter of 2026, the company completed a private placement of $1.25 billion aggregate principal amount of 1.875% exchangeable senior notes due 2032 (2032 notes). Concurrent with this transaction, the company repurchased $225 million of its ordinary shares. The company paid for the repurchases with existing cash on hand, and the share repurchases were effected under, and completely exhausted, the company’s share repurchase program announced in July 2024. In October 2026, the board of directors approved a new share repurchase program with no expiration date pursuant to which the company may repurchase its ordinary shares for up to an aggregate purchase price of $500 million, exclusive of any brokerage commissions.
Additionally, in the third quarter, the company amended and extended the company’s Term Loan B, reducing the applicable margin by 50 basis points and extending the maturity by five years to May 2033, which is expected to generate cash interest savings and maintain cash reserves.
Financial Highlights
Three Months Ended
September 30, Nine Months Ended
September 30,
(In millions, except per share amounts) 2026 2025 2026 2025
Total revenues $ 1,243.0 $ 1,126.1 $ 3,520.2 $ 3,069.6
GAAP net income (loss) $ (483.4) $ 251.4 $ 2.5 $ (559.6)
Non-GAAP adjusted net income (loss) $ (250.8) $ 500.7 $ 565.1 $ 101.0
GAAP earnings (loss) per share $ (7.48) $ 4.08 $ 0.04 $ (9.18)
Non-GAAP adjusted earnings (loss) per share $ (3.88) $ 8.13 $ 8.23 $ 1.63
GAAP net loss and non-GAAP adjusted net loss in 3Q26 included acquired in-process research and development (IPR&D) expense of $754 million representing the value allocated to ABS-1230 (JZP6979) in the Actio acquisition, which impacted our results by $11.32 per share and $11.03 per share on a GAAP and non-GAAP adjusted basis, respectively.
Reconciliations of applicable GAAP reported to non-GAAP adjusted information are included at the end of this press release.
Total Revenues
Three Months Ended
September 30, Nine Months Ended
September 30,
(In millions) 2026 2025 2026 2025
Xywav $ 482.8 $ 431.4 $ 1,362.2 $ 1,191.5
Xyrem 31.2 35.7 92.9 108.3
Sleep 514.0 467.1 1,455.1 1,299.8
Epidiolex/Epidyolex 295.4 302.6 837.3 772.0
Epilepsy 295.4 302.6 837.3 772.0
Zepzelca 104.4 79.3 311.2 216.8
Rylaze/Enrylaze 106.3 99.9 309.5 294.8
Defitelio/defibrotide 60.7 51.7 170.1 140.5
Modeyso 61.1 11.0 150.7 11.5
Vyxeos 34.0 37.6 92.0 112.0
Ziihera 20.6 8.3 49.3 16.3
Oncology 387.1 287.8 1,082.8 791.9
Other — 6.9 2.7 25.7
Product sales, net 1,196.5 1,064.4 3,377.9 2,889.4
High-sodium oxybate AG royalty revenue 38.4 52.9 116.9 155.9
Other royalty and contract revenues 8.1 8.8 25.4 24.3
Total revenues $ 1,243.0 $ 1,126.1 $ 3,520.2 $ 3,069.6
Total revenues increased 10% YoY in 3Q26 primarily due to higher Xywav, Zepzelca and Ziihera net product sales and the inclusion of Modeyso net product sales, following FDA approval in August 2025.
Operating Expenses and Income Tax Expense (Benefit)
Three Months Ended
September 30, Nine Months Ended
September 30,
(In millions, except percentages) 2026 2025 2026 2025
GAAP:
Cost of product sales $ 110.6 $ 128.9 $ 361.1 $ 349.8
Gross margin on total revenues 91.1% 88.6% 89.7% 88.6%
Selling, general and administrative $ 407.9 $ 530.6 $ 1,149.8 $ 1,403.0
% of total revenues 32.8% 47.1% 32.7% 45.7%
Research and development $ 211.9 $ 198.2 $ 615.4 $ 568.8
% of total revenues 17.0% 17.6% 17.5% 18.5%
Acquired in-process research and development $ 754.2 $ 42.5 $ 831.2 $ 947.9
Gain on sale of priority review voucher $ — $ — $ (122.8) $ —
Income tax expense (benefit) $ 24.5 $ (242.4) $ 48.7 $ (277.4)
Effective tax rate (5.3)% N/A(1) 94.9% 33.2%
Three Months Ended
September 30, Nine Months Ended
September 30,
(In millions, except percentages) 2026 2025 2026 2025
Non-GAAP adjusted:
Cost of product sales $ 105.1 $ 83.2 $ 290.2 $ 229.2
Gross margin on total revenues 91.5% 92.6% 91.8% 92.5%
Selling, general and administrative $ 328.0 $ 460.1 $ 979.7 $ 1,242.7
% of total revenues 26.4% 40.9% 27.8% 40.5%
Research and development $ 188.9 $ 169.9 $ 546.1 $ 496.7
% of total revenues 15.2% 15.1% 15.5% 16.2%
Acquired in-process research and development $ 754.2 $ 42.5 $ 831.2 $ 947.9
Income tax expense (benefit) $ 72.1 $ (178.8) $ 187.7 $ (100.1)
Effective tax rate (40.3)% (55.5)% 24.9% N/A(1)
_________________________
1.Not a meaningful metric due to minimal profit before tax in this period.
Changes in operating expenses and income tax expense (benefit) in 3Q26 over the prior year period are primarily due to the following:
•Cost of product sales, on a GAAP basis, decreased in 3Q26, primarily due to the full recognition of the inventory fair value step-up in the second quarter of 2026, partially offset by higher royalty expenses, driven by higher revenues of Modeyso and Zepzelca. Cost of product sales, on a non-GAAP adjusted basis, increased in 3Q26, primarily due to the higher royalty expenses.
•Selling, general and administrative (SG&A) expenses, on a GAAP and non-GAAP adjusted basis, decreased in 3Q26, primarily due to litigation settlements of $152 million in 3Q25, partially offset, on a GAAP basis, by restructuring expenses of $34 million included in 3Q26.
•Research and development (R&D) expenses, on a GAAP and non-GAAP adjusted basis, increased in 3Q26, reflecting continued investment in our pipeline portfolio and evidence generation.
•Acquired IPR&D of $754 million, on a GAAP and non-GAAP adjusted basis, in 3Q26, represents the value allocated to ABS-1230 (JZP6979) in the Actio acquisition.
•We recognized an income tax expense, on a GAAP and non-GAAP adjusted basis, in 3Q26 compared to an income tax benefit in 3Q25, which included a benefit of $206 million on recognition of certain U.S. federal and state deferred tax assets acquired through our acquisition of Chimerix.
Cash Flow and Balance Sheet
As of September 30, 2026, cash, cash equivalents and investments were $2.9 billion, and the outstanding principal balance of the company’s long-term debt was $5.6 billion. In addition, the company had undrawn borrowing capacity under a revolving credit facility of $885 million. For the nine months ended September 30, 2026, the company generated $1.3 billion of cash from operations reflecting strong business performance and continued financial discipline.
2026 Financial Guidance
Jazz Pharmaceuticals has updated its full-year financial guidance, as shown in the table below, including raising its full-year 2026 revenue guidance, increasing its GAAP SG&A expense guidance to include restructuring expenses, and updating its effective tax rate guidance range to reflect the impact of the acquired IPR&D expense associated with the Actio acquisition.
(Press release, Jazz Pharmaceuticals, NOV 2, 2026, View Source [SID1234674033])