Jazz Pharmaceuticals (JAZZ) Morgan Stanley 24th Annual Global Healthcare Conference summary

Oncology portfolio performance and strategy

• Oncology revenue grew 32% year-over-year, surpassing $1 billion in 2025, driven by innovative therapies and three recent launches, including a frontline GEA launch.

• Focus is on increasing HER2-directed therapy use in GEA, aiming to treat all eligible patients and replace trastuzumab based on strong data for zanidatamab.

• Peak sales guidance for zanidatamab was raised to $3–$5 billion, reflecting confidence in GEA, BTC, and expansion into breast, lung, and colorectal cancers.

• Commercial infrastructure is in place for GEA, with no significant barriers to ramp-up, and established programs supporting access and education.

• Early launch data for zanidatamab is promising, with expectations for rapid uptake and NCCN guideline inclusion anticipated soon.

Competitive landscape and product differentiation

• AI is leveraged to accelerate drug development and enhance customer insights, supporting agile decision-making.

• Current HER2 ADC and bispecific competitors are not seen as immediate threats, with their data and approvals expected later in the decade.

• Zepzelca has seen over 40% growth, mainly from new frontline indications, and is positioned to compete with emerging therapies like tarlatamab.

• Modeyso's launch is progressing well, with focus on patient finding and diagnostic testing; peak sales are projected at $500 million+ in the U.S.

• RYLAZE is considered a stable business, with ongoing efforts to optimize treatment timing for hypersensitivity cases.

Financial outlook and capital allocation

• Full-year revenue guidance was raised to $460–$475 million, driven by strong portfolio performance in sleep, epilepsy, and oncology.

• Cash generation remains robust, with $2.2 billion in cash and $1 billion recently raised, supporting ongoing investment and business development.

• Recent acquisition of Actio strengthens the epilepsy portfolio, with continued focus on smart business development across sleep, epilepsy, and oncology.

• No fixed target leverage disclosed, but net leverage is low, and capital allocation prioritizes commercial and R&D investment.

• Flexibility in business development allows shifting focus between oncology and epilepsy based on market conditions.