Jazz Pharmaceuticals Reports Full Year And Fourth Quarter 2012 Financial Results

   Jazz Pharmaceuticals Reports Full Year And Fourth Quarter 2012 Financial
                                   Results

  PR Newswire

  DUBLIN, Feb. 26, 2013

- Record Total Revenues of $586 Million in 2012 -

- Company Provides Guidance for Full Year 2013 Total Revenues of $805 to $835
Million -

DUBLIN, Feb. 26, 2013 /PRNewswire/ -- Jazz Pharmaceuticals plc (Nasdaq: JAZZ)
today announced financial results for the full year and fourth quarter ended
December 31, 2012.

"2012 was a transformational year, with the acquisitions of Azur Pharma and
EUSA Pharma expanding our business and allowing us to improve more patients'
lives," said Bruce Cozadd, chairman and chief executive officer of Jazz
Pharmaceuticals plc. "In 2013, we anticipate continued strong growth in
revenues and earnings driven by our core products. In addition, we plan to
pursue business development opportunities for additional specialty products
that leverage our unique expertise and infrastructure."

Adjusted net income for 2012 was $290.4 million, or $4.82 per diluted share,
compared to 2011 adjusted net income of $164.9 million, or $3.52 per diluted
share. Adjusted net income for the fourth quarter of 2012 was $93.9 million,
or $1.53 per diluted share, compared to $55.4 million, or $1.17 per diluted
share, for the fourth quarter of 2011.

GAAP income from continuing operations for 2012 was $261.1 million, or $4.34
per diluted share, compared to $125.0 million, or $2.67 per diluted share for
2011. GAAP income from continuing operations for the fourth quarter of 2012
was $166.2 million, or $2.71 per diluted share, compared to $37.5 million, or
$0.79 per diluted share, for the fourth quarter of 2011.

GAAP net income for 2012 was $288.6 million, or $4.79 per diluted share,
compared to $125.0 million, or $2.67 per diluted share for 2011. GAAP net
income for the fourth quarter of 2012 was $200.6 million, or $3.28 per diluted
share, compared to $37.5 million, or $0.79 per diluted share, for the same
period of 2011. GAAP net income for the full year and fourth quarter of 2012
included the results of the discontinued women's health business and the
reversal of the valuation allowance against substantially all of the company's
U.S. deferred tax assets as discussed below. Also, GAAP net income in the 2012
periods reflected various acquisition-related expenses, including transaction,
integration and restructuring expenses, as well as certain non-cash expenses.
A reconciliation of applicable GAAP to non-GAAP adjusted information is
included with this press release.

2012 Revenues and Product Sales

Total revenues for the full year ended December 31, 2012 were $586.0 million,
an increase of 115% over total revenues of $272.3 million for the year ended
December 31, 2011. Total revenues for the fourth quarter of 2012 were $183.7
million, compared to $83.5 million for the fourth quarter of 2011. Increases
in total revenues for both the year and the quarter ended December 31, 2012
were driven primarily by inclusion of revenues from the acquired Azur Pharma
and EUSA Pharma businesses and increased net sales of Xyrem® (sodium oxybate)
oral solution.

Total revenues for the full year and quarter ended December 31, 2012 included
net sales, royalties and contract revenues. A table showing pro forma net
sales for the full year and fourth quarter 2012 compared to 2011 is included
in this press release.

Net sales for the full year and fourth quarter of 2012 were as follows:

  *Xyrem:  2012 Xyrem sales increased by 62% to $378.7 million, compared to
    $233.3 million during the prior year. Net sales of Xyrem were $113.5
    million for the fourth quarter of 2012, compared to net sales of $71.8
    million for the fourth quarter of 2011. During the fourth quarter of
    2012, the average number of active Xyrem patients was approximately
    10,450.
  *Erwinaze®/Erwinase® (asparaginase  Erwinia chrysanthemi ): 2012
    worldwide net sales of Erwinaze/Erwinase from the EUSA Pharma acquisition
    closing date of June 12, 2012 were $72.1 million. Full year pro forma net
    sales of Erwinaze/Erwinase were $131.9 million. 2012 fourth quarter
    worldwide net sales of Erwinaze/Erwinase were $34.4 million. 
  *Prialt® (ziconotide) intrathecal infusion:  2012 net sales of Prialt were
    $26.4 million, including $4.6 million related to a supply agreement to
    provide Prialt to Eisai Co. for distribution and sale in Europe recorded
    in the first quarter of 2012. 2012 fourth quarter net sales of Prialt
    were $5.9 million.
  *Psychiatry Products :  2012 net sales of the company's psychiatry
    products, including once-daily Luvox CR® (fluvoxamine maleate), FazaClo®
    (clozapine, USP) HD and FazaClo LD, were $76.5 million. 2012 fourth
    quarter net sales of the psychiatry products were $18.0 million.
  *Other:  Net sales of other products for the full year and fourth quarter
    of 2012 were $26.9 million and $10.2 million, respectively. "Other"
    includes products acquired in the EUSA Pharma and Azur Pharma transactions
    that are not mentioned above.

Operating Expenses and Other

Operating expenses for 2012 increased to $388.1 million compared to $144.4
million for 2011. Operating expenses for the fourth quarter of 2012 increased
to $116.3 million compared to $45.9 million for the same period of 2011.
Operating expenses increased over the prior year for the following reasons:

  *Cost of product sales for 2012 was $78.4 million compared to $13.9 million
    for 2011. Cost of product sales for the fourth quarter of 2012 was $25.8
    million compared to $3.9 million for the same period of 2011. The
    increases in both periods were due primarily to higher net sales, with the
    full year 2012 cost of product sales also reflecting $16.8 million of
    acquisition accounting inventory fair value step-up adjustments.
  *Gross margin for 2012, as a percentage of product sales, was 86.5%
    compared to 94.8% for 2011. Gross margin for the fourth quarter of 2012,
    as a percentage of product sales, was 85.8% compared to 95.2% for 2011.
    Our gross margin percentage in 2012 as compared to 2011 was lower
    primarily due to the effect of the acquisition accounting inventory fair
    value step-up adjustments recorded as cost of product sales and also due
    to the impact of changes in our product mix in 2012.
  *Selling, general and administrative and research and development expenses
    for 2012 totaled $244.4 million compared to $123.1 million for 2011.
    Selling, general and administrative and research and development expenses
    for the fourth quarter of 2012 totaled $68.7 million compared to $40.1
    million for the same period of 2011. The increases in both periods
    reflected higher headcount and related expenses, sales and promotional
    expenses, professional fees and transaction, integration and restructuring
    costs due primarily to the expansion of our business as a result of the
    Azur Pharma and EUSA Pharma transactions.
  *Intangible asset amortization for the full year and fourth quarter of 2012
    was $65.4 million and $21.9 million, respectively, primarily related to
    the company's expanded product portfolio.

Full year and fourth quarter of 2012 net interest expense was $16.9 million
and $7.7 million, respectively. As of December 31, 2012, the balance of cash
and cash equivalents was $387.2 million and the remaining balance on the term
loan was $456.8 million.

During the fourth quarter of 2012, the company reversed the valuation
allowance against substantially all of its U.S. deferred tax assets, since the
realization of those assets was deemed to be more likely than not, and
recorded a non-recurring income tax benefit of $104.2 million. This tax
benefit was reflected in the company's GAAP results for the fourth quarter and
full year of 2012.

In addition, during the fourth quarter of 2012, the company sold its women's
health business for $97.6 million and recorded a non-recurring gain of $35.2
million. Financial results from the women's health business are reported as
discontinued operations for all periods presented.

2013 Financial Guidance

Jazz Pharmaceuticals is providing the following 2013 guidance:

Revenues                                      $805-$835 million
Total Net Product Sales                       $798-$827 million
-Xyrem Net Sales-Erwinaze/Erwinase
Net Sales                              $530-$540 million$155-$165 million
Adjusted Gross Margin %(1, 3)                        87-89%
Adjusted Combined SG&A and R&D
Expenses(2,3)                                  $260-$275 million
GAAP Net Income Per Diluted Share                 $3.17-$3.47
Adjusted Net Income Per Diluted
Share(3)                                          $5.70-$5.90
1.                                 Excludes $4 million of acquisition
                                   accounting inventory fair value step-up
                                   and $2 million in share-based compensation
                                   expense from estimated GAAP gross margin
                                   of 86-88%.
2.                                 Excludes $46-$48 million of share-based
                                   compensation expense, $15 million related
                                   to a change in fair value of contingent
                                   consideration, $4 million of depreciation
                                   expense and $1-2 million of transaction,
                                   integration and restructuring costs from
                                   estimated GAAP combined SG&A and R&D
                                   expenses of $325-$340 million.
3.                                 See "Non-GAAP Financial Measures" below.
                                   A reconciliation ofnon-GAAP adjusted
                                   guidance measures shown aboveis included
                                   with this press release.

Conference Call Details

Jazz Pharmaceuticals will host an investor conference call and live audio
webcast today at 4:30 p.m. EST (9:30 p.m. GMT) to provide a business and
financial update and discuss 2012 full year and fourth quarter results and
2013 financial guidance. The live webcast may be accessed from the Investors &
Media section of the company's website at www.jazzpharmaceuticals.com . Please
connect to the website prior to the start of the conference call to ensure
adequate time for any software downloads that may be necessary. Investors may
participate in the conference call by dialing +1-800-920-8624 in the U.S., or
+1-617-597-5430 outside the U.S., and entering passcode 75109778.

An archived version of the webcast will be available for at least one week in
the Investors & Media section of the Jazz Pharmaceuticals website at
www.jazzpharmaceuticals.com .

About Jazz Pharmaceuticals

Jazz Pharmaceuticals plc is a specialty biopharmaceutical company focused on
improving patients' lives by identifying, developing and commercializing
innovative products that address unmet medical needs. The company has a
diverse portfolio of products in the areas of narcolepsy, oncology, pain and
psychiatry. The company's U.S. marketed products in these areas include:
Xyrem® (sodium oxybate) oral solution, Erwinaze® (asparaginase Erwinia
chrysanthemi ), Prialt® (ziconotide) intrathecal infusion, FazaClo®
(clozapine, USP) HD, FazaClo LD, and Luvox CR® (fluvoxamine maleate). Outside
of the U.S., Jazz Pharmaceuticals also has a number of products marketed by
its EUSA Pharma division. For further information, see
www.jazzpharmaceuticals.com .

Non-GAAP Financial Measures

To supplement Jazz Pharmaceuticals' financial results and guidance presented
on a GAAP basis, the company uses certain non-GAAP adjusted financial
measures. The company believes that these non-GAAP financial measures are
helpful in understanding its past financial performance and potential future
results, particularly in light of the effect of various acquisition and
divestiture transactions effected by the company during 2012. They are not
meant to be considered in isolation or as a substitute for comparable GAAP
measures, and should be read in conjunction with the consolidated financial
statements prepared in accordance with GAAP. Jazz Pharmaceuticals' management
regularly uses these supplemental non-GAAP financial measures internally to
understand, manage and evaluate its business and make operating decisions.
Compensation of executives is based in part on the performance of the
company's business based on certain of these non-GAAP measures. In addition,
Jazz Pharmaceuticals believes that the use of these non-GAAP measures enhances
the ability of investors to compare its results from period to period. The
non-GAAP adjusted financial measures as used by Jazz Pharmaceuticals in this
press release may be calculated differently from, and therefore may not be
directly comparable to, similarly titled measures used by the company's
competitors and other companies.

As used in this press release, (i) the historical adjusted net income measures
exclude from GAAP income from continuing operations, as applicable, revenue
related to upfront and milestone payments, amortization of intangible assets,
share-based compensation expense, acquisition accounting inventory fair value
step-up adjustments, transaction and integration costs, restructuring charges,
change in fair value of contingent consideration, loss on extinguishment of
debt, other non-cash expense/income, tax related to acquisition restructuring
and the release of the valuation allowance against substantially all of the
company's U.S. deferred tax assets, and adjust the income tax provision to the
estimated amount of taxes that are payable in cash; (ii) the adjusted net
income guidance measures exclude from estimated GAAP net income amortization
of intangible assets and depreciation, share-based compensation expense,
acquisition accounting inventory fair value step-up adjustments, transaction,
integration and restructuring costs, change in fair value of contingent
consideration, and other non-cash expense and adjust the income tax provision
to the estimated amount of taxes that are payable in cash; (iii) the adjusted
gross margin percentage guidance excludes from estimated GAAP gross margin
percentage share-based compensation expense and acquisition accounting
inventory fair value step-up adjustments; and (iv) the adjusted combined
selling, general and administrative and research and development expenses
guidance excludes from estimated GAAP combined selling, general and
administrative and research and development expenses share-based compensation
expense, transaction, integration and restructuring costs, depreciation, and
change in fair value of contingent consideration.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995

This press release contains forward-looking statements, including, but not
limited to, statements related to Jazz Pharmaceuticals' future financial
results and growth potential, including 2013 financial guidance, plans to
pursue business development opportunities and other statements that are not
historical facts. These forward-looking statements are based on Jazz
Pharmaceuticals' current expectations and inherently involve significant risks
and uncertainties. Actual results and the timing of events could differ
materially from those anticipated in such forward looking statements as a
result of these risks and uncertainties, which include, without limitation,
risks and uncertainties associated with maintaining and increasing sales of
and revenue from Xyrem, such as the potential introduction of generic
competition and changed or increased regulatory restrictions on Xyrem, as well
as similar risks related to effectively commercializing the company's other
marketed products, including Erwinaze and Prialt; protecting the company's
intellectual property rights; obtaining appropriate pricing and reimbursement
for the company's products in an increasingly challenging environment; ongoing
regulation and oversight by U.S. and non-U.S. regulatory agencies; dependence
on key customers and sole source suppliers; the difficulty and uncertainty of
pharmaceutical product development and the uncertainty of clinical success and
regulatory approval; the company's ability to identify and acquire, in-license
or develop additional products or product candidates to grow its business; and
potential restrictions on the company's ability and flexibility to pursue
future opportunities as a result of its substantial outstanding debt
obligations; as well as risks related to future opportunities and plans,
including the uncertainty of expected future financial performance and
results; and those risks detailed from time-to-time under the caption "Risk
Factors" and elsewhere in Jazz Pharmaceuticals plc's Securities and Exchange
Commission filings and reports (Commission File No. 001-33500), including in
the Quarterly Report on Form 10-Q for the quarter ended September 30, 2012 and
future filings and reports by the company, including the Annual Report on Form
10-K for the year ended December 31, 2012 . Jazz Pharmaceuticals undertakes no
duty or obligation to update any forward-looking statements contained in this
release as a result of new information, future events or changes in its
expectations.

                         JAZZ PHARMACEUTICALS PLC
                CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                 (In thousands, except per share amounts)
                                (Unaudited)
                                    Three Months Ended        Year Ended
                                       December 31,          December 31,
                                      2012       2011      2012       2011
Revenues:
Product sales, net                $ 181,942  $ 80,935  $ 580,527  $ 266,518
Royalties and contract revenues       1,761     2,601      5,452      5,759
Total revenues                      183,703    83,536    585,979    272,277
Operating expenses:
Cost of product sales                25,763     3,862     78,425     13,942
Selling, general and
administrative                        61,377    36,384    223,882    108,936
Research and development              7,277     3,764     20,477     14,120
Intangible asset amortization        21,907     1,862     65,351      7,448
Total operating expenses            116,324    45,872    388,135    144,446
Income from operations               67,379    37,664    197,844    127,831
Interest expense, net               (7,670)      (41)   (16,869)    (1,600)
Foreign currency loss               (2,263)         -    (3,620)          -
Loss on extinguishment of debt            -     (150)          -    (1,247)
Income from continuing operations
before
income tax benefit                   57,446    37,473    177,355    124,984
Income tax benefit                (108,760)         -   (83,794)          -
Income from continuing operations   166,206    37,473    261,149    124,984
Income from discontinued
operations, net of tax                34,345         -     27,437          -
Net income                       $ 200,551  $ 37,473  $ 288,586  $ 124,984
Basic income per ordinary share:
 Income from continuing
operations                          $  2.87  $  0.88  $  4.61  $  3.01
 Income from discontinued
operations                               0.59         -       0.48          -
 Net income                      $  3.46  $  0.88  $  5.09  $  3.01
Diluted income per ordinary share:
 Income from continuing
operations                          $  2.71  $  0.79  $  4.34  $  2.67
 Income from discontinued
operations                               0.57         -       0.45          -
 Net income                      $  3.28  $  0.79  $  4.79  $  2.67
Weighted-average ordinary shares
used in
per share computations:
Basic                                57,968    42,367     56,643     41,499
Diluted                              61,234    47,451     60,195     46,798

                  JAZZ PHARMACEUTICALS PLC
                SUMMARY OF PRODUCT SALES, NET
                       (In thousands)
                         (Unaudited)
                      Three Months Ended        Year Ended
                         December 31,          December 31,
                        2012       2011      2012       2011
Xyrem                 $ 113,514  $ 71,845  $ 378,663  $ 233,348
Erwinaze/Erwinase (1)    34,423         -     72,083          -
Prialt (1)                5,869         -     26,360          -
Psychiatry:
 Luvox CR             10,785     9,090     42,419     33,170
 FazaClo LD (1)        4,118         -     22,023          -
 FazaClo HD (1)        3,068         -     12,047          -
Other (1)                10,165         -     26,932          -
Total                 $ 181,942  $ 80,935  $ 580,527  $ 266,518

(1) Net sales for the year ended December 31, 2012 reported by Jazz
Pharmaceuticals plc include net sales from the historic Azur Pharma business
for the period beginning January 18, 2012 and net sales from the historic
EUSA Pharma business beginning June 12, 2012.
The following unaudited pro forma information represents the combined net
product sales for the three months and years ended December 31, 2012 and
2011, respectively, as if the merger with Azur Pharma, the acquisition of
EUSA Pharma and the disposition of the women's health business had each been
completed on January 1, 2011:

             SUMMARY OF PRODUCT SALES, NET (PRO FORMA)
                          (In thousands)
                            (Unaudited)
                           Three Months Ended         Year Ended
                              December 31,           December 31,
                            2012        2011       2012       2011
Xyrem                     $ 113,514  $  71,845  $ 378,663  $ 233,348
Erwinaze/Erwinase            34,423      18,534    131,870     44,220
Prialt                       5,869       5,773     26,699     20,600
Psychiatry:
 Luvox CR                 10,785       9,090     42,419     33,170
 FazaClo LD                4,118       8,090     22,256     30,105
 FazaClo HD                3,068       3,143     12,177      8,681
Other                        10,165      12,688     48,873     52,622
Total pro forma net sales $ 181,942   $ 129,163  $ 662,957  $ 422,746

                        JAZZ PHARMACEUTICALS PLC
                 CONDENSED CONSOLIDATED BALANCE SHEETS
                             (In thousands)
                             (Unaudited)
                                             December 31,   December 31,
                                                 2012           2011
ASSETS
Current assets:
Cash and cash equivalents                    $   387,196  $   82,076
Marketable securities                                    -        75,822
Accounts receivable                                 75,480        34,374
Inventories                                         26,525         3,909
Prepaid expenses                                     7,445         1,690
Deferred tax assets, net                            35,813             -
Other current assets                                19,113         1,260
Total current assets                               551,572       199,131
Property and equipment, net                          7,281         1,557
Intangible assets, net                             869,952        14,585
Goodwill                                           442,600        38,213
Deferred tax assets, net, non-current               74,850             -
Deferred financing costs                            16,576             -
Other long-term assets                               3,662            87
Total assets                                $  1,966,493  $  253,573
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable                             $   15,887  $   5,129
Accrued liabilities                                104,666        34,783
Current portion of long-term debt                  29,688             -
Income taxes payable                                39,884             -
Deferred tax liability, net                            275             -
Purchased product rights liability                       -         4,500
Liability under government settlement                    -         7,320
Deferred revenue                                     1,138         1,138
Total current liabilities                          191,538        52,870
Deferred revenue, non-current                        6,776         7,915
Long-term debt, less current portion              427,073             -
Contingent consideration                            34,800             -
Deferred tax liability, net, non-current           178,393             -
Other non-current liabilities                        6,621             -
Total shareholders' equity                      1,121,292       192,788
Total liabilities and shareholders' equity $  1,966,493  $  253,573

                          JAZZ PHARMACEUTICALS PLC
           RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
                 (In thousands, except per share amounts)
                                (Unaudited)
                            Three Months Ended             Year Ended
                               December 31,               December 31,
                             2012         2011          2012          2011
GAAP income from
continuing operations     $ 166,206    $ 37,473     $ 261,149  $ 124,984
Intangible asset
amortization                  21,907        1,862         65,351       7,448
Share-based
compensation expense           8,322       10,946         23,006      20,704
Acquisition accounting
inventory fair value
step-up                        2,118            -         16,794           -
Transaction and
integration costs              1,129        5,271         18,821      11,245
Restructuring charges           609            -          2,789           -
Change in fair value of
contingent
consideration                (1,400)            -          (300)           -
Loss on extinguishment
of debt                            -          150              -       1,247
Other non-cash expense
(income)                       1,291        (284)          2,860       (744)
Valuation allowance
release                    (104,247)            -      (104,247)           -
Income tax adjustments      (1,989)            -          4,171           -
Adjusted net income      $  93,946    $ 55,418     $ 290,394  $ 164,884
GAAP income from
continuing operations                                                 $   
per diluted share       $    2.71  $   0.79  $    4.34       2.67
Adjusted net income per                                              $   
diluted share           $    1.53  $   1.17  $    4.82       3.52
Shares used in
computing GAAP income
from continuing
operations and adjusted
net income per diluted
share amounts                 61,234       47,451         60,195      46,798

                            JAZZ PHARMACEUTICALS PLC
            RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED INFORMATION
                              CERTAIN LINE ITEMS
                    (In thousands, except per share amounts)
                                  (Unaudited)
                                       Three Months Ended
                       December 31, 2012                  December 31, 2011
                 GAAP     Adjustment     Non-GAAP   GAAP   Adjustment     Non-GAAP
                       $                      $      $        $            $ 
Total revenues  183,703   $    -     183,703  83,536       (284) (f)   83,252
Cost of
product sales     25,763     (2,614) (a)   23,149   3,862       (194) (c)    3,668
Selling,
general and
administrative    61,377     (7,242) (b)   54,135  36,384    (13,877) (g)   22,507
Research and
development        7,277       (922) (c)    6,355   3,764     (2,146) (c)    1,618
Intangible
asset
amortization      21,907    (21,907)            -   1,862     (1,862)            -
Interest
expense, net       7,670     (1,291) (d)    6,379      41           -           41
Foreign
currency loss      2,263           -        2,263       -           -            -
Loss on
extinguishment
of debt                -           -            -     150       (150)            -
Income tax                           (e)
provision
(benefit)      (108,760)     106,236      (2,524)       -           -            -
Income from
continuing
operations       166,206    (72,260)       93,946  37,473      17,945       55,418
Income from
continuing
operations per     $                    $      $                    $   
diluted share       2.71                   1.53   0.79                     1.17

(a) Acquisition accounting inventory fair value step-up of $2,118,
    share-based compensation expense of $417 and restructuring expense of
    $79.
(b) Share-based compensation expense of $6,983, transaction and integration
    costs of $1,129 and restructuring charges of $530, partially offset by
    change in fair value of contingent consideration of $1,400.
(c) Share-based compensation expense.
(d) Non-cash interest expense primarily associated with debt discount and
    debt issuance costs.
(e) Release of the valuation allowance against substantially all U.S.
    deferred tax assets of $104,247 and adjustments to convert the income tax
    provision to the estimated amount of taxes payable in cash of $11,721,
    partially offset by tax related to acquisition restructuring of $9,732.
(f) Revenue related to upfront and milestone payments.
(g) Share-based compensation expense of $8,606 and transaction and
    integration costs of $5,271.

                            JAZZ PHARMACEUTICALS PLC
             RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED INFORMATION
                               CERTAIN LINE ITEMS
                    (In thousands, except per share amounts)
                                   (Unaudited)
                                            Year Ended
                       December 31, 2012                  December 31, 2011
                 GAAP    Adjustment     Non-GAAP    GAAP    Adjustment     Non-GAAP
                      $                      $          $         $             $
Total revenues 585,979   $    -     585,979  272,277     (1,138) (f) 271,139
Cost of
product sales    78,425    (18,380) (a)   60,045    13,942       (624) (c)   13,318
Selling,
general and
administrative  223,882    (40,090) (b)  183,792   108,936    (26,837) (g)   82,099
Research and
development      20,477     (2,640) (c)   17,837    14,120     (4,488) (c)    9,632
Intangible
asset
amortization     65,351    (65,351)            -     7,448     (7,448)            -
Interest
expense, net     16,869     (2,860) (d)   14,009     1,600       (394) (d)    1,206
Foreign
currency loss     3,620           -        3,620         -           -            -
Loss on
extinguishment
of debt               -           -            -     1,247     (1,247)            -
Income tax
provision
(benefit)      (83,794)     100,076 (e)   16,282         -           -            -
Income from
continuing
operations      261,149      29,245      290,394   124,984      39,900      164,884
Income from
continuing
operations per      $                       $ 
diluted share     4.34                    4.82  $  2.67                 $  3.52
(a)            Acquisition accounting inventory fair value step-up of $16,794,
               share-based compensation expense of $1,416 and restructuring expense
               of $170.
(b)            Share-based compensation expense of $18,950, transaction and
               integration costs of $18,821 and restructuring charges of $2,619,
               partially offset by change in fair value of contingent consideration
               of $300.
(c)            Share-based compensation expense.
(d)            Non-cash interest expense primarily associated with debt discount
               and debt issuance costs.
(e)            Release of the valuation allowance against substantially all U.S.
               deferred tax assets of $104,247 and adjustments to convert the
               income tax provision to the estimated amount of taxes payable in
               cash of $20,940, partially offset by tax related to acquisition
               restructuring of $25,111.
(f)            Revenue related to upfront and milestone payments.
(g)            Share-based compensation expense of $15,592 and transaction and
               integration costs of $11,245.

                          JAZZ PHARMACEUTICALS PLC
        CONDENSED CONSOLIDATED STATEMENTS OF DISCONTINUED OPERATIONS
                               (In thousands)
                                 (Unaudited)
                                               Three Months      Year Ended
                                              Ended December    December 31,
                                                 31, 2012           2012
Product sales, net                             $    1,596  $    20,873
Income from discontinued operations, net of
taxes (1)                                       $   34,345  $    27,437
(1) Includes gain on sale of $35,244 in both the three months and year ended
December 31, 2012.

                     JAZZ PHARMACEUTICALS PLC
RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED 2013 FINANCIAL GUIDANCE
              (In millions, except per share amounts)
                            (unaudited)
GAAP net income                                       $197 - $215
Intangible asset amortization and depreciation           79-80
Share-based compensation expense                         48-50
Acquisition accounting inventory fair value step-up        4
Transaction, integration and restructuring costs         1 - 2
Change in fair value of contingent consideration           15
Other non-cash expense                                     5
Income tax adjustments                                    0-2
Adjusted net income                                   $355 - $367
GAAP net income per diluted share                    $3.17 - $3.47
Adjusted net income per diluted share                $5.70 - $5.90
Shares used in computing GAAP and adjusted
net income per diluted share amounts                       62

Website: http://www.jazzpharmaceuticals.com
Contact: For Investors, Kathee Littrell, Vice President, Investor Relations,
Jazz Pharmaceuticals plc, Ireland, + 353 1 634 7887, U.S., +1-650-496-2717, or
for Media, Ami Knoefler, Executive Director, Investor Relations and Corporate
Communications, Jazz Pharmaceuticals plc, Ireland, + 353 1 638 1032, U.S.,
+1-650-496-2947
 
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