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Achieved record annual revenue of $4.3 billion in 2025, driven by the successful launch of Modeyso and double-digit growth in the Xywav and Zepzelca franchises.
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Management is sharpening the corporate focus on rare disease, leveraging existing capabilities in sleep, epilepsy, and oncology to drive long-term value through internal R&D and M&A.
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Resolved significant legal headwinds by settling ANDA litigation for Epidiolex, extending the product’s runway into the late 2030s, and settling the majority of rare sleep franchise litigation.
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The acquisition of Chimerix provided immediate commercial value via Modeyso and a strategic financial benefit through a deferred tax asset expected to reduce future cash taxes by over $200 million.
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Zanidatamab (Ziihera) is positioned as a potential new standard of care in HER2-positive cancers following Phase III data showing unprecedented survival benefits in first-line GEA.
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Operational excellence and productivity efforts are being utilized to offset increased launch investments for new therapies and expanded AI capabilities.
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Anticipates a potential second-half 2026 launch for zanidatamab in GEA, supported by Breakthrough Therapy designation and a rolling BLA submission expected to complete in Q1 2026.
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2026 revenue guidance of $4.25 billion to $4.50 billion assumes double-digit growth in oncology and epilepsy, offset by a projected decline in the rare sleep franchise due to generic competition.
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The sleep market strategy focuses on Xywav’s low-sodium differentiation to maintain market share as multiple high-sodium generic alternatives enter the market.
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R&D investment is expected to increase to support the EmpowHER Phase III trial in breast cancer, with enrollment completion targeted for the first half of 2027.
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Management expects to remain active in corporate development, targeting one or more deals in 2026 to further bolster the rare disease pipeline.
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Discontinued development of JZP441 and ended the partnership with Sumitomo following a clinical assessment, though the company continues to pursue a backup orexin program.
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Anticipates a slight decline in adjusted gross margin to 90%-91% due to higher royalty-bearing product sales and potential impacts from U.S. import tariffs.
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The transition of Zepzelca into the first-line maintenance setting is expected to cause a shift in utilization, with declining second-line revenue being replaced by first-line adoption.
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Increased share count guidance for 2026 reflects the accounting impact of convertible notes as the stock price has exceeded conversion thresholds.
