Jazz Pharmaceuticals expects a $755 million expense tied to its Actio Biosciences purchase to cut third-quarter earnings per share by about $11 under both GAAP and non-GAAP adjusted measures.
In its Oct. 26 filing, Jazz identifies the item as acquired in-process research and development (IPR&D) expense and estimates it at about $755 million before tax. The company said the expense is not tax deductible. Its quarter-end close was still in progress, so final results for the quarter ended Sept. 30 could differ from the estimate.
Jazz completed the $820 million upfront purchase on Sept. 15. The acquisition added ABS-1230, a clinical-stage candidate for KCNT1-related epilepsy, to the company’s portfolio. Jazz said the deal strengthens its epilepsy pipeline.
Jazz is scheduled to release third-quarter results Monday, Nov. 2, after U.S. markets close. The company has scheduled a webcast for 4:30 p.m. ET.
