Jazz's $754 million research charge still counts in adjusted earnings

Jazz Pharmaceuticals reported a quarterly loss even on its adjusted earnings measure after buying Actio Biosciences. The $754.2 million expense assigned to Actio's unfinished research remains in both the reported and adjusted results.

At the same time, the drugmaker raised its annual sales forecast. Third-quarter revenue reached a record $1.243 billion, up 10% from a year earlier, led by growth in Xywav and its cancer medicines.

The research cost stays in the calculation

Jazz completed the Actio acquisition on September 15, adding an experimental epilepsy program. It accounted for the transaction as an asset acquisition. The research value was expensed immediately because it had no alternative future use under the accounting rules.

Jazz reported a $483.4 million net loss for the quarter ended September 30, 2026. Its adjusted net loss was $250.8 million.

The adjusted figure removes stock compensation, accounting charges that spread acquired-asset costs over time, restructuring and specified integration costs, with related tax effects. It retains the acquired-research expense.

BioMarin's recent earnings forecast cut also reflected new research costs that remain in adjusted earnings.

The sales target points to another strong quarter

The new 2026 revenue range is $4.775 billion to $4.850 billion, up from $4.600 billion to $4.750 billion in August.

Research by Ticker Byline shows that subtracting the first nine months' $3.520 billion of sales from the new annual forecast implies approximately $1.255 billion to $1.330 billion in the fourth quarter. That would put sales above the latest quarter's record.

Product performance varied. Xywav sales grew 12%, while cancer-medicine revenue rose 35%. Epidiolex sales slipped 2%; Jazz cited the prior-year comparison and wholesaler purchasing patterns.

The cash price differs from the research charge

Actio's upfront price was $820 million net of acquired cash, plus up to $500 million of contingent milestone payments. Including transaction costs, the acquisition used $830.8 million of net cash.

Jazz generated $1.330 billion of operating cash over the first nine months, compared with $993.3 million a year earlier. That comparison benefits from $233.5 million of antitrust-settlement payments made in 2025.

During the latest quarter, Jazz issued $1.25 billion of exchangeable debt and used existing cash to repurchase $225 million of shares. Its new $500 million buyback authorization, approved in October, is a separate plan.

The quarterly filing also discloses a pending trade-secret and contract lawsuit brought by Praxis against Actio. Jazz says it intends to defend the claims. According to the filing, an unfavorable outcome could restrict Jazz's ability to develop or bring the acquired drug to market.

The Jazz company profile tracks the completed purchase, financing, annual forecasts and the distinction between research expense and cash spent.