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Jazz Pharmaceuticals, Inc. Announces Fourth Quarter and Full Year 2007 Financial Results
Date:2/13/2008

e year ended December 31, 2007 included:

-- a $20.2 million non-cash reduction in the carrying value of the

intangible asset related to Antizol(R) (fomepizole) as a result of the

approval and introduction of a generic competitor;

-- a $17.5 million charge related to a previously announced settlement

with the United States government, of which $1.0 million was paid in

2007;

-- $9.5 million of contract revenue resulting from milestone payments

under Jazz Pharmaceuticals' agreement with UCB; and

-- a $5.1 million gain on the divestiture of Cystadane(R) (betaine

anhydrous for oral solution).

Net loss for the year ended December 31, 2006 included a $31.6 million non-cash gain on extinguishment of a development financing obligation in connection with a terminated development program.

Research and development expenses for the quarter ended December 31, 2007 were $20.5 million, compared to $13.0 million for the quarter ended December 31, 2006. For the year ended December 31, 2007, research and development expenses were $69.8 million, compared to $55.0 million for the year ended December 31, 2006. The increase in research and development expenses in 2007 reflects expanded Phase III clinical trial activities for JZP-6, LUVOX CR scale-up and manufacturing costs and increased headcount.

Selling, general and administrative expenses for the quarter ended December 31, 2007 were $28.0 million, compared to $12.5 million for the quarter ended December 31, 2006. For the year ended December 31, 2007, selling, general and administrative expenses were $78.5 million, compared to $51.4 million for the year ended December 31, 2006. The increase in both periods was primarily due to spending in preparation for the anticipated launch of Once-A-Day LUVOX CR (fluvoxamine maleate) Extended-Release Capsules, increased headcount and higher expenses to support the company's sales force, offset
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SOURCE Jazz Pharmaceuticals, Inc.
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