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Jazz Pharmaceuticals, Inc. Announces Fourth Quarter and Full Year 2008 Financial Results
Date:3/26/2009

fibromyalgia) product candidate. Lower expenses in the fourth quarter of 2008 also reflect a reduced level of activity on development programs other than JZP-6, pending partnering or other funds to pursue future development of those programs.

Selling, general and administrative expenses for the quarter ended December 31, 2008 were $20.2 million, compared to $28.0 million for the quarter ended December 31, 2007. For the year ended December 31, 2008, selling, general and administrative expenses were $111.4 million, compared to $78.5 million for the year ended December 31, 2007. The increase in 2008 was primarily due to spending in connection with launch activities for LUVOX CR, including increased headcount and higher expenses to support the company's expanded sales force. The decrease in the fourth quarter of 2008 reflects a decrease in spending on LUVOX CR and reductions in headcount.

Jazz Pharmaceuticals' net loss for the quarter ended December 31, 2008 was $56.9 million, compared to a net loss of $60.0 million for the quarter ended December 31, 2007. For the year ended December 31, 2008, the net loss was $184.3 million, compared to a net loss of $138.8 million for the year ended December 31, 2007. Expenses for 2008 included a fourth quarter non-cash impairment charge of $29.8 million relating to the company's LUVOX CR intangible asset. Expenses for 2007 included a fourth quarter non-cash impairment charge of $20.2 million relating to the company's Antizol(R) (fomepizole) intangible asset; the rights to that product were sold to a third party during the third quarter of 2008. Net loss for 2008 also included increased interest expense, as compared with 2007, due primarily to the issuance of $40.0 million of additional senior secured notes in March 2008. Net loss for 2007 included a $17.5 million provision for the previously disclosed settlement of a government investigation of Orphan Medical.

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