Concert, Jazz partner for sodium oxybate compounds

Concert Pharmaceuticals Inc. (Lexington, Mass.) granted Jazz Pharmaceuticals plc (NASDAQ:JAZZ) exclusive, worldwide rights to develop and commercialize Concert's deuterium-modified sodium oxybate compounds, including lead compound C-10323. Jazz will be responsible for development, and Concert will receive an undisclosed upfront payment and is eligible for up to $120 million in milestones, plus tiered royalties. The compounds were developed using Concert's Deuterated Chemical Entity (DCE) Platform technology, which selectively substitutes deuterium for hydrogen in compounds. C-10323 is in preclinical testing for narcolepsy and fibromyalgia, with an IND submission slated for later this year. Sodium oxybate is the active ingredient in Jazz's narcolepsy drug Xyrem.

Separately, Jazz reported 4Q12 and 2012 earnings. The company's 4Q12 non-GAAP diluted EPS of $1.53 beat by $0.11 the Street's estimate of $1.42 and was up from $1.17 in 4Q11. Jazz reported revenues for the quarter of $183.7 million, just shy of the Street's $183.8 million estimate and up from $83.5 million in 4Q11. For the year, Jazz's revenues were $586 million, up 115% from $272.3 million in 2011. The Street was expecting $587.8 million. Full-year Xyrem sales jumped 62% to $378.7 million compared to $233.3 million in the prior year. For 2013, the company said it expects net Xyrem sales of $530-$540 million, revenues of $805-$835 million and non-GAAP EPS of $5.70-$5.90. The Street is expecting revenues of $813.7 million and non-GAAP EPS of $5.71. ...