Good day, and thank you for standing by. Welcome to the Jazz Pharmaceuticals 4th Quarter 2025 Earnings Conference Call. At this time, all participants are in listening mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to turn the conference over to your speaker today, John Bluth, Head of Investor Relations. Please go ahead.

Thank you, and good afternoon, everyone. Today, Jazz Pharmaceuticals reported its fourth quarter and full year 2025 financial results. The slide presentation accompanying this webcast is available on the Investor Section of our website, along with the press release and annual report on Form 10-K for the fiscal year ended December 31st, 2025. On the call today are Renee Gallup, President and Chief Executive Officer, Sam Pearce, Chief Commercial Officer, Robby Annone, Global Head of R&D and Chief Medical Officer, and Phil Johnson, Chief Financial Officer. On slide two, I'd like to remind you that today's webcast includes forward-looking statements such as those related to our future financial and operating results, growth potential and anticipated development regulatory and commercial milestones, which involve risks and uncertainties that could cause actual events, performance, and results to differ materially from those contained in these forward-looking statements. We encourage you to review these risks and uncertainties described in today's press release and under the caption risk factors in our annual report on Form 10-K for the fiscal year ended December 31st, 2025, and our subsequent filings with the SEC. We undertake no duty or obligation to update our forward-looking statements. As noted on slide three, we will discuss non-GAAP financial measures on this webcast. Descriptions of these non-GAAP financial measures and reconciliations of GAAP to non-GAAP financial measures are included in today's press release and the slide presentation available on the Investor section of our website. I'll now turn the call over to Renee.

Thanks, John. Good afternoon, everyone, and thank you for joining us to discuss JAZZ's fourth quarter and full year 2025 results, as well as our outlook for 2026. I'll begin on slide five. JAZZ had an exceptional year in 2025, representing our 21st consecutive year of top-line revenue growth and underscoring our commitment to operational excellence as we deliver meaningful innovation for patients. We achieved record total revenue in 2025 of $4.3 billion. This included fourth-quarter revenue of $1.2 billion, reflecting 10% year-over-year growth and our highest revenue quarter ever. We expanded our portfolio through multiple approvals and launches. Following our acquisition of Chimerix in April, we rapidly received approval of and launched Medeso, bringing this new therapy to patients who previously had no approved drug options. From its launch in August, Medeso generated $48 million in 2025 revenue. In October, we received approval of the Belka in combination with the tizolizumab and the first-line maintenance setting following the strong overall survival data presented at ASCO in June. Our most significant R&D progress came with the presentation of practice-changing data from our first randomized Phase III clinical trial of ZANI datamab, supporting the opportunity for ZANI to become the HER2-targeted agent of choice across a number of tumor types. Zanidatamab, in combination with tizolizumab and chemotherapy, demonstrated more than two years of median overall survival in first-line HER2-positive metastatic GEA, an unprecedented survival benefit for these patients whose five-year survival rates remain below 10%. In addition to our outstanding execution on the commercial and regulatory front, we resolved nearly all major litigation for the company. We settled outstanding AMNA litigation throughout the dialects, increasing the runway into the very late 2030s, and we resolved the majority of litigation in our Rare Suite franchise. These achievements are all underpinned by our strong financial position and performance, which Phil will cover later in the call. As we look ahead to the next decade and beyond, we are sharpening our strategic focus on rare Our rare disease strategy is centered on strengthening our current franchises and expanding into new areas of rare disease, supported by multiple dynamics that make this space attractive for JAS, as outlined on slide six. Built on the capabilities we have developed over many years and our longstanding commitment to delivering life-changing medicine, we believe JAS is particularly well-suited to have a meaningful impact for patients with rare disease. We look forward to announcing future pipeline advancements and new business development transactions. Our proven track record in corporate development, as outlined on slide 7, includes a number of successful value-creating transactions in rare disease. For example, we acquired XANI DataMap through a licensing agreement with a modest upfront payment. Since then, we've made significant progress with an approval in second-line BTC, practice-changing data in GEA, and what is now an extensive development program across breast and other HER2-expressing cancers. With the Chimerics acquisition, in addition to securing Medeso, we generated significant financial value by recognizing a deferred tax asset that will reduce our future cash taxes by over $200 million. And, as announced in January, we sold our priority review voucher for $200 million in gross proceeds, half of which will flow to Jazz. In fact, each of the deals outlined here has added new areas of strength and expertise, which we intend to leverage to continue building a more valuable company. 2025 was an outstanding year for Jazz, one that we're proud of and one that provides us with immense confidence in the future. We are building upon this momentum in 2026 as we prepare for the potential launch of Dany Datamab and GEA and sustain the launch execution for Medeso and Zepzelka. We also remain focused on reinforcing the differentiated profiles of Epidiolex and SciWave as the leading branded treatments for epilepsy and narcolepsy, respectively. In parallel, we continue to advance our R&D pipeline and pursue a business development strategy that is aligned with our rare disease focus, aiming to deliver durable growth and long-term value creation for patients and shareholders. I'll now turn the call over to Sam to discuss our commercial performance.

Thanks, Renee. I'm pleased to share the strong commercial execution we delivered across our diversified portfolio in 2025. Started on slide nine with our rare sleep therapeutic area, which includes DiWave, DiREN, anti-sodium-oxidate authorised generic royalties, we delivered more than $2 billion in total revenue in 2025, including $559 million in the fourth quarter. Zywave revenue grew 12% to approximately $1.7 billion for the year. In the fourth quarter, Zywave generated $465 million, representing 16% growth compared compared to the same period in 2024. Our sleep team delivered exceptional performance in 2025 and we remain committed to providing a safer, low-sodium option for patients with narcolepsy and IH. As designated by the FDA, diurase is superior to high-sodium oxidase based on the greatest safety provided by a low-sodium medicine. These benefits continue to resonate with physicians and patients, driving approximately 500 net patient ads in the fourth quarter and more than 2,000 net patient ads in 2025, including a 34% increase in net active IH patients. DiRave remains the number one grounded treatment for narcolepsy and the only FDA-approved treatment for IH. Field execution continues to be supported by our disease awareness digital campaigns across both narcolepsy and IH. These efforts are increasing awareness of these distinct disease states, the availability of XyRase, and encouraging patients to engage in treatment discussions with their healthcare providers. We enter 2026 in a position of strength with more than 16,000 patients taking XyRase. Two generic versions of high-sodium XyRen are are entering the market and are expected to negatively impact high-sodium XI-REM revenues. There is also a modest step-down in the royalty rate from 2025 to 2026 for the Hikma or Thrive Generic or AG, with significant economics still flowing to jazz. Given that XI-Wave is not AV-rated to high-sodium oxidase, we do not anticipate a material impact on low-sodium di-wave revenue in the first half of 2026. Whilst the expected competitive sleep landscape will evolve in the second half of the year, it's important to note, in an increasingly competitive environment, di-wave remains clearly differentiated, offering a safer, low-sodium profile, and continues to be the only SEA-approved treatment for our age. As a separate and unique indication of I-Wave, we see the most opportunity for patient growth coming from I-Age. Moving to slide 10 and Epidiolex, Epidiolex reached a significant milestone in 2025, achieving blockbuster status with $1.1 billion in revenue, up 9% year-over-year, with strong underlying demand, driving 7% volume growth in 2025. Fourth quarter 2025 revenue was $287 million, representing 4% growth compared to the fourth quarter of 2024. I'd note that year-on-year growth was negatively impacted by higher-than-normal inventory levels at the end of fourth quarter 2024. Looking ahead, we see our greatest growth opportunity in the adult patient population, particularly through expanded reach in long-term care settings. In addition, our Nerve Navigator program continues to meaningfully improve patient persistency and we're focused on increasing utilization of this resource in 2026. Given the long runway to Epidiolex, we will continue to invest in additional development opportunities, including new formulations, with a clear focus on driving growth in adult patients. We believe Epidiolex is well positioned to remain an important anti-seizure medicine for patients over the long term. Moving to our rare oncology portfolio, I'll start with Zihira on slide 11. Zihira is a highly differentiated HER2 targeted therapy that represents a key pillar of JAVA's future growth. We are focused on maximising Zihira's potential across HER2 positive cancers, supported by the strong phase 3 horizon GDA results, which exceeded existing standards of care. Beyond GEA, VaniDataMap has demonstrated encouraging activity across additional heresy of express and tuners, positioning it as a meaningful multi-indication commercial opportunity. Our largest near-term opportunity is in first-line metastatic GEA, where we have the potential to launch VaniDataMap in this indication in the second half of 2026. Awareness and experience with DIHERA continue to build, particularly across academic centres and large community networks, with additional opportunity to expand familiarity as we move into GEA and other team of clients. From an access standpoint, DIHERA benefits from an established permanent GEDICode through its FEA approval in second-line, herstory-productive theory track counsellors, simplifying reimbursement and reducing administrative burden. This is complemented by our comprehensive JASCARE support services along with flexible ordering and fulfilment options. Our existing commercial footprint, capabilities and experience teams position as well to execute effectively in GEA and to support broader development across additional her-to-express in tumours.

Turn to slide 12 and Medego.

From its launch in August through the end of 2025, Medego generated $48 million in revenue. This strong early performance reflects the significant unmet need, high awareness given by advocacy groups and the value of physicians C for patients with H3K27M mutant diffuse midline glioma. Early uptakes have been driven by new patient staff, largely within academic centres of excellence. As the launch progresses, we are focused on expanding youth in the community setting and gaining further insight into real-world treatment patterns, including duration of treatment. Based on what we see today, we believe Medejo represents a compelling peak share of opportunity of greater than $500 million in the US. In 2025, more More than 360 patients received Medeso, offering renewed hope for patients and their families facing this devastating disease which has a median survival of approximately one year from diagnosis and less than six months following progression from frontline radiotherapy. The launch is supported by highly experienced neuro-oncology focused field sales, medical and access teams, appropriately sized to deliver targeted engagement to both personal and non-personal channels. In addition, our exclusive distribution partnership with Onco360 provides robust, patient-centric support services, and we are encouraged by strong payer coverage and continued positive launch momentum. Moving to slide 13 and Zepdelka. In October, we received FDA approval for the combination of Zepdelka and dysentery, expanding Zepdelka into the first-line maintenance setting for extensive-stage small-cell lung cancer. This approval broadens Zepdelka's addressable market and represents an important milestone. In 2025, that Delta generated $307 million in revenue. In the fourth quarter, revenue was approximately $90 million, representing 15% year-over-year growth compared to fourth quarter 24. We believe the growth in the fourth quarter was primarily driven by initial demand in the frontline session. Given the strength of the clinical data and the opportunity to improve outcomes for patients with extensive stage small cell lump answer, we are prioritizing our commercial efforts on the first-time maintenance specialization with declining second. I'll now turn the call over to Rob to review the development program that is underway to San Diego Lab and provide an update.

Thank you, Sam. 2025 was a transformative year across our R&D pipeline, and we look to build on this momentum in 2026, starting with the practice-changing data we presented at ASCO-GI on slide 15. The Xanadatamab plus tizilizumab and chemotherapy arm demonstrated a clinically meaningful and statistically significant improvement in OS, with more than seven months improvement and a 28% reduction in the risk of death versus the tizilizumab control arm. The benefit was observed in PD-L1 positive and PD-L1 negative patient subgroups. Then a datamab plus chemotherapy showed a clinically meaningful survival benefit with a median OS of over two years with a strong trend towards statistical significance at the time of this first interim analysis for OS. An additional planned interim OS analysis for this comparison is currently expected mid this year. For PFS, there was a clinically meaningful and statistically significant benefit in the ZANI plus chemo arm compared to the control arm, as represented by a greater than four month median difference. We are moving quickly to bring Zanadatamab to HER2 positive first line metastatic GEA patients. As we previously noted, we submitted the Horizon GEA data to NCCN for inclusion in the oncology guidelines. On the regulatory front, we expect to complete the submission for our Supplemental Biologics license application for XANA Datamap under real-time oncology review in the first quarter of this year. I'm also pleased to share that the FDA has granted breakthrough designation for Xanadatamab in GEA. We expect these designations will allow us an even closer interaction with FDA and potentially greater speed to approval. Based on this, there is the potential to launch Xanadatamab in GEA in the second half of this Our data firmly positions Zanidatumab as the HER2-targeted agent of choice in first-line GEA, replacing Trastuzumab as the standard of care, offering unprecedented durability and survival benefits. We believe Zanidatumab's role as the new standard of care will extend across multiple tumor types. And on slide 16, you can see the robust development program that is underway for Zanidatumab, which we believe has been meaningfully de-risked by the strength of the GEA data. The next pivotal phase 3 trial for Xanadatamab is in metastatic breast cancer patients who have progressed on or are intolerant to NHER2. The treatment landscape is evolving, as we anticipated, with NHER2 moving into frontline metastatic breast cancer, laying the groundwork for Xanadetamab's potential move into the second-line-plus metastatic breast cancer setting. Our EMPOWER trial represents the first clinical trial to evaluate a HER2-targeted agent after treatment within HER2. Based on early data generated to date, Xanadetamab has shown clinical activity after trastuzumab-based regimens, including in HER2, which is an antibody drug conjugate of the monoclonal antibody trastuzumab. We believe zanidatumab will be able to fill an unmet need in the breast cancer space and believe the compelling first-line GEA data helped to de-risk the ongoing metastatic breast cancer trial. We are incredibly excited about this opportunity in breast cancer, and we are also hearing similar excitement from physicians and sites that continue to enroll patients to this trial. We expect to complete enrollment in the Empower trial in the first half of 2027, with top-line data anticipated in late 2027 or early 2028. As we continue to evaluate the potential for Xanadatamab to be used in multiple HER2-expressing solid tumors, we're pursuing collaborations with partners to combine ZANI with novel therapies. For example, a Phase I trial in combination with Perenger-Ingelheims on Gertnib was recently initiated to explore the combination in metastatic HER2-positive breast cancer, along with other potential tumor types. Other earlier stage trials continue to progress across new indications, including a potentially registrational pan-tumor basket trial and a neoadjuvant adjuvant breast cancer trial. We're also exploring other areas like non-small cell lung cancer and colorectal cancer. We have great confidence in Xanadatamab and intend to fully maximize the value it may offer to HER2-positive cancer patients. Beyond Xanadatamab, we have a number of promising development opportunities across our diversified pipeline, which are outlined on slide 17. We have strengthened our early-stage pipeline with two recently-initiated clinical trials. As we refine our strategy to focus on rare disease and areas where we have deep expertise, we will continue to build on our research and early development capabilities. A great example of this is JCP 047, which was developed in-house at JAS, and I'm pleased to share, was cleared to proceed into a Phase I study under a new IND. We initiated a Phase I healthy volunteer trial in January to evaluate JCPO47 for the treatment of absence epilepsy. Building on our expertise in epilepsy and as we explore areas of growth for epidiolex, we also initiated a Phase I-B trial of epidiolex in focal onset seizures. Looking ahead to later this year, or early 2027, we anticipate the ongoing Phase III Action Trial will have an interim overall survival readout. This trial is designed to confirm the benefit of MODESO and support regulatory approval as frontline therapy directly following radiation instead of waiting for signs of tumor progression before treating with MODESO. Before I turn over the call, I will share an update on JCP441 and Erexin we brought into the clinic with our partner, Sumitomo. Based on our continued assessment of this molecule, we have made the decision to stop the development of JCP441 and end the partnership with Sumitomo. As leaders in sleep, we see promise in the Erexin Receptor Agonist Mechanism of Action as complementary to Oxivate and XiWave as the only low-sodium Oxivate, and we are continuing to investigate our backup erection program. Overall, we have a number of exciting clinical trials that are advancing across our pipeline from early stage to registrational trials, and we're looking forward to sharing further updates this year. Now I will turn the call over to Phil for a financial update.

Thanks, Rob. I'll start with our top-line results on slide 19. Please note that our full financial results are available in today's press release and 10K. In the fourth quarter of 2025, we achieved record total revenues of $1.2 billion, with Zywave, Zepzelka, and Rylees all posting their highest-ever revenue quarter. Total revenue growth of 10% was driven primarily by 16% growth in Zywave and strong initial uptake of Medeso. For the full year of 2025, we recorded $4.3 billion in total revenues, also a record, representing 5% growth over 2024. Full-year revenue growth was driven by ZYWAVE, Epidiolex, and Medeso, partially offset by ZYRUM. Turning to slide 20, our full-year 2025 non-GAAP-adjusted net income was approximately $522 million, and we reported non-GAAP-adjusted ETFs of $8.38. Moving to slide 21, we're pleased to share our full-year financial guidance for 2026. Our 2026 total revenue guidance range of $4.25 to $4.50 billion equates to growth of about 2.5% at the midpoint compared to 2025. We have strong momentum in our rare oncology and epilepsy revenues. Sales of these products hold $2.2 billion in 2025, and in 2026, we expect double-digit growth in this part of our business, driven primarily by Epidiolex, Medeso, and Zihiro. Revenue from our rare sleep franchise, on the other hand, which totaled $2.01 billion in 2025, made decline due to the evolving sleep market that Sam mentioned, including the introduction of multiple generic high-sodium oxidate products. We expect total rare sleep revenue of $1.8 to $1.9 billion, which represents a modest decrease in 2025, primarily driven by Xyrem and Hikma-AG revenue. Specifically, with two generic high-sodium-oxidate products on the market, we expect a further reduction in sales of Xyrem, which generated $146 million in revenue in 2025. For the Hikma-AG, there is a modest step down in the royalty rate from 2025 to 2026, with significant economics still flowing to jabs. For branded low-sodium XiWave, we expect revenue to be flat to up mid-single digits. Moving to the rest of our guidance line items, our non-GAAP adjusted gross margin percent guidance is 90 to 91%. This is a slight decline from 2025, primarily due to higher sales of products like Medeso and Zahira, driving higher royalties, and to a lesser extent, the potential for higher care of some products imported into the U.S. Our non-GAAP adjusted SG&A guidance range is $1.26 to $1.32 billion. Excluding the XIRAM and AVIDA litigation settlement expenses from 2025, this means we expect SG&A expenses to be relatively unchanged in 2026 as increased launch expenses from Mideso and Zaheer the first-line GBA setting, as well as increased investment in key commercial capabilities and AI are offset by productivity efforts across our global commercial organization, lower facilities expenses, and lower legal fees. Our non-GAAP adjusted R&D guidance range is $725 to $775 million. This represents an increase over 2025, driven by increased spend presenting data mail, both for ongoing and new studies across multiple potential indications, including breast cancer, higher expenses for gerdavocrone, which will recognize a full year's worth of activity, higher spend on preclinical and early clinical programs, including JZP898, JZP815, JZP3507, formerly Anc206, and JZP053, the Senyona molecule, and higher spend on advanced analytics and AI. We expect our non-GAAP adjusted effective tax rate to be between 11.5% and 13.5%. Finally, our guidance range for fully diluted shares outstanding is $65 to $66 million. The increase in 2025 is driven by normal factors like shares issued for employee compensation and those purchased by employees via our stock purchase program, evolved by accounting for our 2026 and 2030 convertible notes now that our stock price exceeds the conversion price of those notes. We've included an Excel worksheet in the Investors section of our website to help you model this impact. You'll note that we're not guiding to adjusted net income or EPS this year. This reflects both the review of questions we've received and not received from investors and analysts as well as a review of peer guidance practices. Moving to slide 22, our balance sheet remains strong. We continue to generate significant cash from our business, recording approximately $1.4 billion of cash from operations for the full year 2025, and we ended the year with $2.4 billion in cash and investments. Our overall financial position and robust operating cash flows provide significant flexibility to invest in value-driving commercial and R&D programs, as well as in promising corporate development opportunities to support our affine strategy on rare disease. I'll now turn the call back to Renee for closing remarks.

Thank you, Phil. I'll conclude our prepared remarks on slide 24. 2025 represented a truly transformational year for JAZZ. We delivered record financial performance, achieved multiple regulatory approvals, successfully launched innovative therapies, and generated factors-changing clinical data that positions us for significant future growth. Our refined strategic focus on rare disease leverages our proven capabilities and positions us to compete and win in areas where we can make the greatest impact for patients. We have the opportunity to invest in our pipelines, the growth of our commercial products, and also in corporate development, where we think there is a solid foundation for us to transact in our existing areas of sleep, epilepsy, and oncology, as well as in other areas of rare disease. With our strong financial position, diversified commercial portfolio, and robust pipeline, we are well positioned to drive durable growth and create long-term shareholder value. That concludes our prepared remarks. I'd now like to turn the call over to the operator to open the line for Q&A.

Thank you. As a reminder, to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. We ask that you please limit yourself to one question. Our first question comes from the line of Jason Gerberry with Bank of America. Your line is now open.

Hey, guys. Thanks for taking my question. I just wanted to follow up, Phil, on just, I guess, the guidance around ZIWAVE for 2026. So I believe it's flat, essentially growing mid-single digit. So is the right way to think about the dynamics there that in a flat scenario, IH is growing and maybe the conservatism to a guidance of flat is just payer contracting concessions that may need to occur? And there There was some commentary about limited generic impact in first half, but second half, I'm just wondering, I know there was, like, not total clarity earlier in the year on when you'd have a full line of sight on what the generic Xyrem impact is. So is there something that you're kind of reserving in the guidance conservatism-wise in terms of, like, what the second half impact could be?

Yeah, Jason, thank you for the question. So as we think about the evolution over 2026 of ZyWave, we come into the year really well positioned, both from a contracting perspective, the kind of net patient ads we had throughout the year, including in the fourth quarter, and the recognition that patients and physicians have for the unique safety benefit that's offered by ZyWave as the only low-sodium oxabate. We also now have better line of sight into the timing of entry for generic high-sodium oxabate products, where it appears that now we've got two, as we speak, that are in the process of having their launch that could have occurred as early as December 31st of last year, but is occurring now. It will probably, just given the dynamics in this marketplace, with the need to register physicians and patients into the REMS program, take some time for those generics to build their volumes over time. That's one of the dynamics that could lead to maybe different effect on branded zi wave in the first half versus the second half. And we also have an evolving landscape more broadly in sleep, where there's the potential for a couple of weight promoting agents to be entering the market in the second half of the year. And often we do see with new patients in narcolepsy, for example, they'll typically go on to wake-promoting agents first. They may even go through one or more of those before they would then progress onto sodium oxabate to give them some of the nighttime benefits that oxabate can offer that the daytime waking agents cannot. So, those are the dynamics that are factoring into our thinking. We're really pleased with where we're at and the outlook we have for the year. We've all just asked Sam, is there anything that she would want to complement to my answer from her commercial perspective?

I think it was a great answer, Phil. Yeah, I think you mentioned we're carrying really fabulous momentum into 2026, and we have payer contracts in place for this year. We're very happy with the patient ads that we saw in 2026, 2,000 additional patients at the end of the year. And most of that is coming from IH. We actually had 34% growth in the numbers of active IH patients by the end of the year. So, you mentioned around that, and we do feel as though the IH business is probably going to be the major driver of continued growth for ZyWave, being the only approved medication in that space. So, yeah, we enter the year with some confidence. We also know that what we've seen through the course of 2025 is really significant support from healthcare physicians and also from patients. We know patients with narcolepsy and IH, the vast majority of them have some kind of cardiovascular or cardiometabolic issue, and therefore the low sodium option is one that resonates extremely really well for this particular patient type. And even with any payer action that may be taken, we do believe there's strong commitment from HTPs to ensure that those patients can access the low sodium option.

Thank you. Our next question comes from the line of Sean Laman with Morgan Stanley. Your line is now open.

Hi, this is Mike Riyad. Thank you for taking our question. Are you able to provide any more color on the level of that modest step down on the HICMA royalty rate in 26 relative to last year? And then any commentary on the overall impact to the AG volume with two more generics coming on market? Thank you.

Yeah, Mike, this is Phil. Maybe I'll handle that. The first part, we're not able to disclose the specific royalty percentages. We have said in the past that the prior royalty rate that we had for the latter part of 24 and through 25 was quite high. So, I think that sort of links that there is a step down coming into 2026, but we do still have significant economics flowing to jabs, but can't be more specific than that. Stan, did you want to comment maybe on the AG?

Nothing too much more to add, Phil. You know, the AG has obviously been in the market for some time, and, you know, nothing much more to add to what you said, Phil, in terms of our expectations there.

Thank you. Our next question comes from the line of Mark Goodman with Lee Rink. Your line is now open.

Yes, hi, Rob. Can you talk a little bit more about JCP-047, the background of the acid? Is this a cannabidiol from GW deal, or what kind of preclinical data do you have? I mean, what's the proof of concept, the mechanism, why happen seizures, anything you're willing to give us?

Yeah, thanks for your question, Mark. So, we haven't yet disclosed the specific mechanism of action, you know, for competitive reasons. But I can say that it's not in the cannabinoid space. It's a novel chemical entity that we developed, discovered, and developed at JAS. We have strong preclinical data, we believe, in absence epilepsy, and that will be our initial focus of development. The development starts in Healthy Volunteers, where, you know, we think we'll get meaningful information around safety and exposures that we expect would be efficacious to de-risk the asset before going into a patient population.

Thank you. Our next question comes from the line of Akash Tawari with Jeffries. Your line is now open.

Hey, this is Anastasia on for Akash. Thanks for taking my question. Can you give us a little more context on that post-in HER2 breast cancer population, potential uptake? Like, how big is the population? What kind of treatments do patients typically take post-in HER2? Any kind of context on, like, potential penetration, whether you consider dropping price to enhance access and the like?

You know, so I can, Renee, would you like me to start with regard to, you know, the clinical treatment landscape there and how we're viewing that?

Yeah, why don't you go ahead and start with that, Rob?

So, you know, we see this landscape, I think, is evolving just as we had predicted within HER2 moving to frontline, potentially with pertuzumab, you know, and HER2 being an ADC that is developed on top of Herceptin and possibly given with Pertuzumab, it really disrupts the subsequent therapies. And so it becomes unclear what therapies to use after in HER2, after patients have had in HER2. That's the opportunity for Xanodatumab, where we have prior data showing activity. So we're positioning this post in HER2. We said there are about 150,000 patients with HER2-positive breast cancer in the markets that we serve, and we think we'd be the first to have data in this post-HER2 setting. The study is being conducted essentially in third-line plus because currently patients get the Cleopatra regimen, which is chemo, herceptin, progetta, and then HER2 is approved in the second line. But if that moves forward, you can imagine use in the second-line process.

And just to wrap up the second part of that question, yeah, we're obviously very excited about the opportunity to bring Zahira into the breast cancer setting. Too early for us to comment at the moment on the pricing strategy there.

Thank you.

And just to add there that that study currently is expected to read out at the end of next year or early the following year. So we should complete enrollment next year and we will have some time to continue to consider price as Sam mentioned.

Thank you. Our next question comes from the line of Mohit Bansal with Wells Fargo. Your line is now open.

Great. Thank you very much and congrats on all the progress. Just want to double click on your Zywave comments regarding first half being mostly unaffected versus the second half. Can you just talk a little bit more about that? So what are you expecting the competitive pressure on Zyavib to be like in the second half in your guidance? And then as you get into, like, next year, how do you see this franchise evolving in the face of low sodium competition?

Yes, we're obviously very clear to the momentum that we've generated through 2025. You know, Zywave delivering $1.7 billion, 12% growth year over year, and that momentum was carried into the fourth quarter with, you know, 16% growth in the fourth quarter. I've already mentioned the numbers of patient ads that we saw throughout the year. So the messages that we've been conveying to the market are really resonating. Zywade is highly differentiated in the market, the only low-sodium option, the only octabate with an IH indication. So that gives us enormous confidence. We have good payer contracts in place as we go into the year. But, of course, you know, the landscape, the sleep landscape is evolving. From where we sit today, knowing what we know, we know that there are two generics coming into the market, two multi-source generics, plus you have Hikma in the market as well. We don't expect significant, we really expect minimal impact on the Zyway business in the first half of 2026. In the second half of the year, obviously, we've got that increasing competitive dynamics. Phil mentioned that, you know, generics are likely to build their volume throughout the year. And we could see also the entry of at least one new rate promoting agent in the market as well. So given all of those things, we may see a different dynamic emerging in the second half of the year. But we will continue to focus on conveying the significant differentiation of BiWave, which is clearly resonating with prescribers and patients. And we'll be continuing to convey those messages to those customers. And we We expect to continue to see the product being highly appreciated in the market.

Thank you. Our next question comes from the line of David Hong with Deutsche Bank. Your line is now open.

Congrats on the quarter, and thanks for taking my question. So maybe a follow-up to some of the questions here on the Sleep-Wake franchise. Just in terms of your payer contracts, you mentioned that you feel confident about the ones you have in place. Is there any possibility for the payers to ask you to come back to the table to, you know, maybe negotiate over the course of the year? And could you envision any step edits or other restrictions being put into place by payers that might favor the multisource generic? Thank you.

Yes. Whilst we do have good contracts in place at the end of the year, there's always the possibility that the payers may want to approach us if there's a significant event in the market with multiple generics. But one thing that is worth considering is that the rebates that the payers have for the products as significant as Zywave are quite material and very significant. So, of course, you know, they'll be wanting to consider coming back to us to renegotiate and walking away from those rebates. So, in order for them to have confidence to do that, of course, they'd want to be confident that the generics have built enough volume and support in the market. And also, another consideration there is that even if step-edicts were put in place, and certainly that is an option, We know that physicians and patients really value the low-sodium option. I mentioned before that, you know, well over half, about 70% of patients with narcolepsy and IH have a cardiovascular or cardiometabolic comorbidity. And so really the last thing you'd want to be giving those patients is a heavy salt dose every single day for a chronic condition. So, even with a step-edit, we believe that there would be a strong commitment from healthcare providers to move through those step-edits to get to low-sodium by-waves. So, all of these things are possible, but I think the strength of our differentiation, it doesn't change. We're still the only low-sodium option in the market, and that will, I believe, still resonate with some prescribers and patients.

Phil? Maybe David will add something really quickly. And we have had a small number of accounts, for example, in 2025, where VAG was put in a more privileged position and basically had to step through that to get to ZyWave. And we saw physicians very motivated to do that for their patients, given the unique safety advantage that ZyWave conveys, as Sam has mentioned. And we had leading share effectively in that account. So we've seen this happen at least on a small scale already, and, again, it reinforces our belief that ZyWave has a unique value proposition marketplace that neither the AG in the past or the emergence of the high-sodium generics can replace.

Thank you. Our next question comes from the line of Brian Squarney with Baird. Your line is now open.

Hey, good afternoon. Congrats on the quarter, and thanks for taking that question. Maybe for Sam, the Medeso launch looks really off to a much better start than I think a lot of us expect. I'm just wondering how you think about these initial launch metrics, and I understand that they're early and contextualizing the greater than $500 million U.S. sales guidance and how the action study may come into play there. Do you think you need to hit in that study to achieve that guidance, or can you get there given the current label, and if action were to hit, do you envision that would change the peak guidance?

Yeah, thanks for the question. Yeah, we're clearly delighted with the early phase of the launch of Madejo, $48 million in 2025, which is just, you know, four and a half months of launch is really terrific. We obviously, this market is a market which has seen very little development over the last 60 years. So the launch of Madejo was one that was highly anticipated by physicians and by patients. We had very high awareness and really strong advocacy support from patient organizations, and obviously a very high unmet need for this treatment. So we've seen really strong uptake. I think in relation to the peak sales opportunity, we obviously, as we see the uptake and the way this product's been accepted into the market, We're increasingly confident about the $500 million peak sales opportunity. That does assume that we hit on the first line action study to achieve that, because what that means is that the product will, you know, get used earlier, immediately after radiotherapy, as opposed to waiting for progression, which is the label that we currently have. There's still quite a lot that we need to understand about this market. For example, what really is the real world duration of treatment? That's going to be quite an important factor in the overall size of the opportunity. And also, what is the true, you know, epidemiology in this market as well? We've used the best available data to do that, but obviously, the longer we're on market, the more confidence we're going to get around these areas. Testing rates are also something that we've been working on, we've seen that steadily increasing as well. So, all the launch metrics are very positive, and we are increasingly confident about that $500 million sales opportunity.

Thank you. Our next question comes from the line of David Anselm with Piper Sandler. Your line is now open.

Thanks. So maybe a bigger picture question about the sleep-wake franchise. So obviously you mentioned 441. You are looking at other orexin agonists. But absent that, would you consider making a significant acquisition, in other words, an inorganic way of trying to extend the life of your sleep-wake franchise, bearing in mind that eventually, as I believe, will go off patent? And maybe taking a step back, strategically, do you just simply toggle over to oncology and neuroscience and neurology more completely and look at sleep-wake as sort of a more mature franchise that you manage for cash? How are you thinking about that?

Yeah, I'll jump in on that one. So as we look at our strategy going forward and where we're investing, we are investing in the growth of each of these current franchises, sleep and epilepsy and oncology. And we think there are multiple opportunities there, both within our current portfolio and opportunities to invest in licensing and M&A to augment those opportunities. With being specific on particular opportunities we're interested in probably isn't that helpful. I would say from a medical perspective, we're excited to see the new innovations coming from Erexins. And as Rob mentioned, we continue to be active in this area in terms of early programs. But we also see there's still opportunity there in terms of really understanding, is there benefit for nighttime disrupted sleep? We seem to see right now data that points to orexins being complementary with oxabates. And we have yet to see any PSG data or otherwise on orexins that will tell us that we'll have therapies that can be fully treated without being augmented with a therapy like an oxabate that can address the nighttime symptoms. But if we just step back and look at our business and the growth drivers, we believe we have a highly differentiated product in Zywave, as Sam has described. We're in a strong position as we go into this year. We have a highly differentiated franchise in Epidiolex with multiple early-stage programs that we're advancing, a lot of opportunity across oncology, whether that's Medeso or the Zepselka first-line approval, and a really meaningful growth driver with Zanidatamab that we're investing in heavily. So that's how we're thinking more broadly about our investments and where we're headed and how we think about investing across the franchises.

Thank you. Our next question comes from the line of Joseph Thome with TD Cowan. Yelani Snow.

Hi there. Good evening, and thank you for taking my question. Maybe the one on the – it looks like another trial from the Chimerics acquisition was launched in PCPG. Can you just talk a little bit about the size of that market, maybe as it relates to the market for H3K27M? And then maybe a bit of a follow-on to the last question. Obviously, with Epidiolex, you levered up the balance sheet, and you've worked to kind of deliver that over the years. You just mentioned, you know, BD several times through the call. I guess how comfortable are you to lever up the balance sheet again? And is that something that you're considering and kind of the size of the transactions that would be helpful?

Rob, can you cover PCPG in terms of what we're aiming to achieve there with that study? And then maybe Phil, do you want to jump in on the balance sheet?

Sure. Happy to. So, just to remind the group that the 206 asset is a follow-on to MODESO, hitting the same CLP-P and dopamine receptors, but potentially with greater potency. And we have an opportunity based on preclinical data that we have to evaluate that in theochromocytoma and paraganglioma, which are rare neuroendocrine tumors. And so, this will serve as a proof of contact, at least in that tumor type, which we've prioritized to demonstrate the activity of that next generation molecule.

And, John, your question regarding leverage, we certainly have the leverage substantially on a net basis, down to about one and a half turns of EBITDA at the end of 2025. And we do have the ability to go ahead and lever up for a transaction or series of transactions. If we find ones that are particularly compelling in terms of benefits they can bring to patients, and our conviction that we can create significant value for JAS shareholders as well. I would say over a longer arc of time, I think the expectation is that you will see debt be less and less of the capitalization of the company over time. but I would encourage you to think of that as probably a sawtooth with some peaks as we do transactions, particularly if they're M&A, but over the long term would expect that overall capitalization will be more weighted towards equity and less towards debt as we move forward.

Thank you. Our next question comes from the line of Leonid Timoshev with RBC. Your line is now open.

Hey, guys. Thanks for taking my question. I wanted to ask on Epidiolex. You mentioned both the fact that patent settlements extending the clip out to the late 2030s and interesting continuing to grow that franchise. So I guess I'm curious how you're seeing or what you need to do to continue to grow the adult side of that business and maybe what you're seeing currently with adult uptake, maybe which is needed and sort of how you...

Yeah, thanks for the question. Yeah, we were delighted in 2025 to achieve the $1.1 billion blockbuster status for Epidiolex, delivering 9% growth year over year. I think, you know, we've continued to drive really strong momentum behind this brand. With our current license indications, there still remains significant opportunity for us to make an impact. We've identified the adult segment as been a key source of future growth. We have invested there in long-term care teams that are going to those long-term care facilities. Because what we do know is that there are a significant number of patients, particularly LGS patients, who reside in long-term care settings that have not had a definitive diagnosis of LGS. So we've invested with that team in a particular tool, the REST LGS tool, to help physicians diagnose those patients so that they can have the opportunity to benefit from Epidiolex. So that's a key source of growth. In addition to that, we know that persistence is a key hallmark of Epidiolex. Patients do very, very well on Epidiolex, and they can stay on treatment for a long time. But if the patients have access to our jazz cares with the nurse team that we have supporting those patients, then they stay on treatment even longer. So we're investing a lot in making sure that more patients can benefit from our JAWS CARES program. In addition to that, we've generated data that become data that really reinforces the benefit of epidiolex and seizure and non-seizure benefits. So there's a number of things within our existing label indication, sources of growth, which we're very confident in that we're going to be making investments in. And in addition to that, given the very late 2030s durability of the brand, we're also investing in other areas as well. So, for example, new formulations of Epidiolex will be particularly beneficial for adults, as well as a Phase 1B trial in focal onset seizures as well. So, you know, we're excited about the potential of Epidiolex to continue to grow and bringing it to more patients.

Thank you. Our next question comes from the line of Ami Fadia with Needham & Company. Your line is now open.

Good afternoon, thanks for taking my question. Just on the ZANI breast cancer study, can you remind us if you've shared any details around the covering of the study? And ahead of the final readout, is there opportunity to see any interim data? And also, maybe just remind us of the regulatory endpoints that we would be, that, you know, all the regulatory requirements in terms of the endpoints. Thank you.

Sure. Thanks for the question. It's a two-arm trial where patients are assigned their chemotherapy backbone by the treating physician and then randomized to receive either Herceptin versus Anadidamab. So a head-to-head comparison of Danny versus Herceptin again, but in a different setting. It's 550 patients, which is listed on clinicaltrials.gov, And we have an opportunity to look at progression-free survival along with an interim analysis of overall survival before the final readout on overall survival.

Thank you. This concludes the question and answer session. I would now like to hand the call back over to Renee Gallo for closing remarks.

Great. Thank you, operator. And just a quick reminder to our listeners, thank you for joining in the call today to give you a quick overview of some of our upcoming catalysts. As we've mentioned, we're really excited about XANI datamab and the breast cancer study that Rob was just describing. We also have the opportunity, as we mentioned on the call, for an approval and a launch in the second half of this year. We do plan to get our FDA submission complete this quarter and expect an upcoming publication in a premier peer-reviewed journal with our second interim OS readout for our XANI plus chemo R&B are anticipated to occur mid-year. In addition to the broader development program, as I mentioned earlier, we have readout planned at the end of next year for our metastatic breast cancer study or early in 2028, and we're excited about the opportunity there given the underlying backbone comparison is against Annie versus Herceptin. This year we have the opportunity for our first full year of sales in DoorDavacron and expect the action trial supporting that that Sam described to read out at the end of this year or the beginning of next year. And that will be our first OS readout of that study. So strong momentum coming into this year from 2025. And we do expect to announce one or more deals in 2026 on the corporate development front. So I'd like to close today's call by thanking all of our JAZZ colleagues for their efforts, our partners and stakeholders for their continued confidence and support. 2025 was quite an impactful year for JAZZ and I look forward to continuing our work together in 2026. So thank you all for joining.

This concludes today's conference. Thank you for your participation. You may now disconnect.