Jazz's third-quarter earnings of $2.07 per share were above the
year-ago earnings of $1.61 per share. Quarterly revenues increased
32% year over year to $306.6 million. We are encouraged by the
strong growth exhibited by key products, Xyrem and Erwinaze. Both
should continue performing well. We are also positive on Jazz's
efforts to boost sales through label expansion. Jazz has also
progressed well with its pipeline. Meanwhile, the Xyrem patent
challenges are a matter of concern. The sooner-than-expected entry
of Xyrem generics would be a huge setback for the company. We
maintain a Neutral recommendation on the stock.
Dublin, Ireland based Jazz Pharmaceuticals Public Limited
Company is a specialty biopharmaceutical company with a focus on
developing and commercializing drugs specifically targeting unmet
medical needs. Key drugs at Jazz include Xyrem for cataplexy and
excessive daytime sleepiness (EDS) in narcolepsy patients, Erwinaze
for acute lymphoblastic leukemia (ALL) patients who have developed
hypersensitivity to E. coli-derived asparaginase and Prialt for
severe chronic pain in adult patients who are intolerant or
refractory to other treatments. These three drugs generated
approximately 88% of the company's total revenues in 2013.
Jazz's pipeline consists of candidates like Leukotac (phase III
in the EU, steroid-refractory acute graft vs. host disease,
preliminary data expected by mid-2015), and JZP-416 (phase I, ALL
in patients who are hypersensitive to E. coli asparaginase). The
FDA has granted fast track designation to JZP-416.
Jazz has been very active on the acquisition front. Recent deals
include the acquisition of biopharma company Gentium adding
defibrotide (EU trade name: Defitelio) to its portfolio. Defitelio
is available for the treatment of severe hepatic veno-occlusive
disease (VOD) in patients over one month of age undergoing
hematopoietic stem cell transplantation therapy. Jazz acquired
rights to defibrotide in all countries in the Americas including
the U.S. from Sigma-Tau. Jazz has also acquired worldwide
development, manufacturing and commercial rights to JZP-110 (EDS in
patients suffering from narcolepsy and obstructive sleep apnea)
from Aerial BioPharma.
Earlier deals include the Concert Pharmaceuticals agreement for
JZP-386 (Feb 2013) and the Jun 2012 EUSA Pharma Inc. (adding
Erwinaze to the portfolio) acquisition. Prior to this, in Jan 2012,
the erstwhile Jazz Pharmaceuticals, Inc. and Azur Pharma Limited
merged to form Jazz Pharmaceuticals as we know it.
Jazz generated revenues of $872.4 million in 2013, up 49% from
the year-ago period.
Jazz Pharmaceuticals Public Limited Company (JAZZ):
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