Jazz' fourth-quarter adjusted earnings of $1.56 per share were
below the Zacks Consensus Estimate of $1.64. Year-ago earnings were
$1.38. 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' efforts to boost sales through label
expansions. We are positive on recent deals (Gentium acquisition).
We believe the company will continue to pursue such deals to boost
its product portfolio and pipeline. Meanwhile, the Xyrem patent
litigation remains a matter of concern. 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 generate almost
90% of the company's total revenues.
Jazz' pipeline consists of candidates like Leukotac (phase III
in the EU, steroid-refractory acute graft vs. host disease) and
Asparec (phase I, ALL in patients who are hypersensitive to E. coli
asparaginase). The U.S. Food and Drug Administration (FDA) had
granted fast track designation to Asparec.
Jazz has been very active on the acquisition front. Recent deals
include the upcoming acquisition of biopharma company Gentium, and
the acquisition of worldwide development, manufacturing and
commercial rights to ADX-N05 (EDS in patients suffering from
narcolepsy) from Aerial BioPharma.
Earlier acquisitions include global development and
commercialization rights to JZP-386 from Concert Pharmaceuticals,
Inc. in Feb 2013 and EUSA Pharma Inc., (adding Erwinaze to the
portfolio) in Jun 2012. 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 $586 million in 2012.
Jazz Pharmaceuticals Public Limited Company (JAZZ):
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