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 Pharma has
also progressed well with its pipeline. Meanwhile, the Xyrem patent
litigation is a matter of concern. Sooner-than-expected entry of
Xyrem generics can 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 generate
approximately 88% of the company's total revenues.
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 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 $872.4 million in 2013, up 49% from
the year-ago period.
Jazz Pharmaceuticals Public Limited Company (JAZZ):
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