Jazz's second-quarter earnings of $1.78 per share were above the
year-ago earnings of $1.27 per share. Quarterly revenues increased
40% year over year to $291.2 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. The Sigma-Tau deal
also looks good. We believe the company will continue to pursue
deals/acquisition to boost its product portfolio and pipeline.
Meanwhile, the Xyrem patent litigation is 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
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-15) 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, and the
acquisition of worldwide development, manufacturing and commercial
rights to JZP-110 (EDS in patients suffering from narcolepsy) from
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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