Jazz Pharmaceuticals Public Limited Company (JAZZ): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report

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Summary:
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.


Overview:

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.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.




This article appears in: Investing , Stocks

Referenced Stocks: EDS , ALL , VOD , JAZZ

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