Back to top

Analyst Blog

Zacks Equity Research

JAZZ to Sell Women's Health Suite

JAZZ

 ZacksTrade Now

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Specialty pharmaceutical company, Jazz Pharmaceuticals plc (JAZZ - Analyst Report) recently signed a definitive agreement with Meda Pharmaceuticals Inc., the US subsidiary of Meda AB, for the sale of its women’s health business.

As per the terms of the deal, Meda will take over a portfolio of six out of eight drugs from Jazz Pharma’s women’s health business for $95 million in cash. Meda will also offer employment to approximately 60 employees of Jazz Pharma to join its work force.

The drugs to be divested by Jazz include Elestrin, indicated for the treatment of hot flushes in menopausal women.

Other drugs for sale are Gastrocrom, Natelle One (prenatal vitamin), AVC Cream, Gesticare DHA (prenatal multi-vitamin) and Urelle (urinary antiseptic).

Jazz Pharma reported net sales of $30.4 million in 2011 from the above mentioned portfolio of six drugs.

Subject to the necessary conditions, the transaction is expected to close in the fourth quarter of 2012. the company expects to book a non-recurring profit in the fourth quarter of 2012, following the sale of the women’s health business.

The company will provide additional details regarding the financial impact of the deal once the sale goes through. The sale of the women’s health business should allow Jazz Pharma to focus on its core areas like narcolepsy, oncology, pain and psychiatry.

We note that Jazz Pharma was in the news recently with a new patent related to its oral solution Xyrem, which is indicated for the treatment of cataplexy and daytime sleepiness in patients diagnosed with narcolepsy.

The new patent is the eighth patent of Xyrem, listed in the Food and Drug Administration’s (FDA) Orange Book. It will expire in December 2019.

Our Recommendation

Currently, we have a Neutral recommendation on Jazz Pharmaceuticals. However the stock carries a Zacks #2 Rank (short-term Buy rating).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%