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Here's Why You Should Consider Investing in JAZZ Stock Now
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Jazz Pharmaceuticals (JAZZ - Free Report) is a good drugmaker to add to one’s portfolio as it sports a Zacks Rank #1 (Strong Buy). Here we discuss the reasons for the same.
Shares of Jazz have risen 4.5% in the year so far against the industry’s 30% decline. Earnings estimates for 2022 have risen from $17.06 to $17.35 per share while that for 2023 have gone up from $18.15 per share to $18.60 per share over the past 90 days.
Image Source: Zacks Investment Research
Jazz’s sleep disorder portfolio looks strong with its drugs, Xyrem and Xywav to treat excessive daytime sleepiness (EDS) and cataplexy in narcolepsy patients. Xywav is a low-sodium formulation of Jazz’s legacy drug, Xyrem, which was approved by the FDA in July 2020 for EDS and cataplexy in narcolepsy patients.
In August 2021, the drug’s label was expanded for treating idiopathic hypersomnia. Xywav has shown robust uptake so far. The drug generated more than $535 million in sales in 2021. Sales were mainly driven by patients switching from Xyrem. The switching of patients seems promising as Xyrem is set to face generic competition in the second half of 2022. Jazz expects an authorized generic version of Xyrem to be launched by Hikima Pharmaceuticals in late 2022 or January 2023, which should hurt sales. The continued uptake of Xywav will reduce the dependence of Jazz on its major revenue generator, Xyrem.
Jazz divested its U.S. rights of another sleep disorder drug, Sunosi to Axsome Therapeutics (AXSM - Free Report) this year. Jazz received an upfront payment of $53 million from Axsome Therapeutics and is eligible to receive royalties on future U.S. sales of the drug in approved indications as well as in any new indication approved in the future.
Apart from a strong sleep disorder portfolio, Jazz also markets four oncology drugs that were internally developed or added through collaborations. The marketed oncology drugs generated almost 24% of product revenues in 2021. These products not only bring additional revenues but also diversify Jazz’s marketed portfolio. Sales are being driven by growth across both older drugs (Defitelio and Vyxeos) and newer drugs (Rylaze and Zepzelca), with the latter’s contribution consistently increasing over time.
The company is also developing a few new oncology candidates and is also focused on expanding the labels of marketed drugs — Zepzelca and Vyxeos. Successful label expansion and new drug development will further boost revenues.
Jazz has added several drugs to its marketed portfolio and clinical-stage candidates to its pipeline through acquisitions or collaborations. In May 2021, the company acquired the British cannabinoid drug company, GW Pharmaceuticals. The acquisition boosted and diversified the company’s neuroscience portfolio, which only had sleep disorder drugs, with the addition of Epidiolex and Sativex approved for treating epilepsy and MS, respectively. The acquisition also marked the entry of Jazz into the promising new field of cannabidiol drugs. Epidiolex and Sativex generated nearly 20% of product revenues in the first half of 2022.
Among more recent deals, in April 2022, Jazz acquired exclusive global development and commercialization rights to Werewolf Therapeutics' (HOWL - Free Report) promising cancer drug candidate, JZP898 (previously WTX-613), a differentiated, conditionally-activated, IFNα therapy. Werewolf Therapeutics' WTX-613 is currently in preclinical development and JAZZ expects to file an investigational new drug application to the FDA in 2023 to begin clinical development of WTX-613.
In November 2020, the company acquired a fatty acid amide hydrolase inhibitor program, including JZP150 from SpringWorks Therapeutics (SWTX - Free Report) . Jazz is developing SpringWorks Therapeutics’ JZP150 for the potential treatment of post-traumatic stress disorder and associated symptoms in a phase II study.
Jazz’s new drugs like Xywav, Rylaze and Zepzelca along with the recently-acquired drugs generated 59% of Jazz’s net product sales in 2021. The company expects these drugs to generate 65% of product revenues in 2022. It expects its total revenues to witness a CAGR of more than 17% by 2025 to reach $5 billion.
Image: Bigstock
Here's Why You Should Consider Investing in JAZZ Stock Now
Jazz Pharmaceuticals (JAZZ - Free Report) is a good drugmaker to add to one’s portfolio as it sports a Zacks Rank #1 (Strong Buy). Here we discuss the reasons for the same.
Shares of Jazz have risen 4.5% in the year so far against the industry’s 30% decline. Earnings estimates for 2022 have risen from $17.06 to $17.35 per share while that for 2023 have gone up from $18.15 per share to $18.60 per share over the past 90 days.
Image Source: Zacks Investment Research
Jazz’s sleep disorder portfolio looks strong with its drugs, Xyrem and Xywav to treat excessive daytime sleepiness (EDS) and cataplexy in narcolepsy patients. Xywav is a low-sodium formulation of Jazz’s legacy drug, Xyrem, which was approved by the FDA in July 2020 for EDS and cataplexy in narcolepsy patients.
In August 2021, the drug’s label was expanded for treating idiopathic hypersomnia. Xywav has shown robust uptake so far. The drug generated more than $535 million in sales in 2021. Sales were mainly driven by patients switching from Xyrem. The switching of patients seems promising as Xyrem is set to face generic competition in the second half of 2022. Jazz expects an authorized generic version of Xyrem to be launched by Hikima Pharmaceuticals in late 2022 or January 2023, which should hurt sales. The continued uptake of Xywav will reduce the dependence of Jazz on its major revenue generator, Xyrem.
Jazz divested its U.S. rights of another sleep disorder drug, Sunosi to Axsome Therapeutics (AXSM - Free Report) this year. Jazz received an upfront payment of $53 million from Axsome Therapeutics and is eligible to receive royalties on future U.S. sales of the drug in approved indications as well as in any new indication approved in the future.
Apart from a strong sleep disorder portfolio, Jazz also markets four oncology drugs that were internally developed or added through collaborations. The marketed oncology drugs generated almost 24% of product revenues in 2021. These products not only bring additional revenues but also diversify Jazz’s marketed portfolio. Sales are being driven by growth across both older drugs (Defitelio and Vyxeos) and newer drugs (Rylaze and Zepzelca), with the latter’s contribution consistently increasing over time.
The company is also developing a few new oncology candidates and is also focused on expanding the labels of marketed drugs — Zepzelca and Vyxeos. Successful label expansion and new drug development will further boost revenues.
Jazz has added several drugs to its marketed portfolio and clinical-stage candidates to its pipeline through acquisitions or collaborations. In May 2021, the company acquired the British cannabinoid drug company, GW Pharmaceuticals. The acquisition boosted and diversified the company’s neuroscience portfolio, which only had sleep disorder drugs, with the addition of Epidiolex and Sativex approved for treating epilepsy and MS, respectively. The acquisition also marked the entry of Jazz into the promising new field of cannabidiol drugs. Epidiolex and Sativex generated nearly 20% of product revenues in the first half of 2022.
Among more recent deals, in April 2022, Jazz acquired exclusive global development and commercialization rights to Werewolf Therapeutics' (HOWL - Free Report) promising cancer drug candidate, JZP898 (previously WTX-613), a differentiated, conditionally-activated, IFNα therapy. Werewolf Therapeutics' WTX-613 is currently in preclinical development and JAZZ expects to file an investigational new drug application to the FDA in 2023 to begin clinical development of WTX-613.
In November 2020, the company acquired a fatty acid amide hydrolase inhibitor program, including JZP150 from SpringWorks Therapeutics (SWTX - Free Report) . Jazz is developing SpringWorks Therapeutics’ JZP150 for the potential treatment of post-traumatic stress disorder and associated symptoms in a phase II study.
Jazz’s new drugs like Xywav, Rylaze and Zepzelca along with the recently-acquired drugs generated 59% of Jazz’s net product sales in 2021. The company expects these drugs to generate 65% of product revenues in 2022. It expects its total revenues to witness a CAGR of more than 17% by 2025 to reach $5 billion.
You can see the complete list of today’s Zacks #1 Rank stocks here.