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Here's Why JAZZ Stock Is an Unconventional Cannabis Investment
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Key Takeaways
Epidiolex now drives over a quarter of Jazz's product sales and is on track for blockbuster status.
Jazz balances growth with a strong oncology and neuroscience portfolio beyond cannabis therapies.
Acquisition of Chimerix added Modeyso, its sixth oncology drug, after FDA approval for certain gliomas.
JAZZ Pharmaceuticals (JAZZ - Free Report) is not your typical cannabis stock involved in cultivation, processing, or sales of marijuana products. Instead, this commercial-stage biotech is the only one to market an FDA-approved drug that contains a purified drug substance derived from marijuana.
The company’s involvement in the cannabis sector centers on Epidiolex, a cannabidiol drug approved for different forms of epilepsy. This drug, which was added to Jazz’s portfolio following the acquisition of GW Pharmaceuticals in 2021, marked its entry into the medical cannabis space.
Let's take a closer look at JAZZ’s prospects and challenges from an investor's standpoint.
Epidiolex — Powering JAZZ’s Growth Story
Since joining Jazz’s portfolio, Epidiolex has evolved into one of its most important growth engines. This CBD-derived drug — approved to treat seizures associated with Lennox-Gastaut syndrome, Dravet syndrome and tuberous sclerosis complex — now accounts for over a quarter of the company’s total product sales.
Epidiolex’s addition has not only strengthened Jazz’s neuroscience portfolio but also reduced its reliance on the oxybate franchise. In the first half of 2025, Jazz added over $469 million from the drug’s sales, up 5% year over year, driven by expanding global launches and rising adoption among prescribers. With this sales momentum expected to continue in future quarters, Epidiolex is on track to achieve blockbuster status in 2025.
This growth is also backed by a rapidly expanding market. Analysts have projected the global medical cannabis industry to cross the $130 billion mark by 2032, supported by the increasing acceptance of cannabis for therapeutic purposes. As one of the few established pharmaceutical firms with an FDA-approved cannabis-based product, Jazz holds a distinctive edge in capturing this opportunity.
Not a Pure Cannabis Play: JAZZ’s Advantage
Although cannabis-derived therapies like Epidiolex get most of the spotlight, Jazz Pharma has established itself as a diversified biopharma player with strong positions across the neuroscience and oncology segments.
On the neuroscience front, Jazz continues to benefit from its oxybate franchise. Xywav, a low-sodium formulation, has become another key growth driver, offering treatment for narcolepsy patients with cataplexy or excessive daytime sleepiness. Unlike Xyrem, it does not carry the warnings and precautions associated with high sodium intake. This makes Xywav the only approved oxybate therapy without such precautions. Xywav is also the only FDA-approved treatment for the full spectrum of idiopathic hypersomnia (IH).
Jazz’s oncology franchise adds an important balance to the portfolio. Key marketed therapies include Defitelio, Vyxeos, Zepzelca, Rylaze/Enrylaze and Ziihera, which collectively contributed close to 28% of product sales in the first half of 2025. The company is also focused on expanding the labels of these marketed drugs.
In addition, Jazz also strengthens its revenue base with acquisitions. Its recent $935 million purchase of Chimerix brought Modeyso (dordaviprone) into the fold, which secured FDA approval last month to treat certain glioma (brain tumor) patients. With this approval, Jazz added the sixth oncology drug to its commercial portfolio, further reinforcing its position outside the cannabis space.
Pipeline Setbacks Persist
Like many biopharma players, Jazz has faced hurdles in its quest to expand the pipeline. Earlier this year, the company discontinued development of suvecaltamide for both essential tremor and Parkinson’s disease-related tremor, after the therapy failed to meet primary and secondary endpoints in separate phase II studies. Management is currently exploring options for the drug’s future.
Jazz also reported underwhelming results for its FAAH inhibitor, JPZ150, in adults with post-traumatic stress disorder (PTSD). Data from a mid-stage study, released in 2023, showed that the study failed to achieve both its primary and secondary endpoints, marking another setback for Jazz’s innovation efforts.
JAZZ’s Stock Price Performance & Estimates
Shares of Jazz have gained 5% year to date compared to the industry’s 4% growth, as shown in the chart below.
Image Source: Zacks Investment Research
EPS estimates for 2025 and 2026 have trended upward over the past 60 days — a stronger trajectory than that of pure-play cannabis names like Aurora Cannabis (ACB - Free Report) and Green Thumb Industries (GTBIF - Free Report) , whose estimates have moved lower during the same period.
Image Source: Zacks Investment Research
How to Play the Stock?
Though pipeline setbacks remain a concern, this Zacks Rank #3 (Hold) company offers a diversified revenue base anchored by its neuroscience and oncology franchises, with Epidiolex providing unique exposure to the cannabis therapeutics market.
Though recent comments from Donald Trump have reignited hopes for U.S. cannabis reform, meaningful rescheduling appears unlikely this year. For now, Jazz may suit investors seeking balanced biopharma exposure rather than a direct cannabis play, with consistently rising estimates highlighting analysts’ optimistic outlook for the stock.
Image: Bigstock
Here's Why JAZZ Stock Is an Unconventional Cannabis Investment
Key Takeaways
JAZZ Pharmaceuticals (JAZZ - Free Report) is not your typical cannabis stock involved in cultivation, processing, or sales of marijuana products. Instead, this commercial-stage biotech is the only one to market an FDA-approved drug that contains a purified drug substance derived from marijuana.
The company’s involvement in the cannabis sector centers on Epidiolex, a cannabidiol drug approved for different forms of epilepsy. This drug, which was added to Jazz’s portfolio following the acquisition of GW Pharmaceuticals in 2021, marked its entry into the medical cannabis space.
Let's take a closer look at JAZZ’s prospects and challenges from an investor's standpoint.
Epidiolex — Powering JAZZ’s Growth Story
Since joining Jazz’s portfolio, Epidiolex has evolved into one of its most important growth engines. This CBD-derived drug — approved to treat seizures associated with Lennox-Gastaut syndrome, Dravet syndrome and tuberous sclerosis complex — now accounts for over a quarter of the company’s total product sales.
Epidiolex’s addition has not only strengthened Jazz’s neuroscience portfolio but also reduced its reliance on the oxybate franchise. In the first half of 2025, Jazz added over $469 million from the drug’s sales, up 5% year over year, driven by expanding global launches and rising adoption among prescribers. With this sales momentum expected to continue in future quarters, Epidiolex is on track to achieve blockbuster status in 2025.
This growth is also backed by a rapidly expanding market. Analysts have projected the global medical cannabis industry to cross the $130 billion mark by 2032, supported by the increasing acceptance of cannabis for therapeutic purposes. As one of the few established pharmaceutical firms with an FDA-approved cannabis-based product, Jazz holds a distinctive edge in capturing this opportunity.
Not a Pure Cannabis Play: JAZZ’s Advantage
Although cannabis-derived therapies like Epidiolex get most of the spotlight, Jazz Pharma has established itself as a diversified biopharma player with strong positions across the neuroscience and oncology segments.
On the neuroscience front, Jazz continues to benefit from its oxybate franchise. Xywav, a low-sodium formulation, has become another key growth driver, offering treatment for narcolepsy patients with cataplexy or excessive daytime sleepiness. Unlike Xyrem, it does not carry the warnings and precautions associated with high sodium intake. This makes Xywav the only approved oxybate therapy without such precautions. Xywav is also the only FDA-approved treatment for the full spectrum of idiopathic hypersomnia (IH).
Jazz’s oncology franchise adds an important balance to the portfolio. Key marketed therapies include Defitelio, Vyxeos, Zepzelca, Rylaze/Enrylaze and Ziihera, which collectively contributed close to 28% of product sales in the first half of 2025. The company is also focused on expanding the labels of these marketed drugs.
In addition, Jazz also strengthens its revenue base with acquisitions. Its recent $935 million purchase of Chimerix brought Modeyso (dordaviprone) into the fold, which secured FDA approval last month to treat certain glioma (brain tumor) patients. With this approval, Jazz added the sixth oncology drug to its commercial portfolio, further reinforcing its position outside the cannabis space.
Pipeline Setbacks Persist
Like many biopharma players, Jazz has faced hurdles in its quest to expand the pipeline. Earlier this year, the company discontinued development of suvecaltamide for both essential tremor and Parkinson’s disease-related tremor, after the therapy failed to meet primary and secondary endpoints in separate phase II studies. Management is currently exploring options for the drug’s future.
Jazz also reported underwhelming results for its FAAH inhibitor, JPZ150, in adults with post-traumatic stress disorder (PTSD). Data from a mid-stage study, released in 2023, showed that the study failed to achieve both its primary and secondary endpoints, marking another setback for Jazz’s innovation efforts.
JAZZ’s Stock Price Performance & Estimates
Shares of Jazz have gained 5% year to date compared to the industry’s 4% growth, as shown in the chart below.
Image Source: Zacks Investment Research
EPS estimates for 2025 and 2026 have trended upward over the past 60 days — a stronger trajectory than that of pure-play cannabis names like Aurora Cannabis (ACB - Free Report) and Green Thumb Industries (GTBIF - Free Report) , whose estimates have moved lower during the same period.
Image Source: Zacks Investment Research
How to Play the Stock?
Though pipeline setbacks remain a concern, this Zacks Rank #3 (Hold) company offers a diversified revenue base anchored by its neuroscience and oncology franchises, with Epidiolex providing unique exposure to the cannabis therapeutics market.
Though recent comments from Donald Trump have reignited hopes for U.S. cannabis reform, meaningful rescheduling appears unlikely this year. For now, Jazz may suit investors seeking balanced biopharma exposure rather than a direct cannabis play, with consistently rising estimates highlighting analysts’ optimistic outlook for the stock.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.