Jazz Receives FDA Label Expansion for Rylaze; Maintaining $187 FVE, Shares Undervalued

Jazz Pharmaceuticals announced it received Food and Drug Administration approval for the expansion of Rylaze’s label to include a Monday/Wednesday/Friday dosing schedule. Rylaze was first approved in the U.S. in June 2021 for adult and pediatric patients with acute lymphoblastic leukemia and lymphoblastic lymphoma. We maintain our fair value estimate of $187 per share, and shares are currently trading at an attractive entry point about 22% below our fair value estimate. We forecast about $3.7 billion in revenue in 2022, representing about 19% growth, which is driven by the company’s strong drug launches. We maintain our no-moat and negative trend ratings.