Jazz Earnings: Healthy Start to Year With Focus on Commercial Execution; Shares Undervalued

Jazz Pharmaceuticals reported healthy first-quarter results highlighted by total revenue of $893 million, representing a 10% increase from the prior-year period thanks to the company’s commercialization efforts. Strong performances from Xywav (for excessive daytime sleepiness), Epidiolex (for childhood epilepsy), and Rylaze (for leukemia) have continued to be Jazz’s primary growth drivers. We maintain our $187 fair value estimate and believe the shares are currently trading at an attractive entry point, about 28% below our fair value estimate.