Jazz Earnings: Strong Commercial Execution of Xywav Drives Growth; Shares Undervalued

Jazz Pharmaceuticals reported second-quarter results highlighted by total revenue of $957 million, representing a 3% increase from the prior-year period. The strong patient uptake of Xywav (the low-sodium version of Xyrem for the treatment of cataplexy and excessive daytime sleepiness) continued to drive growth for the firm. Jazz’s results are tracking our expectations, and we maintain our fair value estimate of $187 per share. We believe shares are trading at an attractive entry point in 4-star territory.