Jazz Pharmaceuticals: Xywav, Rylaze, and Epidiolex Drive Growth; Shares Undervalued

Strong uptake of Xywav for cataplexy and excessive daytime sleepiness; the blood cancer drug Rylaze; and the seizure drug Epidiolex are driving sales for Jazz Pharmaceuticals, as these three drugs posted a combined 27% year-over-year increase in revenue in 2023. 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 and about 37% below our fair value estimate. We forecast Xywav, Rylaze, and Epidiolex will continue to deliver double-digit percentage growth in 2024, and we anticipate Jazz will reach over $4.1 billion in total revenue.