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Jazz Pharmaceuticals PLC JAZZ

Morningstar Rating
$120.42 −0.09 (0.07%)
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Company Report

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.

Price vs Fair Value

JAZZ is trading at a 35% discount.
Price
$120.79
Fair Value
$829.00
Uncertainty
High
1-Star Price
$168.35
5-Star Price
$159.30
Economic Moat
Zjj
Capital Allocation
Rbqwkhz

Bulls Say, Bears Say

Bulls

The GW acquisition allows Jazz to reach patient populations with rare and severe forms of epilepsy with approved indications for Epidiolex as young as 1 year of age.

Bears

Jazz has been reliant on Xyrem, which contributed 15% of 2023 sales. Generics entered the market in January 2023 and are eroding Jazz's patient share.

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News

Trading Information

Previous Close Price
$120.51
Day Range
$120.03121.53
52-Week Range
$111.25147.98
Bid/Ask
$116.96 / $123.72
Market Cap
$7.51 Bil
Volume/Avg
409,964 / 634,207

Key Statistics

Price/Earnings (Normalized)
6.57
Price/Sales
2.26
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield
3.59%

Company Profile

Jazz Pharmaceuticals is an Ireland-domiciled biopharmaceutical firm focused primarily on treatments for sleeping disorders and oncology. Jazz has nine approved drugs across neuroscience and oncology indications; its portfolio includes Xyrem and Xywav for narcolepsy, Zepzelca for the treatment of metastatic small cell lung cancer, Rylaze for acute lymphoblastic leukemia, and Vyxeos for acute myeloid leukemia. In May 2021, Jazz acquired GW Pharmaceuticals and gained its leading product, Epidiolex for the treatment of severe, rare forms of epilepsy.
Sector
Healthcare
Industry
Biotechnology
Stock Style Box
Small Value
Total Number of Employees
2,800

Competitors

Valuation

Metric
JAZZ
UCB
GMAB
Price/Earnings (Normalized)
6.5727.6426.13
Price/Book Value
2.012.424.31
Price/Sales
2.264.258.34
Price/Cash Flow
6.6924.3822.83
Price/Earnings
JAZZ
UCB
GMAB

Financial Strength

Metric
JAZZ
UCB
GMAB
Quick Ratio
1.520.8413.32
Current Ratio
2.241.3213.34
Interest Coverage
2.033.88175.00
Quick Ratio
JAZZ
UCB
GMAB

Profitability

Metric
JAZZ
UCB
GMAB
Return on Assets (Normalized)
11.62%5.10%16.09%
Return on Equity (Normalized)
37.73%8.82%17.97%
Return on Invested Capital (Normalized)
16.77%7.41%15.16%
Return on Assets
JAZZ
UCB
GMAB
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