Skip to Content

Jazz Pharmaceuticals PLC JAZZ

Morningstar Rating
$112.70 +1.68 (1.51%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

No-Moat Jazz Benefits From Strong Uptake of Xywav, Rylaze, and Epidiolex

Jazz Pharmaceuticals added its leading drug, Xyrem, to its portfolio in 2005 with the acquisition of Orphan Medical for about $123 million. This was a great price for the then newly approved drug, which became a blockbuster. At that point, Xyrem was the only approved treatment for cataplexy (sudden muscle weakness or paralysis) in narcolepsy; it has since garnered additional approvals for excessive daytime sleepiness in patients with narcolepsy. Its strong efficacy has propelled its success in the difficult-to-treat sleep indication, but generic entry is on the horizon, leaving a cloud of uncertainty for the company. Jazz reached a settlement in 2017 with Hikma Pharmaceuticals to not allow generics on the market until January 2023. While Jazz will retain some economic profit from royalties on generic sales and a shared distribution program, we are seeing the negative impact of generic entry on Xyrem's sales.

Price vs Fair Value

JAZZ is trading at a 99% premium.
Price
$111.02
Fair Value
$547.00
Uncertainty
High
1-Star Price
$354.78
5-Star Price
$168.10
Economic Moat
Xyn
Capital Allocation
Mbqysxszz

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.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if JAZZ is a good fit for your portfolio.

News

Trading Information

Previous Close Price
$111.02
Day Range
$110.08113.27
52-Week Range
$103.01146.70
Bid/Ask
$110.00 / $112.77
Market Cap
$7.10 Bil
Volume/Avg
636,988 / 746,811

Key Statistics

Price/Earnings (Normalized)
6.48
Price/Sales
1.99
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield
3.93%

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
EXEL
UCB
Price/Earnings (Normalized)
6.4822.2528.26
Price/Book Value
1.883.072.78
Price/Sales
1.993.794.88
Price/Cash Flow
6.3520.4428.00
Price/Earnings
JAZZ
EXEL
UCB

Financial Strength

Metric
JAZZ
EXEL
UCB
Quick Ratio
1.623.230.84
Current Ratio
2.273.461.32
Interest Coverage
1.863.88
Quick Ratio
JAZZ
EXEL
UCB

Profitability

Metric
JAZZ
EXEL
UCB
Return on Assets (Normalized)
11.13%9.61%5.10%
Return on Equity (Normalized)
35.21%12.20%8.82%
Return on Invested Capital (Normalized)
16.02%8.59%7.41%
Return on Assets
JAZZ
EXEL
UCB
See how this stock stacks up to its competitors with Morningstar Investor

Biotechnology Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Vertex Pharmaceuticals Inc
VRTX
VyynsbfmHfxxt$124.3 Bil
Regeneron Pharmaceuticals Inc
REGN
KlrczjtSwnbyz$111.3 Bil
Moderna Inc
MRNA
KfxtwhdRvrw$56.9 Bil
BioNTech SE ADR
BNTX
RfzfhyzlWfrft$24.2 Bil
argenx SE ADR
ARGX
JxphhyvpXnzn$22.5 Bil
Alnylam Pharmaceuticals Inc
ALNY
MyrvqhcvMclmj$20.1 Bil
Biomarin Pharmaceutical Inc
BMRN
RlnyxnjrWhlwnlk$16.1 Bil
Incyte Corp
INCY
XxbkrspjMjlcf$13.4 Bil
Royalty Pharma PLC Class A
RPRX
CkxmyylfjRktbpx$12.4 Bil
United Therapeutics Corp
UTHR
VgttbsfqDkyq$12.2 Bil

Sponsor Center