AVDL - Jazz initiated Buy at UBS on underappreciated potential of cannabidiol drug

UBS has launched its coverage on Jazz Pharmaceuticals (NASDAQ:JAZZ) with a Buy rating and a $194 per share target, arguing that investors have underestimated the growth prospects of Ireland-based pharma’s cannabidiol drug, Epidiolex. Jazz (JAZZ) recorded ~6% growth of Epidiolex net product sales in 1Q 2022 on a pro-forma basis after the company took ownership of the seizure medication with its acquisition of GW Pharmaceuticals in 2021. In addition, the analysts led by Ashwani Verma argue that fears over a patent cliff for sleep medication Xyrem were overrated. Certain Xyrem patents have been challenged by companies seeking to introduce generic versions of the therapy. Last month, Avadel Pharmaceuticals (AVDL) expected potential FDA approval of a rival drug on or before the expiration of a REMS patent in June 2023. Citing multiple assumptions, UBS analysts project the patent cliff to cause a 2 – 3% earnings per share impact from 2023 to

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Jazz initiated Buy at UBS on underappreciated potential of cannabidiol drug