AVDL - Jazz Pharmaceuticals: Cheap But Complicated

2024-04-18 13:26:38 ET

Summary

• Jazz Pharmaceuticals plc has a neuroscience franchise that is led by Xywav, which has replaced Xyrem as the top treatment for narcolepsy.
• The company's narcolepsy franchise is facing competition from Avadel Pharmaceuticals' Lumryz, but Jazz is defending its position.
• Jazz's oncology franchise, including therapies like Rylaze and Zepzelca, is expected to now contribute around $1.5 billion in revenue.
• The story around Jazz Pharmaceuticals is somewhat complicated, but the shares are now trading at less than six times forward earnings.
• An analysis around Jazz Pharmaceuticals follows in the paragraphs below.

Today, we are going to take a more in-depth look at Jazz Pharmaceuticals plc ( JAZZ ) . The company has vigorously defended its narcolepsy turf against Avadel’s ( AVDL ) once-nightly Lumryz, but growth prospects for this indication are stunted at best. With a rolling BLA for potential blockbuster bispecific antibody for zanidatamab’s first indication but no compelling growth prospects through 2025, the recent insider buying merits another look, as did the stock's cheap valuations. An analysis follows below....

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