RMD - Jazz Pharmaceuticals: Pandemic Leaves The Leading Drug In A Catch 22
Investment Thesis
As pandemic fears dry up the new patient enrollments, Jazz Pharmaceuticals plc (JAZZ) has revised down the 2020 sales guidance, reflecting the impact of rising unemployment on payor reimbursements. The company's excessive reliance on Xyrem is at risk as rival companies race for a more effective treatment, and a sharp decline in Xyrem sales could trigger an early launch of generics. The company's replacements are undergoing product launches and awaiting FDA clearance. However, the social distancing measures have rendered the new product roll-outs ineffective, and with two new launches lined up