ZYME - Jazz Pharmaceuticals: Pipeline Setback While Business Transition Continues

2024-06-21 09:15:24 ET

Summary

• Jazz Pharmaceuticals plc's suvecaltamide failed in a phase 2b trial for essential tremor, but this is a minor setback for the company and one that should have been expected.
• The oxybate franchise is performing well despite generic Xyrem and Lumryz competition, and Jazz is seeing healthy patient and net sales growth of Xywav.
• Jazz expects to deliver 4% to 9% revenue growth in 2024.
• Key pipeline updates are coming in late 2024 and early 2025.
• Jazz is still in the penalty box for many investors, but I continue to see a path to a share price recovery and long-term gains.

Shares of Jazz Pharmaceuticals plc ( JAZZ ) fell yesterday after the company announced that suvecaltamide failed to meet the primary endpoint in the phase 2b trial in patients with essential tremor. The company is blaming a higher placebo response, but I was not surprised by this failure. As I wrote in my January 2024 article , my expectations were low based on the available data from the previous trial....

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