AVDL - Jazz Pharmaceuticals: Uncertain Sales Outlook Is Not Music To Investors' Ears
Investment Thesis
Notwithstanding the impressive sales growth and superior margins over the years, Jazz Pharmaceuticals plc (JAZZ) has risen only ~22% this year, compared to ~25% gain in the NASDAQ Biotechnology index. The market-leading position of its major revenue contributor, Xyrem® is under threat as generics and low-cost options enter the lucrative market for narcolepsy therapy. Despite the over-the-top earnings guidance, another critical revenue component, Erwinaze®, is facing a supply shortage.
Therefore, the overall revenue growth is already slowing, while Jazz widens its narcolepsy portfolio to soften the impact of