JAZZ - Why Investing In Jazz Pharmaceuticals Is A Game Of Musical Chairs
Company Thesis
Jazz Pharmaceuticals' (JAZZ) blockbuster drug Xyrem will be fighting a two-front war as both branded and generic competitors have seen their products enter the U.S. narcolepsy market without infringing on the company's patents. Over 75% of JAZZ's revenues are derived from Xyrem, which are likely to go to zero as generic competition gains momentum by FY2023. Between FY2020-2023, branded competition from both outsiders and the company's own sleep disorder pipeline will likely erode Xyrem's revenues by 33-50%. The company's hematology/oncology pipelines have seen mixed successes, and are not enough to offset