Jazz Pharmaceuticals (JAZZ) Reports Topline Miss Related to Delays in Xyrem Refills; Leerink Partners Cuts Price Target to $187

Leerink Partners maintained an Outperform rating on Jazz Pharmaceuticals (NASDAQ: JAZZ), and cut the price target to $187.00 (from $220.00), following the company's 3Q earnings report. JAZZ’s update included a modest topline miss driven by slower patient volume growth as the company experienced delays in Xyrem refills.

Analyst Jason Gerberry commented, "JAZZ’s 3Q update included a modest topline miss and inline bottom line. The topline miss was driven by slower patient volume growth as JAZZ experienced delays in Xyrem refills due to under-capacity at its call center (processing hub) during a period of high call volume driven by the transition of Xyrem to an approved REMS. We view the call center issues as temporary. However, we are reducing our revenue forecasts by 1-2% to reflect a more conservative outlook on Xyrem pricing. JAZZ remains catalyst rich in 2016 with: (1) a possible patent trial in the lead Xyrem district court case vs. Hikma by 1Q’16, with a trial date a possible catalyst for a settlement with the first-filer; (2) defibrotide PDUFA 03/31/16; approval, label and pricing could be catalysts; (3) JZP-110 Ph. 3 data in sleep disorders in 2H’16. We remain OP with PT of $187 (from $220) mainly reflecting more conservative Xyrem pricing."

For an analyst ratings summary and ratings history on Jazz Pharmaceuticals click here. For more ratings news on Jazz Pharmaceuticals click here.

Shares of Jazz Pharmaceuticals closed at $139.99 yesterday.

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