Auriga Labels Jazz Pharmaceuticals (JAZZ) as Successful Orphan Drug Story; Starts Coverage at 'Buy'
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Price: $61.53 --0%
Rating Summary:
16 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 8
Rating Summary:
16 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 8
Trade JAZZ Now!
Auriga initiates coverage on Jazz Pharmaceuticals (NASDAQ: JAZZ) with a Buy. PT $55.00.
Auriga analyst says, "JAZZ is a specialty pharmaceutical company with unusual strong earnings growth. The revenue of Xyrem grows 257% in two years, from $90 million in 2009 to estimated $231 million this year, while profit is estimated to grow over 800%. It has two marketed products, Xyrem and Luvox CR. Xyrem is likely to account for over 85% of the company revenue by the end of 2011. As an orphan drug, Xyrem enjoys significant pricing power. The growth is primarily driven by price increases, and secondarily by increase in volume. Patent protection around Xyrem's REMS program is strong and as such we expect the earliest time for generic competition is not until 2024 when the last REMS related patent expires."
"The company announced last week to merge with an Ireland-based company, Azur Pharma, which we view as a positive event. The combination is likely to diversify JAZZ's portfolio and more importantly it positions JAZZ with a favorable tax structure. On the downside, the company has no R&D pipeline and therefore lacks any near term catalysts. Institutional ownership has increased from 45% in June, 2010 to 92% now."
For more ratings news on Jazz Pharmaceuticals click here and for the rating history of Jazz Pharmaceuticals click here.
Shares of Jazz Pharmaceuticals closed at $43.53 yesterday, with a 52 week range of $9.61-$47.88.
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Auriga analyst says, "JAZZ is a specialty pharmaceutical company with unusual strong earnings growth. The revenue of Xyrem grows 257% in two years, from $90 million in 2009 to estimated $231 million this year, while profit is estimated to grow over 800%. It has two marketed products, Xyrem and Luvox CR. Xyrem is likely to account for over 85% of the company revenue by the end of 2011. As an orphan drug, Xyrem enjoys significant pricing power. The growth is primarily driven by price increases, and secondarily by increase in volume. Patent protection around Xyrem's REMS program is strong and as such we expect the earliest time for generic competition is not until 2024 when the last REMS related patent expires."
"The company announced last week to merge with an Ireland-based company, Azur Pharma, which we view as a positive event. The combination is likely to diversify JAZZ's portfolio and more importantly it positions JAZZ with a favorable tax structure. On the downside, the company has no R&D pipeline and therefore lacks any near term catalysts. Institutional ownership has increased from 45% in June, 2010 to 92% now."
For more ratings news on Jazz Pharmaceuticals click here and for the rating history of Jazz Pharmaceuticals click here.
Shares of Jazz Pharmaceuticals closed at $43.53 yesterday, with a 52 week range of $9.61-$47.88.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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