Leerink Partners Cuts PT to $166 on Jazz Pharmaceuticals (JAZZ) - Reiterates Outperform

Leerink Partners maintained an Outperform rating on Jazz Pharmaceuticals (NASDAQ: JAZZ), and cut the price target to $166.00 (from $187.00), reflecting a diminishing Xyrem (narcolepsy) pricing power as the drug nears the $1B threshold.

Analyst Jason Gerberry commented, "We are lowering our JAZZ ests. and PT reflecting diminishing Xyrem (narcolepsy) pricing power as the drug nears the $1B threshold the ability to pass along price above traditional pharma peers is limited at this stage of the product's life cycle. Our updated 2020E Xyrem revenue est. of $1.58B is now more closely aligned to the FactSet consensus mean of $1.56B. The revenue reduction represents a 2-7% trimming of our overall JAZZ sales forecast and given Xyrem’s high margin, we’re reducing our PT by 11%. Overall, we are still positively inclined on the Xyrem fundamentals, but feel a 4- yr revenue CAGR of 10% (from 12%) is more appropriate given pricing and volume trends for the product. We remain OP on JAZZ and have a positive bias regarding Xyrem patent settlement, defibrotide US approval and positive Ph. 3 data for JZP-110 (narcolepsy) as 2016 events."

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 $129.09 yesterday.

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