Needham & Company Reiterates Jazz Pharmaceuticals (JAZZ) at Buy Following Sunosi Deal, Sees it as a Positive

Needham & Company analyst Ami Fadia reiterated a Buy rating and $215.00 price target on Jazz Pharmaceuticals (NASDAQ: JAZZ), following announcement the company is divesting Sunosi to Axsome.

The analyst quotes: "We like the deal announced by Jazz this morning wherein it will divest Sunosi to Axsome for $53M upfront and sales-based royalties. The divestiture will allow Jazz to focus its commercial efforts on key strategic growth assets (Xyrem, Xywav, Epidiolex, Zepzelca, Rylaze) that are critical to the company's performance this year. In our view, the deal terms are reasonable considering the past challenges with the product's ramp, and we believe Axsome's digital-centric commercial platform could be well-suited to maximize Sunosi's potential. Jazz will receive an upfront payment in-line with Sunosi's annual sales, along with a royalty structure that allows Jazz to share in the product's future growth. Overall, we believe this deal will be viewed positively by the Street."

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 $160.70 yesterday.

By Vlad Schepkov

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