BofA on Jazz (JAZZ): 'We continue to see $1bn+ peak sales potential for zani in 1L GE'

BofA Securities analyst Jason Gerberry reiterated a Buy rating and $247.00 price target on Jazz Pharmaceuticals (NASDAQ: JAZZ).

The analyst comments "This afternoon, JAZZ issued a press release detailing the Ph3 data for zani (HER2- bispecific) for 1L gastric cancer (GEA). The update came earlier-than-expected for release of late-breaking abstracts (per ASGO GI website). Overall, we thought the data validate a meaningful peak share opportunity for zani in GEA, thus we were surprised to see the stock underperform today (-4% vs +2% DRG). What we like about the emerging zani profile: 1) PFS benefit with either zani doublet or triplet is cross-trial better than competitor Merck's KN811 regimen; 2) the zani triplet offers meaningful OS benefit, irrespective of PD-L1 status whereas KN811 only showed OS benefit in PD-L1 positive patients. In aggregate, we believe the data position zani to be used as a new HER2 targeted backbone agent in 1L GEA. The zani safety profile was largely in-line with our expectations. We continue to see $1bn+ peak sales potential for zani in 1L GEA (30% share), thus we see room for upside potential/re-rating on a solid launch. Maintain Buy."

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 $166.99 yesterday.

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