UPDATE: Piper Jaffray Defends Jazz Pharmaceuticals, Reiterates Overweight and $51 PT

Piper Jaffray has published a research report on Jazz Pharmaceuticals

after the company received a warning letter from the FDA this morning. In the report, Piper Jaffray writes, "This morning, Jazz received a warning letter from the FDA related to deficiencies in developing adequate procedures for monitoring and reporting adverse events (

) related to Xyrem. The letter comes on the heels of the May 2011 Form 483 letter outlining the deficiencies, and since then, JAZZ has been working to remediate the issues. We note that the letter is not related to manufacturing, does not have any impact on Jazz's ability to ship product, and does not hinder Jazz's ability to promote the product. As such, we do not believe the letter will have any impact on the trajectory of Xyrem." Piper Jaffray maintains its Overweight rating and $51 price target on Jazz Pharmaceuticals, which is currently trading down $2.69 from its $43.02 closing price yesterday.