Jazz Pharma On Track To Report Top-Line Late-Stage Results Of JZP-110 By December

Jazz Pharmaceuticals plc - Ordinary Shares

is well positioned to deliver a long-term EPS CAGR in at least the mid-to-high teens, according to a note from PiperJaffray. Analyst David Amsellem noted that earnings growth will come from Xyrem, along with growing contribution from Defitelio and eventually JZP-110. The analyst said JAZZ remains on track to report top-line Phase III results of JZP-110 for the treatment of excessive daytime sleepiness (EDS) associated with narcolepsy and obstructive sleep apnea (OSA) before year-end. Amsellam, who reiterated his Overweight rating and $186 price target on the stock, said he gained further insight into the studies evaluating JZP-110 as the company had broadened the inclusion criteria for the Phase III studies to allow patients with a body mass index (BMI) of up to 45 to enroll (versus 40). The analyst also noted encouraging human abuse liability (HAL) data for JZP-110 that showed the drug at all three doses tested was associated with "lower rates of peak liking, the primary endpoint, versus a 90 mg dose of phentermine (p<0.05), a stimulant which notably is classified as a schedule IV controlled substance." "Even if JZP-110 were to receive a schedule III designation (recall that EDS market leader modafinil is a schedule IV product), the impact in our view would be a net neutral given that refills (albeit a more limited number) are still permitted," Amsellam added. At the time of writing, shares of Jazz Pharma were up 0.55 percent to $149.78.