UPDATE: Credit Suisse Initiates Jazz Pharmaceuticals with Outperform, $65 PT; Organic and Acquisition Growth Outlook

Credit Suisse initiates its coverage on Jazz Pharmaceuticals

with an Outperform rating and a price target of $65. Credit Suisse comments, "We rate JAZZ Outperform because it offers (1) organic growth of the Xyrem franchise, driven by volume growth, pricing power and what we see as a defensible franchise against generics until at least 2020, based on our work with patent counsel; (2) diversification, accretion and cash flows provided by Erwinaze, the key product obtained in the recently announced EUSA acquisition; and (3) a platform for acquisitions created by JAZZ's low tax rate, focused acquisition strategy and execution capabilities." JAZZ closed at $43.66 on Tuesday.