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BMO Sees Jazz Pharma As 'A Rare Breed In Specialty Pharma'

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BMO initiated coverage of Jazz Pharmaceuticals plc - Ordinary Shares (NASDAQ: JAZZ) on Tuesday, with an Outperform rating and $190 price target, calling the company “a rare breed in specialty pharma.” Their investment theses is based on four key points:

  • 1) Even though specialty pharma has been a laggard recently, the experts believe Jazz has a “unique business model,” as the company targets several rare diseases like narcolepsy or VOD – and this “should result in greater sustainability with higher barriers to entry, as well as greater profitability” and industry leading margins.
  • 2) It seems like the largest overhang on the shares, the potential for a generic version of Xyrem, could vanish soon, as analysts expect the litigation to resolve in favor of Jazz.
  • 3) The pipeline is starting to prove fruitful and, as such, could become an important near-to-medium term catalyst. Among the events expected soon are the U.S. release of Defitelio for VOD, Phase 3 data for JZP-110 in excessive daytime sleepiness by EOY, an LCE update for Xyrem, and a filing of Vyxeos for AML from the pending Celator Pharmaceuticals Inc (NASDAQ: CPXX) agreement.
  • 4) The analysts think Jazz has done well managing it M&A strategy, while maintaining its balance sheet solid, even after the Celator Pharma deal. This provides management with plenty of flexibility to continue to expand its rare disease portfolio.

Latest Ratings for JAZZ

DateFirmActionFromTo
May 2021HC Wainwright & Co.MaintainsBuy
Apr 2021StifelMaintainsBuy
Apr 2021Morgan StanleyMaintainsEqual-Weight

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View the Latest Analyst Ratings

 

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