Why Everyone Is Watching Jazz Pharmaceuticals (JAZZ) Right Now

Jazz Pharmaceuticals (JAZZ) is back in focus after US regulators cleared its cancer drug Ziihera and the group disclosed the planned retirement of long-serving Chief Commercial Officer Samantha Pearce.

At a share price of US$210.23, Jazz Pharmaceuticals has slipped around 13% on a 3 month share price basis and about 13% over the past month, even though the year to date share price return is 21.41% and the 1 year total shareholder return is 54.51%, suggesting recent weakness comes after a strong longer term run as investors weigh the growth potential of Ziihera against execution risks from the leadership transition.

Scan how Jazz Pharmaceuticals compares with other oncology focused biotechs by reviewing our curated list of 20 high quality undiscovered gems.

After a 13% pullback over three months, even as Jazz Pharmaceuticals posts solid revenue and net income growth, does the current price still offer an appealing trade off between Ziihera upside and leadership risk as valuation comes into focus?

Most Popular Narrative: 29% Undervalued

On the most followed view of Jazz Pharmaceuticals, a fair value of about $294 per share sits well above the last close of $210.23. As a result, the recent pullback is being weighed against a pipeline and cash flow story that this framework values more highly.

Expected expansion of Ziihera across additional HER2 driven tumors, including biliary tract, colorectal, lung and early or metastatic breast cancer, following the raised US$3b to US$5b peak sales outlook, could add new oncology revenue streams and support higher long term earnings power.

See why 35 investors see Jazz Pharmaceuticals as 29% undervalued.

Result: Fair Value of $294.27 (UNDERVALUED)

Still, the Jazz Pharmaceuticals story could change quickly if Ziihera data in new tumors underwhelms or if generic and pricing pressure accelerate in the sleep franchise.

Find out about the key risks to this Jazz Pharmaceuticals narrative.

Next Steps

Mixed feelings on Jazz Pharmaceuticals after Ziihera and the leadership shuffle are understandable, so move fast, review the underlying numbers and weigh both the 5 key rewards and 2 important warning signs.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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