June 28, 2021 1:00 AM
 — 
3
 min

Jazz is Closing The Deal

buy

Jazz Pharmaceuticals is on the cusp of a business transformation. In May, the company announced it was acquiring GW Pharmaceuticals (GWPH). GW is a global leader in the discovery, development, manufacture and commercialization of new therapies based on its proprietary cannabinoid product platform to treat a wide range of diseases. The company's flagship drug, Epidiolex, is a potential blockbuster. Once the deal is closed, the combined company will become a leader in neuroscience with a global presence well placed to maximize the value of its product portfolio.

TIKR
FTCH

PRICE
$175

TARGET PRICE
$200

UPSIDE
%14

S&P 500
4,242 (+0.16%)

WTI СRUDE
73,08 (+0.03%)

10Y UST
1,450 (-0.81%)

BITCOIN
$34,002 (+2.81%)

While cannabis-based drugs may face challenges in distribution in the US, Jazz has extensive expertise and management experience in such assets. For example, the company used sodium oxybate to treat narcolepsy. Narcolepsy causes disturbed sleep cycles and excessive sleepiness during the day. About 70% of patients also suffer from cataplexic attacks, when muscle tone suddenly disappears. Jazz Pharmaceuticals's flagship drug for the treatment of narcolepsy is Xyrem, which accounts for over 70% of total sales.


The main risk for Jazz Pharmaceuticals financial performance is increased competition in the drug market for narcolepsy, therefore the company is actively investing in R&D and development of alternative drugs to obtain patents for them. Sunosi, recently approved by the FDA for narcolepsy and obstructive sleep apnea, should offset the risks of Xyrem's slowdown in sales growth. We believe that Sunosi has every chance of becoming a more mainstream drug than Xyrem, so its implementation will stimulate revenue growth in the medium term, despite the sluggish start of sales of the drug for the treatment of blood cancer - Vyxeos. We estimate that key new products Xywav, Zepzelca and Epidiolex could generate more than $ 3 billion in combined revenue by 2025, while sales of other cancer products could reach annual sales in the $ 200-300 million range.


Jazz Pharmaceuticals is a specialized biopharmaceutical company headquartered in Ireland, founded in 2003. The company has extensive experience working with drugs in the fields of hematology, oncology and psychiatry, but the main focus is research on narcolepsy - this neurological disease may require lifelong therapy.

Request Access

By clicking the button you agree to the Privacy Policy
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Recent Posts
SEE ALL