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Jazz Pharmaceuticals (JAZZ)
NASDAQ:JAZZ
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Jazz Pharmaceuticals
(NASDAQ:JAZZ)80Outperform
Positive Factors
Acquisition Strategy
The acquisition of Chimerix aligns with Jazz's strategy of acquiring assets targeting rare opportunities in niche markets.
Product Growth
Jazz Pharmaceuticals' oxybate franchise is expected to remain resilient with Xywav's growth in idiopathic hypersomnia offsetting the ongoing switch from Xyrem.
Negative Factors
Competition
Potential generic entry from Hikma in 2026 raises concerns about long-term revenue trajectory for the broader oxybate sleep franchise.
Jazz Pharmaceuticals (JAZZ) vs. S&P 500 (SPY)
Market Cap
$8.43B
Dividend YieldN/A
Average Volume (3M)896.61K
Price to Earnings (P/E)15.9
Beta (1Y)0.69
Revenue Growth6.12%
EPS Growth38.88%
CountryUS
Employees2,800
SectorHealthcare
Sector Strength74
IndustryBiotechnology
Share Statistics
EPS (TTM)8.75
Shares Outstanding60,732,480
10 Day Avg. Volume1,279,458
30 Day Avg. Volume896,614
Financial Highlights & Ratios
PEG Ratio0.41
Price to Book (P/B)N/A
Price to Sales (P/S)2.07
Price to Cash Flow (P/CF)5.30
P/FCF Ratio5.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$191.81Price Target Upside38.18% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering18
Jazz Pharmaceuticals Business Overview & Revenue Model
Company DescriptionJazz Pharmaceuticals plc is a global biopharmaceutical company focused on developing and commercializing innovative medicines for people with serious diseases, particularly in the areas of sleep medicine and oncology. The company's most notable products include Xyrem, used to treat narcolepsy, and Vyxeos, used for certain types of leukemia. Jazz Pharmaceuticals is headquartered in Dublin, Ireland, and operates in more than 30 countries worldwide, delivering therapies that address unmet medical needs and improve patient outcomes.
How the Company Makes MoneyJazz Pharmaceuticals generates revenue through the sale of its pharmaceutical products, primarily in the fields of sleep medicine and oncology. The company's revenue model is heavily reliant on its flagship products, such as Xyrem, a treatment for cataplexy and excessive daytime sleepiness in narcolepsy patients, and Vyxeos, a chemotherapy treatment for specific types of acute myeloid leukemia (AML). Additionally, Jazz invests in research and development to expand its product portfolio and pipeline, aiming to bring new and innovative treatments to market. The company also engages in strategic partnerships and collaborations to enhance its research capabilities and expand its market reach. Key revenue streams include product sales, licensing agreements, and collaborations with other pharmaceutical companies.
Jazz Pharmaceuticals Financial Statement Overview
Summary
Jazz Pharmaceuticals demonstrates strong financial performance, marked by solid revenue growth and impressive cash flow management. The company's balance sheet shows stability with low leverage, although there is room for improvement in net profitability and equity strengthening.Income Statement
Jazz Pharmaceuticals has shown strong revenue growth with a 6.12% increase from 2023 to 2024. The gross profit margin is excellent, at 100%, indicating effective cost management. The EBIT margin improved to 17.61%, reflecting better operational efficiency. However, the net profit margin is at 13.77%, indicating room for improvement in controlling non-operational expenses.85
Very Positive
Balance Sheet
The company has a low debt-to-equity ratio of 0.02, showcasing strong leverage management. The return on equity is 13.68%, which is healthy but could be improved. The equity ratio stands at 34.07%, indicating a balanced capital structure but with a relatively high level of liabilities.70
Positive
Cash Flow
Jazz Pharmaceuticals exhibits an impressive free cash flow growth rate of 30.69% from 2023 to 2024. The operating cash flow to net income ratio is 2.49, suggesting strong cash generation relative to net income. The free cash flow to net income ratio is 2.49, indicating robust cash flow management.90
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 4.07B | 3.83B | 3.66B | 3.09B | 2.36B | Gross Profit |
| 4.07B | 3.40B | 3.12B | 2.65B | 2.21B | EBIT |
| 716.63M | 578.58M | 512.27M | 170.28M | 765.46M | EBITDA |
| 716.63M | 1.23B | 553.78M | 1.03B | 649.65M | Net Income Common Stockholders |
| 560.12M | 414.83M | -214.14M | -328.95M | 238.62M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 2.99B | 1.63B | 881.48M | 591.45M | 2.13B | Total Assets |
| 12.01B | 11.39B | 10.84B | 12.30B | 6.54B | Total Debt |
| 69.94M | 5.79B | 5.80B | 6.14B | 2.23B | Net Debt |
| -2.34B | 4.29B | 4.91B | 5.55B | 1.18B | Total Liabilities |
| 7.92B | 7.66B | 7.75B | 8.33B | 2.88B | Stockholders Equity |
| 4.09B | 3.74B | 3.09B | 3.97B | 3.66B |
| Cash Flow | Free Cash Flow | |||
| 1.35B | 1.07B | 773.78M | 732.98M | 520.39M | Operating Cash Flow |
| 1.40B | 1.09B | 1.27B | 778.51M | 899.65M | Investing Cash Flow |
| -508.19M | -163.06M | -446.23M | -5.21B | -1.01B | Financing Cash Flow |
| 20.52M | -305.25M | -529.49M | 3.97B | 528.07M |
Jazz Pharmaceuticals Technical Analysis
Positive
138.81
Price Trends
128.13
Positive
123.37
Positive
116.21
Positive
Market Momentum
3.71
Positive
58.98
Neutral
31.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JAZZ, the sentiment is Positive. The current price of 138.81 is above the 20-day moving average (MA) of 136.25, above the 50-day MA of 128.13, and above the 200-day MA of 116.21, indicating a bullish trend. The MACD of 3.71 indicates Positive momentum. The RSI at 58.98 is Neutral, neither overbought nor oversold. The STOCH value of 31.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JAZZ.
Jazz Pharmaceuticals Risk Analysis
Jazz Pharmaceuticals disclosed 42 risk factors in its most recent earnings report. Jazz Pharmaceuticals reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Jazz Pharmaceuticals Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $8.43B | 15.87 | 14.31% | ― | 6.12% | 38.88% | |
79 Outperform | $2.93B | 12.91 | 38.89% | ― | 31.85% | ― | |
68 Neutral | $11.27B | 34.35 | 14.16% | ― | 24.81% | 33.67% | |
64 Neutral | $1.79B | 24.33 | 7.55% | ― | 8.94% | 5171.26% | |
58 Neutral | $364.07M | ― | 40.36% | ― | 13.57% | 89.73% | |
49 Neutral | $7.05B | 0.34 | -55.09% | 2.46% | 25.27% | -3.43% | |
44 Neutral | $461.11M | ― | -63.37% | ― | -52.30% | 27.13% |
* Healthcare Sector Average
Performance Comparison
JAZZ
Jazz Pharmaceuticals
138.81
22.18
19.02%
ACAD
ACADIA Pharmaceuticals
17.56
-6.57
-27.23%
NBIX
Neurocrine
113.04
-25.57
-18.45%
SUPN
Supernus Pharmaceuticals
32.07
-0.36
-1.11%
HRTX
Heron Therapeutics
2.39
-0.02
-0.83%
SAGE
SAGE Therapeutics
7.50
-13.68
-64.59%
Jazz Pharmaceuticals Earnings Call Summary
Earnings Call Date: Feb 25, 2025 | % Change Since: -0.62% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements, including record revenues, successful product launches, and strong sales growth for key products like Epidiolex. However, challenges such as the impact of pediatric protocol changes on Rylaze and potential revenue erosion from upcoming generic competition were noted. The company demonstrated financial strength by reducing debt and maintaining strategic flexibility.Highlights
Record Annual and Quarterly Revenue
Jazz Pharmaceuticals reported over $4 billion in total annual revenue for 2024 and nearly $1.1 billion in fourth quarter revenue, marking the highest ever quarterly revenue.
Strong Growth in Epidiolex Sales
Epidiolex net product revenues grew 15% in 2024 compared to 2023, showing strong underlying demand and positioning the product to reach blockbuster status in 2025.
Successful Launch of Ziihera
Ziihera received accelerated approval in the U.S. for HER2-positive biliary tract cancer and generated positive initial feedback from healthcare providers.
Zepzelca Phase III Clinical Success
Positive results from the Phase III trial for Zepzelca in first-line maintenance for small cell lung cancer, indicating potential for expanded use.
Financial Flexibility and Debt Reduction
Significant cash generation allowed for a $750 million voluntary repayment on Term Loan B, reducing leverage substantially.
Lowlights
Impact from Pediatric Protocol Changes
Changes to pediatric protocols temporarily impacted Rylaze's revenue in the second half of 2024.
Potential Revenue Erosion from Generics
Concerns about rapid erosion of Xyrem revenue as authorized and full generics could enter the market, impacting high sodium oxybate AG royalty revenue.
Timing of Clinical Data Readouts
The data readout for the HERIZON-GEA-01 Phase III trial evaluating zanidatamab was delayed to the second half of 2025.
Company Guidance
In the recent earnings call, Jazz Pharmaceuticals provided comprehensive guidance for 2025, highlighting several key metrics. The company reported total revenues of approximately $4.1 billion for 2024, marking a 6% increase over 2023, and expects 2025 revenues to range between $4.15 billion and $4.4 billion. They achieved a non-GAAP adjusted net income of about $1.37 billion in 2024, with an adjusted EPS of $20.90. Jazz anticipates continued growth in 2025, driven by strong performance in their sleep, epilepsy, and oncology portfolios, with Xywav and Epidiolex poised to drive significant revenue. The company also highlighted a reduction in non-GAAP adjusted R&D expenses by 8% from 2024, focusing on priority programs like zanidatamab. Additionally, they expect adjusted net income for 2025 to range from $1.4 billion to $1.5 billion, reflecting their strategic investments and disciplined expense management.Jazz Pharmaceuticals Corporate Events
M&A Transactions
Jazz Pharmaceuticals to Acquire Chimerix in $935M Deal
Positive
Mar 5, 2025
On March 4, 2025, Jazz Pharmaceuticals announced a merger agreement to acquire Chimerix for $8.55 per share, totaling approximately $935 million. This acquisition will enhance Jazz’s oncology portfolio by adding dordaviprone, a treatment for H3 K27M-mutant diffuse glioma, a rare brain tumor. The transaction, approved by both companies, is expected to close in the second quarter of 2025. Dordaviprone, which has shown promising clinical trial results, is under FDA review for accelerated approval. The acquisition is anticipated to strengthen Jazz’s presence in the rare oncology space and provide a significant commercial opportunity, potentially making dordaviprone a standard of care for this rare disease.
Executive/Board Changes
Jazz Pharmaceuticals Announces CEO Bruce Cozadd’s Retirement Plan
Neutral
Dec 16, 2024
Jazz Pharmaceuticals has announced that Bruce Cozadd, its Co-Founder, Chairperson, and CEO, will retire from his CEO position by the end of 2025, once a successor is appointed. The company is initiating a formal search to identify a new CEO, considering both internal and external candidates, and Cozadd will continue as Chairperson after stepping down to provide strategic guidance.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.