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Jazz Pharmaceuticals (JAZZ)
NASDAQ:JAZZ

Jazz Pharmaceuticals (JAZZ) AI Stock Analysis

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Jazz Pharmaceuticals

(NASDAQ:JAZZ)

Rating:73Outperform
Price Target:
$121.00
▲(14.02%Upside)
Jazz Pharmaceuticals' strong financial performance and positive earnings call outlook are key strengths, supported by robust cash flow and strategic acquisitions. However, moderate leverage and oncology segment challenges present potential risks. Technical indicators suggest a neutral market sentiment, and the valuation is fair with a P/E ratio of 14.632.
Positive Factors
Guideline Inclusion
US sales can grow to over $800 million with inclusion in NCCN guidelines and FDA approval.
Market Potential
The label expansion into 1L maintenance should provide meaningful growth driven by expansion into a larger patient pool in the earlier line along with a longer duration of therapy.
Regulatory Approval
Zepzelca in combination with Tecentriq was granted priority review for 1L maintenance therapy in extensive-stage small cell lung cancer, following positive survival benefit demonstrated in the Phase 3 IMforte data.
Negative Factors
Competition
Near term competition from Imdeltra in 2L may lead to slightly lower 2025 sales.
Financial Performance
Multiple changes across the income statement from the Chimerix deal and a one-time litigation settlement charge resulted in a messy print.

Jazz Pharmaceuticals (JAZZ) vs. SPDR S&P 500 ETF (SPY)

Jazz Pharmaceuticals Business Overview & Revenue Model

Company DescriptionJazz Pharmaceuticals (JAZZ) is an international biopharmaceutical company focused on identifying, developing, and commercializing innovative pharmaceutical products to meet unmet medical needs. The company specializes in neuroscience and oncology, offering a range of products that address complex and rare conditions. Its core products include narcolepsy treatments such as Xyrem (sodium oxybate) and Xywav (calcium, magnesium, potassium, and sodium oxybates), as well as oncology therapies like Zepzelca (lurbinectedin) and Rylaze (asparaginase erwinia chrysanthemi). Jazz Pharmaceuticals is headquartered in Dublin, Ireland, and operates globally, with a commitment to improving patients' quality of life with its therapies.
How the Company Makes MoneyJazz Pharmaceuticals generates revenue primarily through the sale of its pharmaceutical products. The company's key revenue streams include its neuroscience portfolio, led by Xyrem and Xywav, which are primarily used to treat narcolepsy, a chronic sleep disorder. These products contribute significantly to Jazz's earnings, given their market leadership in this therapeutic area. Additionally, Jazz's oncology portfolio, including Zepzelca and Rylaze, provides substantial revenue growth opportunities. The company also engages in strategic partnerships and collaborations with other pharmaceutical and biotechnology firms to bolster its research and development efforts, leading to potential milestone and royalty payments. Furthermore, Jazz invests in expanding its product pipeline through acquisitions and licensing agreements, ensuring a steady flow of innovative therapies that can drive future revenue growth.

Jazz Pharmaceuticals Key Performance Indicators (KPIs)

Any
Any
Neroscience Revenue Breakdown
Neroscience Revenue Breakdown
Highlights revenue generated from neuroscience products, indicating the company's strength and focus in treating neurological disorders, and potential growth in this specialized market.
Chart InsightsJazz Pharmaceuticals' neuroscience revenue is increasingly driven by Xywav and Epidiolex, with both showing strong growth trajectories. Xywav's revenue growth reflects its successful market penetration, while Epidiolex's 15% sales increase in 2024 positions it for blockbuster status in 2025. However, Xyrem faces significant revenue erosion due to generic competition, as highlighted in the earnings call. The strategic focus on Xywav and Epidiolex aligns with the company's guidance for continued growth in 2025, despite challenges like pediatric protocol changes impacting other products.
Data provided by:Main Street Data

Jazz Pharmaceuticals Earnings Call Summary

Earnings Call Date:May 06, 2025
(Q1-2025)
|
% Change Since: -4.54%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a balanced outlook with strong neuroscience performance and R&D progress countered by declining oncology sales and legal settlement impacts. Potential tariff issues could also pose future challenges.
Q1-2025 Updates
Positive Updates
Strong Commercial Performance in Neuroscience
Xywav grew 9% year-over-year, remaining the number one branded treatment for narcolepsy. Epidiolex revenues increased 10% year-over-year, with expectations to reach blockbuster status in 2025.
R&D Pipeline Progress
Significant advancements include a supplemental new drug application for Zepzelca, a positive CHMP opinion for zanidatamab in Europe, and the acquisition of Chimerix, enhancing Jazz's rare oncology presence.
Financial Stability and Guidance
Jazz reported $898 million in total revenues for Q1 2025 and affirmed its total revenue guidance for 2025 at $4.15 billion to $4.4 billion.
Potential Regulatory Approvals
Upcoming potential approvals for Dordaviprone, Zepzelca expansion, and zanidatamab in Europe, with significant data presentations expected at ASCO.
Negative Updates
Oncology Revenue Decline
Rylaze net product sales decreased 8% year-over-year, impacted by changes in pediatric treatment protocols and fewer shipping weeks.
Litigation and Settlement Charges
A $172 million charge related to Xyrem antitrust litigation settlements impacted Q1 earnings.
Tariff Concerns
Potential tariffs on pharmaceutical products imported into the U.S. represent a looming concern that could impact future financials.
Company Guidance
In the first quarter of 2025, Jazz Pharmaceuticals reported strong financial performance, driven by a total revenue of $898 million, with their neuroscience portfolio showing impressive growth. Xywav's net product sales increased by 9% year-over-year, with 14,600 active patients by the end of the quarter, including 125 narcolepsy and 325 IH patients. Epidiolex saw a 10% increase in revenue, reaching approximately $218 million. The company's oncology portfolio faced near-term challenges, with Rylaze experiencing an 8% decline in sales due to changes in pediatric treatment protocols. Despite this, Jazz anticipates growth potential with three regulatory approvals on the horizon, including Dordaviprone and Zepzelca. The company maintains confidence in its top-line revenue guidance and updated its financial guidance to account for the Chimerix acquisition and litigation settlement charges.

Jazz Pharmaceuticals Financial Statement Overview

Summary
Jazz Pharmaceuticals demonstrates strong financial performance with robust profitability and cash flow management, highlighted by a consistent gross profit margin and impressive free cash flow growth. However, moderate leverage due to significant debt levels suggests careful management is needed to mitigate potential risks.
Income Statement
78
Positive
Jazz Pharmaceuticals shows a strong performance in profitability metrics, with a consistent gross profit margin of around 85%. The TTM net profit margin stands at approximately 11.86%, reflecting solid profitability, though slightly lower than the previous year due to a decrease in net income. Revenue growth has been positive, with a 5.55% increase from 2022 to 2023, although TTM figures show a slight decline compared to 2024. The EBIT and EBITDA margins have remained stable, highlighting efficient operational management.
Balance Sheet
65
Positive
The company's balance sheet reflects moderate leverage with a debt-to-equity ratio of approximately 1.3 TTM, which is manageable but indicates reliance on debt. Stockholders' equity has improved, showing a strong equity ratio of 36.2%. Return on Equity has improved significantly, marked at 11.55% TTM, reflecting effective use of equity despite a slight decline in net income. However, the significant debt levels pose a potential risk if not managed carefully.
Cash Flow
82
Very Positive
Jazz Pharmaceuticals demonstrates robust cash flow management with a strong operating cash flow to net income ratio of 3.23 TTM, indicating high cash generation efficiency. The free cash flow has been increasing, with a healthy growth rate of 10.4% from 2023 to 2024. The free cash flow to net income ratio is impressive at 3.09, reinforcing the company's ability to generate sufficient cash to support operations and growth.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.06B4.07B3.83B3.66B3.09B2.36B
Gross Profit3.45B3.62B3.40B3.12B2.65B2.21B
EBITDA1.28B1.37B1.23B553.78M1.03B649.65M
Net Income482.20M560.12M414.83M-214.14M-328.95M238.62M
Balance Sheet
Total Assets11.53B12.01B11.39B10.84B12.30B6.54B
Cash, Cash Equivalents and Short-Term Investments2.57B2.99B1.63B881.48M591.45M2.13B
Total Debt5.42B6.16B5.79B5.80B6.14B2.23B
Total Liabilities7.36B7.92B7.66B7.75B8.33B2.88B
Stockholders Equity4.17B4.09B3.74B3.09B3.97B3.66B
Cash Flow
Free Cash Flow1.49B1.35B1.07B773.78M732.98M520.39M
Operating Cash Flow1.56B1.40B1.09B1.27B778.51M899.65M
Investing Cash Flow-405.22M-508.19M-163.06M-446.23M-5.21B-1.01B
Financing Cash Flow-736.40M20.52M-305.25M-529.49M3.97B528.07M

Jazz Pharmaceuticals Technical Analysis

Technical Analysis Sentiment
Negative
Last Price106.12
Price Trends
50DMA
108.48
Negative
100DMA
118.67
Negative
200DMA
118.18
Negative
Market Momentum
MACD
-0.74
Positive
RSI
43.01
Neutral
STOCH
35.46
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JAZZ, the sentiment is Negative. The current price of 106.12 is below the 20-day moving average (MA) of 108.86, below the 50-day MA of 108.48, and below the 200-day MA of 118.18, indicating a bearish trend. The MACD of -0.74 indicates Positive momentum. The RSI at 43.01 is Neutral, neither overbought nor oversold. The STOCH value of 35.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JAZZ.

Jazz Pharmaceuticals Risk Analysis

Jazz Pharmaceuticals disclosed 44 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 3 New Risks
1.
Recent executive and judicial changes and flux in the regulatory landscape creates uncertainty for us and our industry. Q4, 2024
2.
Anti-diversity, equity and inclusion initiatives could expose us to the risk of litigation or investigations, resulting in injunctions, penalties, or reputational harm. Q4, 2024
3.
Global trade issues and changes in and uncertainties with respect to trade policies and export regulations, including import and export license requirements, trade sanctions, tariffs and international trade disputes, could adversely impact our business and operations, and reduce the competitiveness of our products and services relative to local and global competitors. Q4, 2024

Jazz Pharmaceuticals Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$6.43B13.85147.06%25.65%57.10%
73
Outperform
$6.47B14.4212.25%5.76%49.58%
60
Neutral
$8.52B35.68%-41.71%-9.37%
58
Neutral
$7.74B1.93-8.56%-38.94%-104.46%
56
Neutral
$6.68B-50.16%21.83%
56
Neutral
$6.37B-20.00%112.46%54.33%
51
Neutral
$7.44B0.40-61.90%2.33%17.14%1.55%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JAZZ
Jazz Pharmaceuticals
106.12
1.03
0.98%
HALO
Halozyme
52.02
0.72
1.40%
MDGL
Madrigal Pharmaceuticals
302.64
30.97
11.40%
BBIO
BridgeBio Pharma
43.18
18.27
73.34%
LEGN
Legend Biotech
35.49
-9.25
-20.68%
ROIV
Roivant Sciences
11.27
0.71
6.72%

Jazz Pharmaceuticals Corporate Events

M&A Transactions
Jazz Pharmaceuticals Completes Acquisition of Chimerix
Positive
Apr 21, 2025

On April 21, 2025, Jazz Pharmaceuticals announced the completion of its acquisition of Chimerix, Inc. for approximately $935 million. This acquisition enhances Jazz’s oncology pipeline with the addition of dordaviprone, a novel treatment under FDA Priority Review for H3 K27M-mutant diffuse glioma. The merger positions Jazz to potentially offer the first FDA-approved therapy for this condition, reflecting a significant commercial opportunity and reinforcing its commitment to addressing rare diseases with unmet needs.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jun 14, 2025