Jazz Pharmaceuticals Earnings: Xywav, Rylaze, and Epidiolex Drive Sales; Shares Undervalued

Jazz Pharmaceuticals delivered solid first-quarter results, highlighted by a 12% increase in revenue from its combined key growth drivers of Xywav, Epidiolex, and Rylaze. These fast-growing drugs helped offset a 64% decrease in Xyrem sales, as total revenue increased only 1% in the first quarter compared with the prior-year period. Jazz's results are tracking our expectations, and we maintain our fair value estimate of $187 per share. We believe shares are trading at an attractive entry point in 4-star territory about 42% below our fair value estimate. We forecast Xywav, Rylaze, and Epidiolex will continue to deliver double-digit-percentage growth in 2024, and we anticipate Jazz will reach over $4.1 billion in total revenue.