Jazz Earnings: Record Revenue Achieved Thanks to Strong Uptake of Growth Drivers; Shares Undervalued

Jazz Pharmaceuticals reported strong second-quarter results, highlighted by record revenue of over $1 billion, driven by demand for Jazz’s key growth drivers of Xywav, Epidiolex, and Rylaze. These fast-growing drugs helped offset a 61% decrease in Xyrem sales. Total revenue increased by 7% from 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 40% below our fair value estimate. Strong demand for Xywav, Epidiolex, and Rylaze will drive growth, and we forecast about $4.08 billion in total revenue for 2024.