10 Most Promising Biotech Stocks According to Hedge Funds

5. Jazz Pharmaceuticals plc (NASDAQ:JAZZ)

Average Upside: 65.11%

Number of Hedge Fund Holders: 44

Jazz Pharmaceuticals plc (NASDAQ:JAZZ) is a biopharmaceutical company focused on developing treatments for neurological disorders and oncology.

Stifel recently reaffirmed its Buy rating on Jazz Pharmaceuticals plc (NASDAQ:JAZZ), maintaining a price target of $230. The firm highlighted Jazz’s promising oncology drug, zanidatamab (Zani), which is being developed for HER2-resistant cancers. Zani has the potential to become a first-line therapy due to its strong anti-HER2 profile. An upcoming FDA decision on its use for second-line bile duct cancer (BTC), with a Prescription Drug User Fee Act (PDUFA) date set for November 29, 2024, is especially important, as no approved therapies currently exist for this condition, giving Zani the chance to lead in this space.

In Q2 2024, Jazz Pharmaceuticals plc (NASDAQ:JAZZ) reported its highest-ever quarterly revenue, exceeding $1 billion. This record performance was largely driven by its key neuroscience products, Xywav and Epidiolex/Epidyolex. Xywav, a treatment for narcolepsy and idiopathic hypersomnia, saw a 13% year-over-year increase in sales, while Epidiolex, used for seizure conditions, posted a 22% year-over-year sales growth.

By the end of Q2 2024, 44 hedge funds held stakes in Jazz Pharmaceuticals plc (NASDAQ:JAZZ), with Vester Point Capital holding the largest position of 1.5 million shares, valued at over $160 million.