5. Jazz Pharmaceuticals (NASDAQ:JAZZ)
Market Cap: $6.88 billion
Forward P/E: 5.71
EPS Growth This Year: 7.00%
Number of Hedge Fund Holders: 44
Jazz Pharmaceuticals (NASDAQ:JAZZ) develops medicines for serious diseases. Its primary marketed products include Xywav, Xyrem oral solution, Epidiolex oral solution, Rylaze, Zepzelca, Defitelio, and Vyxeos liposome for injection. These medicines treat excess daytime sleepiness (EDS) in narcolepsy patients seven years of age or older, tepatic veno-occlusive disease (VOD), and other ailments.
Jazz Pharmaceuticals (NASDAQ:JAZZ) boasts a significant commercial presence, making Q2 2024 its largest revenue quarter ever. It generated more than $1 billion in total revenues across its growing and diversified portfolio of medicines. In narcolepsy, its product Xywav remains the number one treatment, experiencing strong patient demand. Xywav is also the first and only approved therapy for Idiopathic hypersomnia, helping the company build the market. Epidiolex has continued performance in the market for around six years, growing sales to around $247 million in Q2. These numbers highlight the potential of the company’s products.
Patient demand is continuing to increase due to several US commercial initiatives undertaken by the company. Its market expansion outside the US is also continuing rapidly. It’s oncology therapeutic area is experiencing continued growth as well, with Zepzelca having a strong quarter. Rylaze is also seeing increased utilization in the pediatric population.
Jazz Pharmaceuticals (NASDAQ:JAZZ) is undertaking initiatives to ensure that it continues on this positive trajectory. It is using a mid-to-long-term framework to ensure it allocates capital for the maximization of patient benefits and company value instead of merely maximizing near-term margins.
Aristotle Capital Global Equity Strategy made the following comment about Jazz Pharmaceuticals plc (NASDAQ:JAZZ) in its Q3 2023 investor letter:
“During the quarter, we sold our position in Magna International and invested in a new position, Jazz Pharmaceuticals plc (NASDAQ:JAZZ). Founded in 2003, Jazz Pharmaceuticals is a global biopharmaceutical company headquartered in Ireland. The drugmaker’s portfolio of nine approved products focuses on conditions with limited therapeutic treatments in neuroscience (~75% of 2022 revenue) and oncology (~25%).
Jazz’s drug Xyrem was added to its portfolio in 2005 and was approved for use in patients with narcolepsy. The drug’s strong efficacy propelled it to be the standard of care for this incurable sleep condition and has achieved wide adoption for treating excessive daytime sleepiness and cataplexy (episodes of loss of muscle control).
Xyrem’s patent exclusivity ended in January 2023, and authorized generic versions of the product have entered the market. To prepare for the patent cliff, the company developed Xywav, a lower‐sodium version of Xyrem, which is touted for its potentially better heart safety. The drug has received FDA approval for the treatment of narcolepsy and idiopathic hypersomnia and has orphan drug exclusivity through 2027…”
