Here's Why You Should Consider Buying Jazz Pharmaceuticals' Stock

Core Insights - Jazz Pharmaceuticals focuses on neuroscience and oncology, with significant revenue derived from sleep disorder drugs Xywav and Xyrem, and a growing oncology portfolio [1][6] Group 1: Sleep Disorder Portfolio - Jazz's sleep disorder portfolio includes two commercialized drugs, Xyrem and Xywav, with ongoing development activities in the sleep therapeutic area [3] - Xywav, approved by the FDA in July 2020, is the first and only treatment for idiopathic hypersomnia, expanding its label in August 2021 [4] - The transition of patients from Xyrem to Xywav is negatively impacting Xyrem sales but positively contributing to Xywav's growth due to its low-sodium formulation [5] Group 2: Oncology Portfolio - Jazz markets four oncology drugs, contributing over 25% of product revenues in the first half of 2024, with expectations of generating $1.10 billion to $1.15 billion in product sales from oncology in 2024 [6][7] - The oncology portfolio includes both older drugs like Defitelio and Vyxeos, and newer drugs such as Rylaze and Zepzelca, with increasing contributions from the latter [6] - Key pipeline candidates include zanidatamab, currently under regulatory review for biliary tract cancer, with a final FDA decision expected by November 24 [7] Group 3: Neuroscience Portfolio - The acquisition of GW Pharmaceuticals in 2021 introduced cannabidiol drugs like Epidiolex and Sativex, diversifying Jazz's neuroscience portfolio and reducing reliance on the oxybate franchise [8] - Epidiolex is expected to achieve blockbuster status by 2025, driven by a growing global prescriber base and ongoing studies for new indications [8] Group 4: Stock Performance and Estimates - Jazz's stock has increased by 5.3% over the past three months, compared to a 10.3% increase in the industry [9] - Earnings estimates for 2024 have risen from $19.36 to $19.53 per share, and for 2025 from $21.70 to $21.88 per share over the past 60 days [11] - Despite recent pipeline setbacks, Jazz's improving earnings performance and ongoing innovation support a positive outlook for the stock [12]