Jazz Pharmaceuticals: Needham Reiterates Buy Rating, Raises PT to $202

Jazz Pharmaceuticals: Needham Reiterates Buy Rating, Raises PT to $202

Jazz Pharmaceuticals (JAZZ) has seen its stock price rise following analyst upgrades and new Phase 4 findings on Xywav, its oral solution for narcolepsy. Needham & Company analyst, Tim Anderson, reiterated his "Buy" rating on the stock and raised his price target to $202, an increase of 74% from the current price of $111.87. Anderson cited the company's strong commercial performance and the promising results from the Phase 4 XYLO switch study presented at SLEEP 2025 [1].

The Phase 4 XYLO switch study demonstrated that switching from twice-nightly high-sodium oxybate to the same dosage of low-sodium oxybate, Xywav, for six weeks resulted in clinically meaningful blood pressure reductions in participants with narcolepsy. The study also achieved key secondary endpoints, including improvements in daytime and seated resting blood pressure, and overall safety was consistent with Xywav's known safety profile [2].

Jazz Pharmaceuticals reported strong Q1 2025 financial results, with total revenue of $898 million, driven by a 9% year-over-year growth in Zywav revenue. The company's neuroscience portfolio, particularly Zywav and Epidiolex, continues to perform well, with Epidiolex revenues increasing by 10% year-over-year. The acquisition of Chimerix has also strengthened Jazz's presence in rare oncology, adding Dordaviprone to its pipeline [1].

Despite these positive developments, Jazz Pharmaceuticals faces near-term headwinds, including a $172 million charge related to Xyrem antitrust litigation settlements and a decline in oncology product revenues. Additionally, potential tariffs and their impact on the supply chain remain a concern [1].

The company's R&D pipeline is also making progress, with the submission of a supplemental new drug application for Zepzelca and a positive CHMP opinion for Zanidatamab in Europe. Jazz Pharmaceuticals has affirmed its 2025 revenue guidance at $4.15 billion to $4.4 billion and updated its SG&A guidance to $1.47 billion to $1.53 billion, reflecting additional investment in Dordaviprone [1].

References:

[1] https://www.gurufocus.com/news/2917089/jazz-pharmaceuticals-jazz-reveals-new-findings-on-xywav-at-sleep-2025-jazz-stock-news
[2] https://www.morningstar.com/news/pr-newswire/20250609sf06179/jazz-pharmaceuticals-presents-late-breaking-phase-4-data-showcasing-xywav-calcium-magnesium-potassium-and-sodium-oxybates-oral-solution-treatment-outcomes-in-narcolepsy-at-sleep-2025