Jazz Pharmaceuticals PLC (NASDAQ:JAZZ) received an Outperform rating and a target price of $160 from Baird, citing optimistic expectations for the company's performance in the coming year.
Initiating coverage of the stock, Baird analysts are anticipating a positive trend for Jazz over the next year, driven primarily by the growth of key business products, particularly Xywav – a narcolepsy treatment – and Epidiolex, an oral cannabinoid solution for severe epilepsy.
“We're encouraged by the growth in Xywav sales over the last year, which appears to us to be mostly conversions from Xyrem or other sodium oxybates,” Baird analysts wrote.
“We anticipate growth in 2024 will persist and be driven by further conversion from Xyrem, and new patient starts, especially in Idiopathic Hypersomnia, for which Xyrem remains the only approved therapy.”
The late-stage data readouts for Zanidatamab, Suvecaltamide, and Zepzelca are also identified as potential catalysts.
Baird also highlighted the solid foundation of Epidiolex, pointing to multiple global opportunities and phase 3 results in Japan anticipated in 2024.
In 2024, Jazz anticipates significant developments in its late-stage clinical trials for various health conditions. The company expects Phase 2b results for suvecaltamide in essential tremor during the first half of the year, with approximately a 5% potential impact on outcomes. The optimism stems from favorable data observed in a competitor's treatment, ulixacaltamide.
Later in the year, Jazz expects Phase 3 results for zanidatamab in first-line gastroesophageal adenocarcinoma (GEA) and Phase 3 results for Zepzelca in first-line ES-small cell lung cancer (ES-SCLC). The company sees a nearly 10% potential impact for GEA and ~5% for ES-SCLC.
The favorable risk/reward ratio is based on promising data in similar indications observed thus far, analysts noted.
Shares of Jazz were down 0.7% on Wednesday afternoon.