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How Analysts Rated Jazz Pharmaceuticals in December

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Jan. 4 2018, Published 9:17 a.m. ET

Recent developments

In December 2017, Jazz Pharmaceuticals (JAZZ) submitted a New Drug Application (or NDA) to the FDA for the approval of JZP-110 (solriamfetol) for the treatment of individuals with narcolepsy or obstructive sleep apnea (or OSA).

Jazz Pharmaceuticals’ NDA was based on the results from its Phase 3 TONES 2 trial, which evaluated excessive sleepiness in patients with narcolepsy, and its two Phase 3 trials (TONES 3 and TONES 4 trials), which evaluated excessive sleepiness in adults with OSA. Jazz Pharmaceuticals also conducted a Phase 3 TONES 5 trial, which evaluated long-term safety and maintenance of efficacy in the treatment of individuals with narcolepsy or OSA.

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In November 2017, Jazz Pharmaceuticals also submitted an MAA (Marketing Authorization Application) to the European Medicines Agency’s Committee for Medicinal Products for Human Use (or CHMP) for Vyxeos for the treatment of adults with high-risk acute myeloid leukemia (or AML) with myelodysplasia-related changes.

The approval of new drugs is expected to further strengthen Jazz Pharmaceuticals’ product portfolio and simultaneous revenue growth. The revenue growth of Jazz Pharmaceuticals could boost the share price of the PowerShares Dynamic Pharmaceuticals ETF (PJP). Jazz Pharmaceuticals makes up ~2.5% of PJP’s total portfolio holdings.

Analysts’ recommendations

Twenty-two analysts were tracking Jazz Pharmaceuticals in December 2017. Five of them recommended “strong buys” on the stock, while 12 recommended “buys.” Five analysts recommended “holds,” while none recommended any form of a “sell.”

On December 29, Jazz Pharmaceuticals had a consensus 12-month target price of $178.68, which represents a 32.7% return on investment over the next 12 months.

Competitors’ ratings

Of the ten analysts tracking Agios Pharmaceuticals (AGIO) in December 2017, three analysts recommended “strong buys,” and six recommended “buys” on the stock. One recommended a “hold.” On December 29, 2017, Agios Pharmaceuticals had a consensus 12-month target price of $77.11, representing a 34.9% return on investment over the next 12 months.

Of the 12 analysts tracking Horizon Pharma (HZNP) in December 2017, three analysts recommended “strong buys,” and seven recommended “buys” on the stock. Two analysts suggested “holds” for Horizon Pharma in December 2017. In December, Horizon Pharma had a consensus 12-month target price of $18.25, representing a 25% return on investment over the next 12 months.

Of the 14 analysts tracking Ionis Pharmaceuticals (IONS) in December 2017, one recommended a “strong buy,” while four recommended “buys” on the stock. In December, Ionis Pharmaceuticals had a consensus 12-month target price of $57, representing a ~13.3% return on investment over the next 12 months.

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