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Wall Street Analysts Are Mostly Positive on Jazz Pharmaceuticals

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Recent developments

In August 2018, Jazz Pharmaceuticals (JAZZ) and the University of Texas MD Anderson Cancer Center entered a five-year collaboration agreement to investigate therapies for the treatment of multiple hematologic malignancies such as AML (acute myeloid leukemia) and myelodysplastic syndrome.

Initially, Jazz Pharmaceuticals and MD Anderson Cancer Research Center will focus on research related to the Vyxeos liposome injection. In August 2017, the FDA approved Vyxeos for the treatment of adult individuals with newly diagnosed therapy-related AML or AML with myelodysplasia-related changes.

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Guidance for 2018

Jazz Pharmaceuticals anticipates net revenues to be in the range of $1.88 million to $1.93 million in fiscal 2018. Jazz Pharmaceuticals expects the GAAP gross margin to be around 93%.

Jazz Pharmaceuticals anticipates GAAP SG&A (selling, general, and administrative) expenses to be in the range of $655 million and $694 million and non-GAAP SG&A expenses of $525 million and $555 million. Jazz expects GAAP R&D expenses to be around $232 million and $255 million and non-GAAP R&D expenses to be in the range of $205 million and $255 million. In fiscal 2018, Jazz Pharmaceuticals anticipates GAAP net income per share to be in the range of $5.70 and $6.90.

Analyst recommendations

Of the 22 analysts tracking Jazz Pharmaceuticals in August 2018, five of them recommended a “strong buy,” while 12 analysts recommended a “buy.” Five analysts recommended a “hold” for Jazz in August 2018. On August 7, Jazz Pharmaceuticals had a consensus 12-month target price of $194.36, which represents an ~8.04% return on investment over the next 12 months.

Peers’ ratings

In August 2018, of the 19 analysts tracking Alexion Pharmaceuticals (ALXN), ~89% of them recommended “buys.” In comparison, of the 23 analysts tracking BioMarin Pharmaceuticals (BMRN), ~83% of them recommended “buys.”

On August 7, Alexion Pharmaceuticals and BioMarin Pharmaceuticals had consensus 12-month target prices of $159.17 and $118.75, respectively, which represents ~30.04% and ~3.26% returns on investment over the next 12 months.

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