Jazz Earnings: Strong Uptake of Xywav and Epidiolex Drive Sales; Shares Undervalued

Jazz Pharmaceuticals delivered solid year-end results, highlighted by record revenue of $4.1 billion that represented 6% growth over 2023. Strong patient uptake of Xywav (for sleep disorders) and Epidiolex (for the treatment of severe, rare forms of epilepsy) were the primary growth drivers, with sales increasing 16% and 15%, respectively, year over year. Jazz’s results are tracking our expectations, and we maintain our fair value estimate of $187 per share. Shares are trading at a moderately attractive entry point in 4-star territory about 25% below our fair value.