Jazz Earnings: Strong Demand for Epidiolex and Xywav Drive Growth; Shares Very Undervalued

Jazz Pharmaceuticals’ first-quarter results were highlighted by strong performance from Xywav (for sleep disorders) and Epidiolex (for the treatment of severe, rare forms of epilepsy), each growing revenue by 9% and 10% year over year, respectively. Management reaffirmed its 2025 revenue guidance, and the company is continuing to track our expectations. We forecast 2025 revenue will reach $4.3 billion, representing growth of roughly 6% year over year. We maintain our fair value estimate of $187 per share, and the stock is trading in 5-star territory at an attractive entry point for long-term investors.