Jazz Pharmaceuticals (JAZZ) AI Stock Analysis

• Market Cap: $6.85B
• Dividend Yield: N/A
• Average Volume (3M): 1.33M
• Price to Earnings (P/E): 12.8
• Beta (1Y): 0.66
• Revenue Growth: 5.76%
• EPS Growth: 49.58%
• Country: US
• Employees: 2,800
• Sector: Healthcare
• Sector Strength: 50
• Industry: Biotechnology
• EPS (TTM): 1.68
• Shares Outstanding: 61,632,294
• 10 Day Avg. Volume: 1,062,695
• 30 Day Avg. Volume: 1,332,511
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.57
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 2.64
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $188.29
• Price Target Upside: 92.56% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 18

Jazz Pharmaceuticals exhibits a strong financial foundation with robust revenue and cash flow growth. Despite positive strategic initiatives like the Chimerix acquisition, technical analysis shows a challenging short-term trend. Valuation is attractive, yet the lack of dividend yield and potential revenue impacts from competition necessitate caution. The earnings call highlights strong neuroscience performance but also underlines challenges in oncology and legal costs.

Positive Factors

Pipeline Development

Several pipeline catalysts are expected to drive momentum in Jazz Pharmaceuticals.

Revenue Guidance

The company maintained its revenue guidance, indicating confidence in its long-term prospects.

Risk Management

The company's preparedness for potential tariff impacts through existing inventory and US manufacturing capability demonstrates proactive risk management.

Negative Factors

Earnings Performance

1Q25 EPS was below expectations mainly due to lower revenue and higher SG&A.

Expense Increase

Expenses are expected to increase due to the Chimerix acquisition and additional SG&A and R&D expenses.

Revenue Headwinds

Revenue headwinds impacted product sales, including seasonality in sleep revenues due to re-authorization and inventory build.

Jazz Pharmaceuticals Business Overview & Revenue Model

Company Description

Jazz Pharmaceuticals plc, a biopharmaceutical company, identifies, develops, and commercializes pharmaceutical products for various unmet medical needs in the United States, Europe, and internationally. The company has a portfolio of products and product candidates with a focus in the areas of neuroscience, including sleep medicine and movement disorders; and in oncology, including hematologic and solid tumors. Its lead marketed products include Xyrem, an oral solution for the treatment of cataplexy and excessive daytime sleepiness (EDS) in narcolepsy patients seven years of age and older; Sunosi for the treatment of EDS in patients with narcolepsy and obstructive sleep apnea; Erwinaze to treat acute lymphoblastic leukemia; Defitelio for the treatment of adult and pediatric patients with hepatic veno-occlusive disease; Vyxeos liposome for injection, a product for the treatment of adults with newly-diagnosed therapy-related acute myeloid leukemia; and Zepzelca for the treatment of adult patients with metastatic small cell lung cancer. The company also offers Xywav, an oxybate product candidate, to treat EDS and cataplexy with narcolepsy and idiopathic hypersomnia; JZP-324, a low sodium oxybate formulation with the potential to provide a clinically meaningful option for narcolepsy patients; JZP385, a T-type calcium channel modulator, for the treatment of essential tremor; JZP458, a recombinant Erwinia asparaginase, for use as a component of a multi-agent chemotherapeutic regimen in the treatment of pediatric and adult patients; and JZP150 for treatment of post-traumatic stress disorder. The company has licensing and collaboration agreements with ImmunoGen, Inc.; Codiak BioSciences, Inc.; Pfenex, Inc.; XL-protein GmbH; and Redx Pharma plc. Jazz Pharmaceuticals plc was incorporated in 2003 and is headquartered in Dublin, Ireland.

How the Company Makes Money

Jazz Pharmaceuticals generates revenue through the sale of its pharmaceutical products, primarily in the fields of sleep medicine and oncology. The company's revenue model is heavily reliant on its flagship products, such as Xyrem, a treatment for cataplexy and excessive daytime sleepiness in narcolepsy patients, and Vyxeos, a chemotherapy treatment for specific types of acute myeloid leukemia (AML). Additionally, Jazz invests in research and development to expand its product portfolio and pipeline, aiming to bring new and innovative treatments to market. The company also engages in strategic partnerships and collaborations to enhance its research capabilities and expand its market reach. Key revenue streams include product sales, licensing agreements, and collaborations with other pharmaceutical companies.

Jazz Pharmaceuticals Financial Statement Overview

Summary

Jazz Pharmaceuticals shows strong revenue growth and excellent cash flow management. Their balance sheet is stable with low leverage, although there is room for improvement in net profitability and equity strengthening.

Income Statement

Jazz Pharmaceuticals has shown strong revenue growth with a 6.12% increase from 2023 to 2024. The gross profit margin is excellent, at 100%, indicating effective cost management. The EBIT margin improved to 17.61%, reflecting better operational efficiency. However, the net profit margin is at 13.77%, indicating room for improvement in controlling non-operational expenses.

Balance Sheet

The company has a low debt-to-equity ratio of 0.02, showcasing strong leverage management. The return on equity is 13.68%, which is healthy but could be improved. The equity ratio stands at 34.07%, indicating a balanced capital structure but with a relatively high level of liabilities.

Cash Flow

Jazz Pharmaceuticals exhibits an impressive free cash flow growth rate of 30.69% from 2023 to 2024. The operating cash flow to net income ratio is 2.49, suggesting strong cash generation relative to net income. The free cash flow to net income ratio is 2.49, indicating robust cash flow management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.07B	3.83B	3.66B	3.09B	2.36B
	Gross Profit
4.07B	3.40B	3.12B	2.65B	2.21B
	EBIT
716.63M	578.58M	512.27M	170.28M	765.46M
	EBITDA
716.63M	1.23B	553.78M	1.03B	649.65M
	Net Income Common Stockholders
560.12M	414.83M	-214.14M	-328.95M	238.62M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.99B	1.63B	881.48M	591.45M	2.13B
	Total Assets
12.01B	11.39B	10.84B	12.30B	6.54B
	Total Debt
69.94M	5.79B	5.80B	6.14B	2.23B
	Net Debt
-2.34B	4.29B	4.91B	5.55B	1.18B
	Total Liabilities
7.92B	7.66B	7.75B	8.33B	2.88B
	Stockholders Equity
4.09B	3.74B	3.09B	3.97B	3.66B
Cash Flow		Free Cash Flow
1.35B	1.07B	773.78M	732.98M	520.39M
	Operating Cash Flow
1.40B	1.09B	1.27B	778.51M	899.65M
	Investing Cash Flow
-508.19M	-163.06M	-446.23M	-5.21B	-1.01B
	Financing Cash Flow
20.52M	-305.25M	-529.49M	3.97B	528.07M

Jazz Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 97.78
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JAZZ, the sentiment is Negative. The current price of 97.78 is below the 20-day moving average (MA) of 107.38, below the 50-day MA of 121.11, and below the 200-day MA of 118.75, indicating a bearish trend. The MACD of -3.67 indicates Positive momentum. The RSI at 33.01 is Neutral, neither overbought nor oversold. The STOCH value of 2.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JAZZ.

Jazz Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HALO	78 Outperform	$7.34B	17.30	147.06%	―	25.65%	57.10%
JAZZ	73 Outperform	$6.85B	12.78	12.25%	―	5.76%	49.58%
BBIO	57 Neutral	$7.01B	―	35.68%	―	-41.71%	-9.37%
MDGL	56 Neutral	$6.55B	―	-50.16%	―	―	21.83%
Sector *	52 Neutral	$5.17B	3.59	-42.19%	2.82%	15.05%	-0.04%
ROIV	51 Neutral	$7.89B	1.93	-7.10%	―	-20.84%	-102.48%
LEGN	47 Neutral	$5.76B	―	-15.45%	―	119.97%	67.21%

Jazz Pharmaceuticals Corporate Events

Jazz Pharmaceuticals Completes Acquisition of Chimerix

On April 21, 2025, Jazz Pharmaceuticals announced the completion of its acquisition of Chimerix, Inc. for approximately $935 million. This acquisition enhances Jazz’s oncology pipeline with the addition of dordaviprone, a novel treatment under FDA Priority Review for H3 K27M-mutant diffuse glioma. The merger positions Jazz to potentially offer the first FDA-approved therapy for this condition, reflecting a significant commercial opportunity and reinforcing its commitment to addressing rare diseases with unmet needs.

Spark’s Take on JAZZ Stock

According to Spark, TipRanks’ AI Analyst, JAZZ is a Neutral.

Jazz Pharmaceuticals presents a mixed outlook. Strong financial performance and strategic acquisitions support a positive long-term view. However, current technical indicators suggest a challenging stock trend in the short term. Valuation appears favorable with a low P/E ratio, but the lack of dividends and potential revenue impacts from generic competition add caution. The earnings call’s positive sentiment and strategic initiatives, despite some challenges, contribute to a moderately positive score.

To see Spark’s full report on JAZZ stock, click here.

Jazz Pharmaceuticals to Acquire Chimerix in $935M Deal

On March 4, 2025, Jazz Pharmaceuticals announced a merger agreement to acquire Chimerix for $8.55 per share, totaling approximately $935 million. This acquisition will enhance Jazz’s oncology portfolio by adding dordaviprone, a treatment for H3 K27M-mutant diffuse glioma, a rare brain tumor. The transaction, approved by both companies, is expected to close in the second quarter of 2025. Dordaviprone, which has shown promising clinical trial results, is under FDA review for accelerated approval. The acquisition is anticipated to strengthen Jazz’s presence in the rare oncology space and provide a significant commercial opportunity, potentially making dordaviprone a standard of care for this rare disease.