Jazz Pharmaceuticals plc – Ordinary Shares (NASDAQ:JAZZ) stock is on a 9% rise after receiving abbreviated new drug application (ANDA) approval as well as a positive FDA ruling on the firm’s CP. In reaction, Cantor analyst William Tanner believes JAZZ management sees the decision as a “clear win” and reiterates an Overweight rating on shares of JAZZ with a $187 price target, which represents a just under 48% increase from where the stock is currently trading.
The analyst notes, “JAZZ management has often described the Xyrem patent litigation decision process to us as being influenced by ‘more cards being turned over,’ the upshot being that, depending upon the card dealt, the strategy might shift. Of the two cards dealt yesterday, an ANDA approval and an FDA decision on JAZZ’s CP, we believe JAZZ has gained the upper hand. Based on years of conversations we have had with investors, FDA’s decision to waive the requirement of a single, shared REMS was likely a surprise.”
Ultimately, “Whether that decision stands a challenge, as noted in the recent 8-K filing, remains to be determined. If the CP stands, however, we see no way that a generic sodium oxybate product could be launched unless the FDA abdicates its oversight duties for the drug’s safe use. Aside from the litigation, we believe 2017 will be a year in which investors begin to value the pipeline more highly and Jazz’s ability to efficiently develop new assets,” Tanner contends.
According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, three-star analyst William Tanner is ranked #1,655 out of 4,350 analysts. Tanner has a 49% success rate and gains 3.1% in his annual returns. When recommending JAZZ, Tanner garners 31.1% in average profits on the stock.
TipRanks analytics exhibit JAZZ as a Strong Buy. Out of 9 analysts polled by TipRanks in the last 3 months, 8 are bullish on Jazz Pharmaceuticals stock and 1 remains sidelined. With a return potential of nearly 41%, the stock’s consensus target price stands at $179.14.
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