Breaking into the Cannabis industry with strength
The company recently announced annual revenue of $2.9 billion, with an adjusted earning per share of $12.46.
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Precious Njoku is a Medical graduate from the Australian National University with extensive knowledge in the health and pharmaceutical industry.
2021-12-18 10:16

Of course, not a smooth musical playing company, Jazz phama is about to lead the cannabis sector in the nearest future. The golden age of innovation is upon us causing an ongoing revolution in the pharmaceutical and health care industries and many of these companies are expanding their focus to other sources of ingredients to improve our quality of life.

A notable mention of a company leading the innovative space is Jazz Pharmaceuticals Plc (NASDAQ: JAZZ), an Irish company founded in 2003 with recent heavy investment in the cannabis sector. Jazz Pharmaceuticals is famous for its brand product, Xyrem, used for treating narcolepsy, which became part of its product range when it acquired Orphan Medical in 2005. Other notable products include Erwinase, a treatment option for acute lymphoblastic leukemia (ALL), Vyxeos, also for treating leukemia, and Xywav (calcium, magnesium, potassium, and sodium oxybates) oral solution for the treatment of idiopathic hypersomnia (IH). In addition, ongoing clinical trials for treating essential tremors, small cell lung cancer, and lymphoblastic leukemia give positive results.

Although the markets reacted poorly to the recent revenue projection from Jazz Pharmaceuticals, the low revenue was due to the expenses incurred due to its recent acquisition of GW Pharma. The fun fact is that GW pharma drug, Epidiolex is the first cannabis based drug approved by the FDA for the treatment of children epilepsy, a condition which causes recurrent seizures and can be fatal if not properly managed. Also in August 2020, the FDA also approved Epidiolex for the treatment of Tuberous Multiple Sclerosis, a rare but dilabilitating disease. It is expected that this would be a booster for revenue for JAZZ in the coming years.

Currently trading at $125.45, the 12-month price forecast foresees Jazz Pharmaceuticals stock reaching a high of $250 (>100% growth) in 2022 with a median target of $202. By the 3rd Quarter of 2021, the stock rose by 26.65%. The earnings per share are at $4.22. Analysts and investors believe Jazz Pharmaceuticals is bullish, both in the long term and short term, although there was a downtrend in the stock growth for 2020.

Overall, its drugs are doing great. A new drug, Zepzelca, for fighting cancer, has seen exponential sales since its launch in July 2020. It contributed $55.9 million to revenue in the 2nd quarter of 2021.

The company recently announced annual revenue of $2.9 billion, with an adjusted earning per share of $12.46. More than 70% of its sales came from Xyrem, increasing sales and Xywav oral solution. These positive accomplishments have not gone unnoticed as the market is bullish on Jazz Pharmaceuticals

Jazz Pharmaceuticals stock may be a cheap buy currently and not in the rank of the Big Pharma companies. Still, multiple analysts have projected it to be a good buy, particularly since it has significant upside in the cannabis sector.

Overall, Jazz Pharmaceuticals stock has strengthened fundamentals. As a result, it promises to give long-term returns for the wise investor.


Disclaimer: I have no positions in any of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. All information should be independently verified and should not be relied upon for purposes of transacting securities or other investments. See terms for more info.

Published On
2021-12-18 10:16

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About the Author
Precious Njoku is a Medical graduate from the Australian National University with extensive knowledge in the health and pharmaceutical industry.



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