Jazz Pharmaceuticals, Inc. (NASDAQ:JAZZ)

CAPS Rating: 3 out of 5

A specialty pharmaceutical company, which focused on identifying, developing and commercializing innovative products to meet unmet medical needs in neurology and psychiatry.


Player Avatar TMFUltraLong (99.95) Submitted: 6/9/2011 3:45:53 AM : Outperform Start Price: $27.05 JAZZ Score: +88.86

It's no secret that the technicals are a bloody mess, but based on the fundamentals alone this company looks like a very probably double. I'm basing this on the fact that Xyrem has been growing considerably faster than anyone had accounted for and Luvox continues to offer a nice supplement to the bottom line. Think about this - even with the earnings beats, Jazz is trading at just 6.6 times 2012 earnings despite revenue growth of 44% in 2011 and 26% in 2012. How about a PEG Ratio of just 0.68 based on 5-year growth estimates? How this company is not trading north of $55 or actively being courted by a larger pharmaceutical name is beyond me. Don't believe me? Believe this guy:http://www.fool.com/investing/high-growth/2011/05/18/10-mid-caps-to-rule-them-all.aspx?source=itxsitmot0000001&lidx=1Oh wait, that's me too! Guess I must really like this company huh?TMFUltraLong

Report this Post 4 Replies
Member Avatar guerramo (< 20) Submitted: 10/19/2011 11:38:04 PM
Recs: 0

I wish I saw your posting back in June. Obviously, you were wrong because you were looking at the wrong patterns. In any case, jump to today's date, all I can say is if anyone is going long this stock and ignoring this type of news must be looking for pain. This is different from the previous warning letter, because it involves a good number of patients having adverse effects from the drug (the only drug the company has). It takes a lot for the FDA to issue warning letters, and the receiving companies will have to spend so much time and money to correct the deficiencies and make the FDA lift the warning letter.

If the warning letter concerns procedural deficiencies, it can go away by showing you have corrected your standard operating procedures. However, if the warning letter pertains to patients’ adverse effects (regardless whether the company reported them or not), it means there is a safety issue with this drug being in the market. Eventually, the case can escalate where the FDA will force the company to enter into a consent decree and face a battle in court. While that’s happening, forget about the FDA approving anything for you (even forget about any joint venture or acquisition).

Do not under-estimate what the FDA can do, once it issues a warning letter to a company. You can do your research and find out what happened with Barr, Abbott, Wyeth, Elan, ..etc. By the time JAZZ sends a response within 15 days (and all they will say is that they will need time to conduct their own investigation of the adverse effects), the large shareholders including the insiders will be dumping the shares quickly; look at the huge selling volume since the news broke out. It’s the little guy who will be standing holding the stick. Get out while you can.

Member Avatar Maximix (< 20) Submitted: 11/5/2011 4:17:41 AM
Recs: 0

Chck out the Jazz Message Board at Yahoo Finance,Some weeks ago when the FDA
complained to Jazz about plant conditions in Cal, I looked at their balances and found
a huge GOODWILL build up,

Then there is the upcoming marriage with that private Irish pharma :,
how will totally new situation work out? That Irish business looks like a steady affair but they need some
significant big movers to continue showing those sensational earnings that kept Jazz shares
rising so wellin the last 3 years,
I agree with Querramo .But keep an eye on Jazz, Will they be able continue to thrive?
Management has , after all, shown some interesting talents.


Member Avatar investingNideas (< 20) Submitted: 12/21/2011 3:46:13 PM
Recs: 0

FDA has ACCUSED them of Hiding DEATH and Abuse!

FDA inspectional observations, dated May 20, 2011, and note that it lacks sufficient corrective actions, as detailed below.

WARNING: Central nervous system depressant with abuse potential. Sodium oxybate is GHB, a known drug of abuse. Abuse has been associated with some important central nervous system (CNS) adverse events (including death).


Short Interest on the way up since FDA many letters via investingNideas.com

11/30/2011 1,530,457 538,869 2.840128
11/15/2011 1,437,139 1,054,196 1.363256
10/31/2011 1,386,164 1,039,308 1.333737

Member Avatar DrGoldin (99.71) Submitted: 4/11/2013 3:31:15 AM
Recs: 0

@investingNideas: Looks like those shorts got squeezed, doesn't it?

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