Jazz Pharmaceuticals Inc. (NASDAQ: JAZZ)

Jazz Pharmaceuticals Inc. (JAZZ) is a specialty pharmaceutical company focused on developing and commercializing products to meet unmet medical needs in neurology and psychiatry. The marketed products and late-stage product candidate of the Company include Xyrem (sodium oxybate) oral solution, Luvox CR (fluvoxamine maleate) extended-release capsules and JZP-6 (sodium oxybate). The other product candidates in clinical development are JZP-8 (intranasal clonazepam), being developed for the treatment of recurrent acute repetitive seizures in epilepsy patients who continue to have seizures while on stable anti-epileptic regimens, JZP-4 (sodium and calcium channel antagonist), being developed for the treatment of epilepsy and bipolar disorder, and JZP-7 (ropinirole gel), being developed for the treatment of restless legs syndrome.

Jazz Pharmaceuticals Inc. was founded in 2003 and is headquartered in Palo Alto, California.

Source: Reuters.com, SEC Filings.

Financial Summary

Total revenues for the third quarter of 2009 were $30.8 million, compared to $17.7 million for the quarter ended September 30, 2008. XYREM(R) (sodium oxybate) oral solution net sales for the third quarter of 2009 were $25.0 million, compared to $14.2 million for the third quarter of 2008, and represented a 12% sequential increase over net sales of $22.4 million for the second quarter of 2009. Net sales of once-daily LUVOX CR(R) (fluvoxamine maleate) extended-release capsules were $5.0 million for the third quarter of 2009, compared to $2.0 million for the third quarter 2008, and represented a 20% sequential increase over net sales of $4.1 million for the second quarter of 2009. Total revenues for the third quarter of 2009 also included $0.8 million in royalties and contract revenue. Research and development expenses for the third quarter of 2009 were $7.6 million, compared to $12.1 million for the third quarter of 2008. This reduction from $11.2 million for the second quarter of 2009 was primarily due to the completion of the second Phase III pivotal clinical efficacy trial for JZP-6, sodium oxybate for the treatment of fibromyalgia, in June of 2009. JAZZ expects to submit a New Drug Application for JZP-6 by the end of 2009. JAZZ’s net loss for the third quarter of 2009 was $1.7 million, compared to a net loss of $28.8 million for the third quarter of 2008.

Source: Reuters.com, SEC Filings.

Analyst Consensus

No chart available.

Source: www.ft.com

Source: http://www.reuters.com/finance/stocks/financialHighlights?symbol=JAZZ.W

Investment Highlights

JAZZ announced in early December that Kathryn E. Falberg has been appointed senior vice president and chief financial officer. Falberg has more than 20 years of financial officer and director experience. As JAZZ’s CFO, Falberg will be responsible for the Company’s accounting, corporate finance, financial planning, investor relations and treasury functions. Falberg joins JAZZ from ARCA biopharma, where she served as CFO and chief operating officer. From 2001 until joining ARCA in 2009, Falberg worked as an active investor and consultant to small companies and served as a corporate director/audit committee chair for several companies. From 1995 through 2001, Falberg was with Amgen Inc., where she served as senior vice president of finance, strategy and CFO, and before that as vice president, controller and chief accounting officer, and vice president, treasurer. Falberg currently serves on the boards of directors for ESS Technology, Halozyme Therapeutics and QLT. Falberg received an M.B.A. and B.A. in economics from the University of California, Los Angeles and is a CPA.

Source: http://www.jazzpharmaceuticals.com/

Technical Analysis

JAZZ has been relatively stable recently. This is evidenced by the width of its Bollinger Bands, which are tighter than normal. Additionally, JAZZ is trading within its Bollinger Bands. This is a normal condition and suggests that the stock is neither overbought nor oversold relative to the recent price action.

The MACD for JAZZ currently indicates a strong bullish signal for two reasons. First, the MACD is above the signal line, a 9-day moving average. Second, the MACD is above 0, which implies that the underlying moving averages are trending higher.

Comparative Analysis

Source: Thomson Financial

Insider Trading Activity

Source: Yahoo Finance

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