Jazz Pharmaceuticals (NASDAQ: JAZZ) is currently trading at approximately $110, down 11% year-to-date, following the European Commission’s conditional Marketing Authorization for Ziihera (zanidatamab) for advanced HER2-Positive Biliary Tract Cancer, which targets an estimated peak annual sales of over $2 billion. The stock’s decline is largely due to a reduced 2025 earnings estimate, revised down from $22.50-$24 to $4-$5.60, attributed to $1.1 billion in one-time IPR&D charges from its $935 million Chimerix acquisition.
Jazz Pharmaceuticals has shown a revenue growth rate of 7.3% in the last three years, surpassing the S&P 500’s 5.5%. Despite the high debt load of $5.4 billion against a market capitalization of $6.7 billion (a Debt-to-Equity Ratio of 81.6%), analysts project a substantial upside for the stock, with an average price estimate of $188, indicating a 70% potential increase. However, investors should consider risks associated with a historically high debt level and a slower growth outlook for its oncology portfolio.
