Published on : Oct 09, 2015
The market shares of the pharma company Jazz Pharmaceuticals have dropped by a third in this year, from US$195 to US$133, mainly due to the worries that are also troubling the overall health-care sector as well. The volatility that has catapulted the global healthcare market has also taken a toll on the market conditions of this company, which was the best performer since 2011. Public uproar over some companies increasing drug prices by double and triple their earlier prices is also a reason that's hurting the pharmaceutical sector.
If we have a closer look at the current state of this specialty pharmaceutical company, it can be observed that the drop in market shares of the company can be an opportunity for getting a faster growth at a relatively reasonable price.
The Ireland based company became popular when it launched Xyrem, a medicine for narcolepsy or daytime sleepiness. The sales of this drug continued to rise at a sharp rate, and were up 30% in only the second quarter of its launch, generating nearly 70% of the overall revenues. Corporate results were also strong over the past seven years and the revenues saw a rise of an average of 50% and earnings per share increased 40% annually.
With 19 Xyrem patents that will expire between 2019 and 2033, and many drugs in pipeline, the growth of the company should move along a good trajectory. A late stage drug investigation which is now underway could also extend Xyrem to a wider audience. Defibrotide, another drug from the company targeted for people with obstruction of small veins in liver, having already approved in Europe, is being tested in the U.S.
The circumstances are all good for the company, but most of its fortunes depend mainly on the sales of Xyrem. The risk, however, would continue to lower down as the company will bring in new drug in the market and broaden its portfolio to include drugs in oncology and hematology.