The market consensus moves tab in Jazz Pharmaceuticals, the partner of Pharmamar for the commercialization of Zepzelca in the United States and Canada, after the presentation of the results until September.
The investment entities that follow the company of Irish origin they have only recorded target price cuts for the next 12 months, as reflected by the panel of experts that compiles Bloomberg.
The largest reduction, of 4 percent, has been borne by Piper Sandler which now sees Jazz Pharmaceuticals stocks at $ 209 going one year. In addition, it is the only firm that, despite the reduction, remains above the average target price.
Cuts below target price
EThe rest of the cuts are below the average set at $ 205.89. Truist Securities has cut it 2.7 percent, to $ 180, and BMO Capital Markets and JP Morgan they have done the same by 1.5 percent, up to 202 dollars both.
Following these sales, Jazz Pharmaceuticals offers a 55 percent appreciation potential. The value falls more than 15 percent in the year, but 94.7 percent of the consensus urges to “buy” titles of the biopharmaceutical without reporting any recommendation to sell ”.
Jazz Pharmaceuticals closed the first nine months of the year with a turnover increase of 29.4 percent, to 2,197 million dollars thanks to its flagship drug, Xywav, to treat cataplexy and reduce drowsiness due to narcolepsy, but Zepzelca also helped.
Record quarter for Zepzelca
The drug developed by Pharmamar and sold by Jazz in the United States generated revenues in the third quarter of sales of $ 71.7 million, 94 percent more than in the same period last year when it began to be sold at the end of July.
Total, $ 182 million are billed by the Irish from the start of sales of the product against small cell lung cancer and awaiting full authorization for sale in the United States.
Jazz Pharmaceuticals reported a nine-month loss of $ 294.3 million from the purchase of GW Pharmaceuticals, a pharmaceutical company dedicated to medicinal cannabis, for which it must pay 3,000 million.
Price reductions at Pharmamar of 23 percent
Excluding this impact, profits were some $ 300 million lower than a year ago, to $ 475.3 million, but Zepzelca’s record quarterly sales are a bottle of oxygen for Pharmamar.
Despite this, and as has happened to their partner, analysts chose to cut target prices, estimating that sales and royalties from Zepezelca were below estimates and that final FDA approval will be delayed until at least the end of 2022.
The biggest blow settled him Oddo BHF, with a reduction of 23 percent, to 73.80 euros, followed by 11 percent of Intermoney, up to 90 euros per share, and 7 percent of Alantra, up to 64.50 euros being the lowest price of the entire consensus.
The three main discounts place Pharmamar below the average target price for the next 12 months, set at 94.30 euros. This level offers a 54.5 percent upside potential, in a year in which Pharmamar lost about 15 percent on the IBEX 35.
The recommendations of the experts are not as positive as in Jazz Pharmaceuticals, since andl 50 percent of analysts advise “keeping” the securities in the portfolio, by 37.5 percent who urge to “buy” and 12.5 percent who prefer to “sell” the positions, according to the panel of experts from Bloomberg.