Jazz target lowered to $135 from $168 at Morgan Stanley

Morgan Stanley analyst David Risinger lowered his multiple on Jazz Pharmaceuticals shares and cut his price target to $135 from $168 given that Xyrem is one year closer to initial generics in 2023 and he is uncertain about Xyrem-related newsflow in 2019. He sees the risk-reward for next-gen Xyrem JZP-258’s Phase3 readout as skewed to the downside, given that he thinks success is unlikely to move shares up and he cannot rule out potential efficacy or safety issues. Risinger also thinks the potential approval of competitor pitolisant could impact investor perception about Xyrem, he noted. He maintains an Equal Weight rating on Jazz shares.
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