BofA Securities raises Jazz Pharmaceuticals stock price target on Modeyso potential

Published 14/08/2025, 12:06
BofA Securities raises Jazz Pharmaceuticals stock price target on Modeyso potential

Investing.com - BofA Securities has raised its price target on Jazz Pharmaceuticals (NASDAQ:JAZZ) to $225.00 from $217.00 while maintaining a Buy rating ahead of the company’s upcoming investor webcast. The new target aligns with the broader analyst consensus, with targets ranging from $145 to $230. According to InvestingPro data, the company maintains an impressive "GREAT" financial health score.

The price target increase comes as BofA Securities incorporates the recently approved drug Modeyso into its financial model. Modeyso was approved for the treatment of an ultra-rare brain tumor. The company’s strong gross profit margin of 92% suggests significant potential for new drug commercialization.

BofA Securities conducted discussions with key opinion leaders who provided positive feedback on Modeyso’s uptake and the probability of success for the confirmatory Phase 3 trial, known as ACTION.

The firm projects Modeyso could add $100 million to Jazz Pharmaceuticals’ 2026 revenue from the U.S. market alone, with potential for upside. If the confirmatory ACTION trial succeeds, peak U.S. sales could exceed $400 million, not including international markets.

Jazz Pharmaceuticals is scheduled to host an investor webcast on August 27, 2025, where updates on Modeyso’s pricing and ex-U.S. regulatory strategy are expected.

In other recent news, Jazz Pharmaceuticals reported second-quarter earnings that did not meet analyst expectations. The company posted an adjusted loss of $8.25 per share, while analysts had projected a smaller loss of $7.62 per share. Despite this, Jazz Pharmaceuticals slightly exceeded revenue expectations, reporting $1.05 billion compared to the consensus estimate of $1.04 billion, marking a 2.1% increase from the previous year. Additionally, the U.S. Food and Drug Administration granted accelerated approval for Modeyso (dordaviprone), a new treatment for diffuse midline glioma, an aggressive brain tumor affecting around 2,000 people annually in the U.S. This approval marks a significant development as Modeyso becomes the first FDA-approved treatment for this rare condition. The medication is expected to be available for commercial distribution in the coming weeks. These recent developments highlight significant milestones for Jazz Pharmaceuticals in both financial performance and medical advancements.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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