Jazz Pharmaceuticals stock rises as Stifel reiterates Buy rating on Modeyso launch

Investing.com - Jazz Pharmaceuticals (NASDAQ:JAZZ) has officially launched Modeyso/dordaviprone for recurrent H3 K27M-mutant diffuse midline glioma (DMG), a rare and aggressive form of pediatric brain tumor, according to Stifel. The $7.55 billion market cap company, currently trading at $124.43, is showing signs of being undervalued according to InvestingPro Fair Value analysis.

Stifel reiterated a Buy rating and $230.00 price target on Jazz Pharmaceuticals , noting that Modeyso is the first approved treatment for this condition and likely to become the standard of care given the aggressive nature of the disease and lack of alternative options. This aligns with broader analyst sentiment, as 10 analysts have recently revised their earnings estimates upward, and the company maintains impressive gross profit margins of 92%.

The drug, which has a dual mechanism of action as a DRD2 antagonist and ClpP activator, has been priced at ultra-orphan levels of $32,000 per bottle, with Stifel modeling sales of approximately $560 million solely in recurrent patients.

Jazz Pharmaceuticals is leveraging its high-touch sales expertise and existing rare pediatric oncology infrastructure to rapidly build access and adoption, with expectations for relatively rapid penetration and potential to expand through longer treatment duration in the front-line setting.

Stifel views Modeyso as another avenue of growth in oncology for Jazz, supplementing what will be its flagship driver, Ziihera, in HER2+ cancers.

In other recent news, Jazz Pharmaceuticals disclosed its second-quarter earnings for 2025, which did not meet market expectations. The company reported a loss per share of -8.25, which was wider than the anticipated -7.62. Despite this, Jazz Pharmaceuticals’ revenue slightly exceeded forecasts, reaching $1.05 billion. The earnings miss was a significant development for investors, as it highlighted challenges the company faces in meeting financial projections. Although the revenue figures were somewhat positive, they were insufficient to offset the larger-than-expected loss per share. These earnings results were a key focus for analysts and investors alike. The company’s financial performance in this quarter has drawn considerable attention from market participants.

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