Hedge funds cut NFLX, keep big bets on MSFT, AMZN, add NVDA
DUBLIN - Jazz Pharmaceuticals plc (NASDAQ: JAZZ), a $6.66 billion pharmaceutical company with impressive gross profit margins of 92%, reported positive outcomes from the Phase 3 IMforte study, showing that Zepzelca® (lurbinectedin) combined with atezolizumab significantly improved survival rates in extensive-stage small cell lung cancer (ES-SCLC) patients. According to InvestingPro data, the company maintains healthy financials with annual revenue of $4.06 billion. The trial met its primary endpoints, with the combination therapy reducing the risk of disease progression or death by 46% and extending median overall survival to 13.2 months, compared to 10.6 months for atezolizumab alone.
The IMforte study is the first global Phase 3 trial to show clinically meaningful benefits in both progression-free and overall survival in the first-line maintenance setting for ES-SCLC. The results were presented today at the American Society of Clinical Oncology (ASCO) Annual Meeting in Chicago and concurrently published in The Lancet.
Patients who did not experience disease progression following induction therapy with carboplatin, etoposide, and atezolizumab were randomized to receive either the combination of Zepzelca and atezolizumab or atezolizumab alone. From the point of randomization, the median progression-free survival (PFS) was 5.4 months for the combination therapy versus 2.1 months for the monotherapy.
The treatment was generally well-tolerated, with no new safety concerns identified. The combination therapy’s maintenance treatment duration was twice as long as the monotherapy, with a median of 4.2 months versus 2.1 months, respectively.
According to Dr. Luis Paz-Ares, principal investigator of the IMforte trial, these results offer a potentially practice-changing option that could improve survival for patients with a high unmet need. Dr. Stephen V. Liu, an IMforte trial investigator, highlighted the significance of the combination treatment approach in extending the survival benefit for ES-SCLC patients who complete induction therapy without progression. Jazz Pharmaceuticals’ strong financial position, evidenced by a "GREAT" financial health score from InvestingPro and a robust current ratio of 3.38, suggests the company is well-positioned to advance this treatment.
Jazz Pharmaceuticals plans to discuss these findings with the U.S. Food and Drug Administration (FDA) to expedite the market introduction of this new indication. An investor webcast will be held on June 10 to review the Zepzelca data, featuring commentary from a leading small cell lung cancer expert and company senior management. Trading at a P/E ratio of 13.87, analysis suggests the stock is currently undervalued. For deeper insights into Jazz Pharmaceuticals’ financial health and growth potential, investors can access the comprehensive Pro Research Report available on InvestingPro, which offers expert analysis and additional ProTips about the company’s performance and outlook.
This article is based on a press release statement from Jazz Pharmaceuticals plc.
In other recent news, Jazz Pharmaceuticals reported first-quarter earnings that significantly missed analyst expectations. The company posted adjusted earnings per share of $1.68, falling short of the anticipated $4.81, while revenue came in at $897.8 million, below the forecasted $983.9 million. This earnings miss was largely attributed to a $172 million expense related to settlements in Xyrem antitrust litigation. Consequently, Jazz Pharmaceuticals has slashed its full-year profit outlook, adjusting its EPS guidance to a range of $4.00 to $5.60, down from the previous $22.50 to $24.00. Despite this, the company maintained its revenue forecast of $4.15 billion to $4.40 billion. In other developments, Jazz Pharmaceuticals completed its acquisition of Chimerix, adding the late-stage pipeline candidate dordaviprone for a rare brain tumor. Additionally, Jazz Pharmaceuticals shared promising Phase 2 trial results for its drug Ziihera in treating advanced gastroesophageal adenocarcinoma, showing a median overall survival of 36.5 months. The company anticipates top-line results from the Phase 3 HERIZON-GEA-01 trial later in the year.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.