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Jazz Pharmaceuticals: Long-Term Prospects Jazz Up A Modest Upside (NASDAQ:JAZZ)

Jazz Pharmaceuticals: Long-Term Prospects Jazz Up A Modest Upside (NASDAQ:JAZZ)

Investment Thesis

Jazz Pharmaceuticals plc (JAZZ) has enjoyed an extended rally thanks to headline-grabbing announcements in the past few months. Once lifted in August, the company’s revenue outlook needs a further upgrade per our analysis of historical data in light of ongoing product launches. JAZZ’s liquidity is robust enough to weather the effect of declining cash flows even as the management expects the margins to come under pressure amid the ongoing product launches and clinical trials.

As generics make the market entry rivaling the company’s leading drug Xyrem, a new product launch is underway, targeting a swift conversion of the existing patient base. Meanwhile, moves are afoot to bolster the oncology franchise highlighting the attempts at revenue diversification. Our EBITDA forecasts for the year beat the consensus estimates, and with the current forward EV/EBITDA multiple, it indicates a modest undervaluation. Yet, despite a series of catalysts ahead, JAZZ continues to underperform the market on a YTD (year-to-date) basis, encouraging us to raise its outlook to a ‘Buy’.

Jazz_Pharmaceuticals_Xyrem_2Source: emedz.net

Catalysts Spark a Rally

After the emerging competition and a failed late-stage clinical trial darkened its prospects in the first few months of the year, Jazz Pharmaceuticals has made a remarkable turnaround lately, forcing the management to roll back the dreary outlook they set earlier. Thanks to a series of catalysts and the upgraded guidance, the stock had made a swift comeback gaining ~41.3% in the past six months, outperforming the ~26.1% rise in the NBI (NASDAQ Biotechnology Index). In June, FDA signed off JAZZ’s Zepzelca (lurbinectedin) for adults with relapsed metastatic SCLC (small cell lung cancer) on or after platinum-based chemotherapy. One of the two types of lung cancers, SCLC has a poorer prognosis compared to NSCLC (non-small cell lung cancer), highlighting the importance of the development for an indication

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IMF upgrades economic forecast but warns of long-term coronavirus damage

IMF upgrades economic forecast but warns of long-term coronavirus damage

The global economy may take a smaller hit from the coronavirus recession in 2020 than was once expected but faces significant long-term challenges that will likely widen inequality, the International Monetary Fund (IMF) said Tuesday.

In a set of new projections, the IMF slightly upgraded its outlook on the 2020 economic decline while warning that a lack of further fiscal and monetary support could cause deeper damage to the global economy.

The IMF now expects global growth in 2020 to fall to -4.4 percent, 0.5 percentage points better than its June projection of -4.9 percent. The international lender expects growth to rebound to 5.2 percent in 2021, down 0.2 percentage points from a June a projection of 5.4 percent.

“As a result of eased lockdowns and the rapid deployment of policy support at an unprecedented scale by central banks and governments around the world, the global economy is coming back from the depths of its collapse in the first half of this year,” wrote IMF chief economist Gita Gopinath in a Tuesday article

“This crisis is however far from over,” she continued. “The ascent out of this calamity is likely to be long, uneven, and highly uncertain.”

The global economy has gradually rebounded from the onset of the coronavirus pandemic earlier this year, which caused the steepest economic decline since the Great Depression.

Employment and global economic activity has begun to recover as countries adapt to life amid COVID-19, which has claimed more than 1 million lives globally and more than 215,000 in the U.S.

Gopinath wrote that “signs of a stronger recovery” in the third quarter warranted the IMF’s slight upgrade to its forecast. But she warned that the total economic blow of the pandemic would linger for years and restrain the recovery for long after 2020.

“This

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The pandemic has shown that long-term financial security is a necessity, not a luxury

The pandemic has shown that long-term financial security is a necessity, not a luxury

  • With the continuing economic uncertainty, now is the time to focus on how best to maneuver through the many financial ups and downs that impact your financial goals.
  • The Covid-19 pandemic has shown us that long-term financial security is a necessity, not a luxury.
  • Kevin R. Keller, chief executive officer of the CFP Board, shares how to find the right advisor.



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As of mid-September, there were 26.5 million Americans on some form of unemployment assistance.  Many families and individuals have been forced to deal with unexpected health costs and uncertain education and day care situations in their communities.

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Many Americans are facing a grave threat of financial insecurity, having lost either their employment or income, or both.

The tragic situation facing many Americans holds an important financial lesson. The Covid-19 pandemic has shown us that long-term financial security is a necessity, not a luxury. And that means competent and ethical financial planning must be a priority.

More from Advisor Insight:

Here’s how to vet a prospective financial advisor

Advisors make sure clients don’t outlive retirement savings

It’s a bad idea to hide this info from your advisor

When the financial markets plummeted in March and early April, some financial planners began to see an increase in demand for their advice. An April survey conducted by Nationwide found that 1 in 4 Americans surveyed had sought the help of a financial advisor for the first time ever due to the pandemic’s impact. And 64% of advisors surveyed by CFP Board in April said they believe that more Americans will seek professional financial advice in the wake of Covid-19.

With the continuing economic uncertainty, now is the time to focus on how best to maneuver through the financial ups, downs and sometimes sideways paths that today’s

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