Jazz Reports Good Second Quarter Plus New Drug Launches; Shares Trading Below Our $135 FVE

No-moat Jazz’s solid second-quarter results reported on Aug. 4 follow the July 22 news of the regulatory approval of Xywav, a low-sodium version of the company’s flagship product for sleep disorders, Xyrem, and the June 15 news of the regulatory approval of Zepzelca for metastatic small-cell lung cancer. This recent cascade of good news for Jazz highlights the potential of Jazz’s portfolio in sleep disorders and hematology/oncology. After considering the challenges that lie ahead with Xyrem generics, we believe shares are trading at a wide margin of safety to our maintained $135 fair value estimate, and investors should wake up and take a look at Jazz.