RBC Capital increased its price target on Jazz Pharmaceuticals to $277 from $273 while maintaining an Outperform rating, citing the U.S. Food and Drug Administration’s approval of Ziihera for first-line HER2-positive gastroesophageal adenocarcinoma.
The approval covers two regimens: Ziihera combined with Tevimbra and chemotherapy, and Ziihera with chemotherapy alone, applicable to all HER2-positive patients regardless of PD-L1 status. RBC adjusted its probability-of-success model to 100% following the clearance of both doublet and triplet regimens.
Needham raised its target to $310 with a Buy rating, while Deutsche Bank increased its target to $300, also maintaining a Buy. Canaccord Genuity reiterated its Buy rating with a $300 target. The stock last traded at $252.82, up 108% over the past year.
RBC estimates the exclusion of IHC 2+/ISH+ patients in the doublet regimen, along with a diarrhea warning, affects roughly 15% of patients who remain eligible for the triplet regimen. Eleven analysts have revised earnings estimates upward for the upcoming period.
