Piper Jaffray: Jazz Pharmaceuticals Not Expecting Payer Pushback In Wake Of Price Hike

Piper Jaffray released a research report on Jazz Pharmaceuticals JAZZ announcing they are not expecting payer pushback in the wake of most recent Xyrem price hike. In its report, Jazz Pharmaceuticals writes that, “Beginning today, Jazz is implementing a near 20% price increase for narcolepsy treatment Xyrem. The timing and magnitude of the price hike was modestly ahead of our expectations. Even with the higher price point, the product is still priced on an annual basis more cheaply than a number of orphan products (and is even cheaper than a number of non-orphan or marginally orphan products such as disease modifiers for multiple sclerosis (MS)). With continued strong volume growth and now the higher price, we believe sales are likely to exceed current 2011 guidance of $215M-$225M.” Piper Jaffray maintains its Overweight rating and $51 price target. It closed yesterday at $42.89 and is currently trading down $0.54.