While JAZZ Pharmaceuticals JAZZ may not be a typical cannabis stock, it is the only company to market an FDA-approved drug that contains a purified drug substance derived from marijuana.
The company entered the medical cannabis space after acquiring GW Pharmaceuticals in 2021, adding two cannabidiol (CBD) drugs—Epidiolex and Sativex—to its portfolio. As the market for medical cannabis evolves and regulatory clarity improves, Jazz's early entry and growing footprint in this niche will position it as a serious contender for long-term gains.
Let’s delve into the company’s strengths and weaknesses to better understand whether the stock deserves a place in your portfolio in 2025.
Epidiolex Is on Fire—And So Is Jazz’s Growth Potential
Jazz’s involvement in the cannabis sector centers on Epidiolex—an oral solution approved for treating seizures associated with Lennox-Gastaut syndrome, Dravet syndrome and tuberous sclerosis complex. The drug was originally developed by GW Pharmaceuticals, a pioneer in cannabis-derived therapies, which Jazz acquired in a landmark $7.2 billion deal.
This addition has not only strengthened the company’s neuroscience portfolio but also reduced its reliance on the oxybate franchise. Jazz added more than $972 million from Epidiolex sales in 2024, which accounted for a quarter of its net product revenues. Sales of the drug rose 15% over the year-ago period, driven by expanding global launches and a growing prescriber base. We expect the drug to achieve blockbuster status in 2025.
The global medical cannabis market is projected to surpass the $130 billion mark by the end of 2032, primarily driven by the increasing acceptance of cannabis for therapeutic purposes. As one of the few established pharmaceutical firms with an FDA-approved cannabis-based product, Jazz has a unique advantage.
Jazz Isn’t Just Riding the Cannabis Wave
While cannabis may be a focal point, Jazz isn’t a one-trick pony. The company has built a diverse product lineup that spans neuroscience and oncology.
Xywav is approved to treat three conditions, including cataplexy and excessive daytime sleepiness (EDS) in patients with narcolepsy. While Jazz also markets Xyrem, which is approved for the same indications, Xywav offers a significant advantage as a low-sodium formulation. Unlike Xyrem, it does not carry the warnings and precautions associated with high sodium intake. This makes Xywav the only approved oxybate therapy without such precautions. Xywav is also the only FDA-approved treatment for the full spectrum of idiopathic hypersomnia (IH).
Jazz has five marketed products in the oncology space—Defitelio, Vyxeos, Zepzelca, Rylaze/Enrylaze and Ziihera—which accounted for 29% of its 2024 product revenues. Apart from bringing in additional revenues, these products diversify Jazz’s marketed portfolio. The company is also focused on expanding the labels of these marketed drugs.
Jazz recently announced its intent to buy clinical-stage biotech Chimerix CMRX for $935 million. If this deal goes through, Jazz will add Chimerix’s lead candidate, dordaviprone, which is nearing approval from the FDA (PDUFA date Aug. 18, 2025) for certain glioma (brain tumor) patients. The company expects to complete the Chimerix transaction in the second quarter of 2025.
Speed Bumps on Jazz’s Innovation Journey
Jazz has not eluded its share of pipeline setbacks. Earlier this year, it decided to stop developing suvecaltamide across both essential tremors and Parkinson's disease tremors after the drug failed to achieve the primary and key secondary endpoints in separate mid-stage studies. It is currently exploring options for the drug’s future.
In December 2023, Jazz announced similar disappointing results from a mid-stage study on its FAAH inhibitor, JPZ150, in adults with post-traumatic stress disorder (PTSD).
JAZZ Stock’s Performance & Estimates
Shares of JAZZ Pharmaceuticals have lost 5% in the past year compared with the industry’s 12% decline, as seen in the chart below. Given the current macro environment, this performance is significantly better than that of a pure-play cannabis stock, Tilray Brands TLRY, which has crashed 72% over the same period.
Zacks Investment Research
Image Source: Zacks Investment Research
Estimates for JAZZ’s 2025 earnings per share (EPS) have risen from $22.11 to $23.33 in the last 60 days. During the same timeframe, EPS estimates for 2026 have increased from $23.23 to $23.35. In contrast, Tilray’s loss estimates for 2025 and 2026 have widened significantly in the last 60 days.
Zacks Investment Research
Image Source: Zacks Investment Research
Reaffirming Confidence in JAZZ Pharmaceuticals
Jazz Pharmaceuticals continues to strengthen its position in the medical cannabis space with solid Epidiolex sales and a growing global footprint. Backed by a diversified portfolio in neuroscience and oncology, rising EPS estimates, and a robust cash reserve of $3.0 billion at the end of 2024, this Zacks Rank #2 (Buy) stock offers a compelling mix of stability and growth potential. In comparison, Tilray Brand carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Despite pipeline setbacks, its strategic acquisitions and FDA-approved therapies make it a resilient player worth holding in 2025 and beyond.
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