Chimerix deal represents ‘clear strategic fit’ for Jazz, says Stifel

Stifel reiterated a Buy rating and $230 price target on Jazz Pharmaceuticals (JAZZ) after the company agreed to acquire Chimerix (CMRX). The firm sees the “very manageable” consideration of $935M as a direct strategic tuck into Jazz’s oncology platform with excellent commercial leverage with its pediatric presence for near-term launch. Notably, the transaction is fully funded through existing cash and potentially comes with a Priority Review Voucher due to its Rare Pediatric Disease designation, the analyst tells investors in a research note. The firm added that, if approved, dordaviprone is expected to become standard-of-care for this rare form of diffuse glioma and should rapidly bring a diversifying revenue stream to Jazz’s growing oncology presence.