Small-Cap JAZZ Pharma Jumps Over 50% in Price Gain on Phase III Trial Progress

We've covered this stock before, and recently I might add, and noted that it had significant investor potential because of its place in the pharmaceutical trail phase chains with a number of its products. Well the news today that its pain reduction medicine for fibromyalgia patients had cleared some late-stage approval tests sent the stock over a 50% gain picking up $1.65.

The stock now trades on the Nasdaq in the $5 range on today's news. Jazz Pharmaceuticals (JAZZ) http://www.jazzpharmaceuticals.com/ average daily 3-Month trading volume is 1,323,560 shares. Share volume today is nearly ten times that average. Though it will shift today, the best estimate at the time of this article is that Small-Cap JAZZ has a market cap of $142 million.

A TWO DAY CHART OF JAZZ

The late-stage study results confirm prior late-stage data for JZP-6, which contains the same active ingredient found in Xyrem. That drug is already approved as a sleep disorder treatment.

JAZZ will now ask the Food and Drug Administration to approve the drug as a fibromyalgia treatment by the end of 2009. Fibromyalgia is a pain disorder.

And for all of you that are new to this stock, JAZZ said preliminary data from a second late-stage trial of its experimental pain drug Xyrem, showed that the study met its main goal. JAZZ is a specialty pharmaceutical company that develops and commercializes products for neurology and psychiatry primarily in the United States.

JAZZ's primary products include Xyrem for the treatment of excessive daytime sleepiness and cataplexy in patients with narcolepsy; and Luvox CR for obsessive compulsive disorder and social anxiety disorder.

JAZZ has a 52-week high of $8.95 set on 06-25-08 and a 52-week low of $0.52 set on 04-22-09. At $5 is far, far beyond both its 50-day and 200-day moving average with trailing twelve month revenues of $$74.96 million. It shares out versus float ratio is a smidge lop-sided, but isn't of concern, although I would like to see a few more shares in the float.