What Happened?
Shares of biopharma company Jazz Pharmaceuticals (NASDAQ: JAZZ) jumped 4.8% in the afternoon session after the company received accelerated approval from the U.S. Food and Drug Administration (FDA) for Modeyso, its new treatment for a rare brain tumor.
The drug, known as Modeyso, was approved as the first and only therapy for patients aged one year and older with a progressive and aggressive brain tumor called diffuse midline glioma. The agency's decision was based on clinical studies where the treatment demonstrated a 22% overall response rate. This green light was an accelerated approval, which meant continued market access depended on positive results from an ongoing confirmatory trial. The positive development appeared to outweigh a weaker-than-expected earnings report from the previous day, where the company also trimmed its full-year sales outlook.
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What Is The Market Telling Us
Jazz Pharmaceuticals’s shares are somewhat volatile and have had 11 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Jazz Pharmaceuticals is down 9.5% since the beginning of the year, and at $112.03 per share, it is trading 22.3% below its 52-week high of $144.17 from February 2025. Investors who bought $1,000 worth of Jazz Pharmaceuticals’s shares 5 years ago would now be looking at an investment worth $888.56.
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