Jazz Pharmaceuticals (JAZZ) has had a rough couple of weeks. The drugmaker closed at $218.42 on Friday, Oct. 9, down about 11% over the past month and roughly 7% over the last five trading days.
The drop has been quite frustrating for investors because many of them watched JAZZ climb for most of 2026. Although after the pullback, the stock is still up about 26% year to date.
On Oct. 9, Jim Cramer gave JAZZ a thumbs-up during the “Mad Money” Lightning Round. If you’re trying to decide whether now is a good time to buy JAZZ, it’s worth reading what Cramer has to say.
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What Cramer said about Jazz Pharmaceuticals on “Mad Money”
When a caller asked about JAZZ, Cramer said, “You’re starting to go into a very speculative situation where they actually do make money, though,” according to CNBC. “I’m going to say yes to Jazz Pharmaceuticals.”
Jazz already has approved medicines it sells, and the company profits from those sales. It has a price-to-earnings ratio of about 14.9, which is cheap for a drugmaker that sells cancer drugs and is already profitable.
Where Jazz actually makes its money
Jazz Pharmaceuticals has three main products that generate revenue. These products are Xywav for narcolepsy, Epidiolex for rare forms of epilepsy, and Ziihera, which is a new cancer therapy drug.
Out of Jazz’s record second-quarter revenue of $1.2 billion, Xywav brought in $471.2 million, Epidiolex generated $292.1 million, and Ziihera brought in $15.4 million.
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Xywav alone accounted for approximately 525 net patient adds, according to the company’s SEC release, bringing its total active patients to approximately 17,125. Epidiolex sales also increased by 16% compared to the year before.
CEO Renee Gala told investors that the quarter “highlights strong execution and momentum across the business,” and said Jazz is “focused on long-term growth as we prepare to launch Ziihera.”
The FDA approved Ziihera for HER2-positive stomach and gastroesophageal cancer therapy in late August. After the approval, Jazz raised its peak sales estimate for the drug from more than $2 billion to $3 billion to $5 billion.
What investors should consider before jumping in
Wall Street analysts are already updating their opinions on the stock after Ziihera’s introduction.
Needham raised its price target to $310, Deutsche Bank and Canaccord Genuity both raised theirs to $300, and RBC Capital raised its price target from $277 to $299. All those targets are well above where the stock trades today.
However, even with analysts backing the stock, investors should still watch for some risks.
Before the company can reach the peak sales it expects for Ziihera, doctors need to start using the drug, and insurers also have to cover it. The company also faces competition in HER2 cancer treatments, so Ziihera has to prove itself.
Cramer’s “yes” rests on execution. Jazz now has to convert the Aug. 25 Ziihera approval into prescriptions and payer coverage before the stock can grow into analyst targets that sit $60 to $90 above the Oct. 9 close.
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