Is Now The Time to Buy Jazz Pharmaceuticals Stock?
Jazz Pharmaceuticals (NASDAQ: JAZZ) was out of tune with the biotech investment community -- not to mention its own shareholders -- for much of last year. Indeed, its stock has lagged behind the S&P 500, with an annual return of 6.8% compared to the index's 18% gain.
On Feb. 3, the company decided to turn up the music with the announcement of a $7.2 billion acquisition of medical cannabis company GW Pharmaceuticals (NASDAQ: GWPH). The deal consists of mostly cash, debt, and about $700 million in newly issued Jazz Pharmaceuticals stock. Considering the company only has a market cap of $8.4 billion, the acquisition is undoubtedly an ambitious endeavor. Will it be enough to turn around the ailing biotech?
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Source Fool.com