Jazz Pharmaceuticals (JAZZ) could see long-term value from Ziihera's pursuit of additional indications such as breast cancer, colorectal and lung, as the therapy moves beyond gastroesophageal adenocarcinoma, UBS said in a Friday note.

Ziihera is relatively de-risked in first-line colorectal cancer treatment given its established potency and encouraging proof of concept data, according to the note. UBS said that the current standard of care leaves room for improvement and that there are no approved HER2-targeted therapies in first-line metastatic colorectal cancer.

Regarding non-small cell lung cancer, UBS said that while there is limited proof of concept data for Ziihera, preliminary data points toward efficacy.

UBS now expects peak Ziihera sales of $3.8 billion from $3.1 billion prior, layering in revenue from colorectal cancer, non-small cell lung cancer and raising gastroesophageal adenocarcinoma probability of success to 100% from 95% previously.

UBS raised its price target to $337 from $315 and maintained its buy rating.

JAZZ shares were up 2.3% in Friday afternoon trading.

Price: 245.98, Change: +5.50, Percent Change: +2.29