NEW YORK: Is a pharmaceutical company whose biggest-selling drug is considered as dangerous as heroin or LSD a good investment?

Jazz Pharmaceuticals, along with the private equity firm Kohlberg Kravis Roberts and some of Wall Streets most prestigious investment banks, is hoping investors think so.

Jazz, based in Palo Alto, California, has filed to sell as much as $180 million in stock Thursday. Its main product is gamma hydroxybutyrate, or GHB, a fast-acting anesthetic with a history of use in date rape and serious risks of overdose, including coma and death. Jazz sells it under the brand name Xyrem to treat narcolepsy.

The U.S. Drug Enforcement Administration lists GHB as a Schedule I drug, the most dangerous kind, in the same category as heroin. But the Food Drug Administration has approved Xyrem for narcolepsy, and when dispensed by prescription the drug can be used legally.

The European Commission has approved Xyrem for the treatment of narcolepsy with cataplexy in adult patients.

Because of its risks, Xyrem can be distributed only under very strict rules, and Jazzs promotion of it is currently the subject of a U.S. criminal case in New York that has resulted in one felony guilty plea by a former Jazz employee. The narcolepsy market is small, and Xyrems sales were just $29 million in 2006.

Meanwhile, Jazz posted a loss of $82 million last year and has lost almost $200 million since it was founded in 2003. Its auditors have warned that its losses raise “substantial doubt about our ability to continue as a going concern,” according to the offering prospectus Jazz filed with the Securities and Exchange Commission.

In plain English, Jazz, which had $67 million in cash as of March 31, is running out of money, and if it does not get more it could go broke as early as the end of this year.

Jazz is hoping to solve that problem by selling as much as 6.9 million shares to the public at $24 to $26 a share. The offering, which values Jazz at about $600 million, could be completed as early as Thursday. Morgan Stanley, Lehman Brothers and Credit Suisse are leading the deal.

Aside from Jazz itself, the biggest winner in the public offering would be Kohlberg Kravis and other private equity firms. Since 2003, they have sunk $265 million into Jazz. If the company cannot go public, they will have to choose between putting more money up or potentially losing their entire investment.

Matt Fust, Jazzs chief financial officer, declined to comment about the offering or Jazzs prospects. A spokeswoman for Kohlberg said the firm could not comment because the offering was imminent.

Jazz hopes to vastly expand Xyrems potential market by winning approval to promote it for fibromyalgia, a vague and poorly understood pain disorder whose symptoms are often treated with antidepressants. Jazz is conducting two late-stage clinical trials to prove that Xyrem reduces the pain of fibromyalgia, with results expected in the one trial in the second half of 2008.

In an earlier trial, about 30 percent of people who took Xyrem reported improvement in their fibromyalgia symptoms, compared to 13 percent on placebo. Whether that figure will be enough to convince regulators to approve Xyrem, whose label warns that abuse of GHB can cause “seizures, respiratory depression and profound decreases in level of consciousness,” is not clear.

In addition, much bigger drug companies, including Pfizer and Forest Laboratories, are also researching fibromyalgia treatments and have medicines further along in development. Meanwhile, Jazz is still trying to finalize a settlement in the criminal case in New York.

Action Insight | Written by ActionForex.com | May 22 07 14:07 GMT |
Forex Mid-Day Technical Report Dollar Consolidates as Paulson Meets Chinese Officials

Without any catalyst, dollar turns sideway against majors as US Treasury Secretary Henry Paulson kicks off the Strategic Economic Dialogue (SED) meetings between the US and China in Washington, to reduce a record trade gap between the two countries. Paulson emphasizes that the talks must yield results to counter a growing “anti-China” sentiment. The Chinese delegation is led by Vice Premier Wu Yi who commented in the start of the meeting that China should firmly oppose trade protectionism. Closing statements will be released tomorrow.

Euro was unmoved by solid ZEW economic sentiments released today. German Investor sentiment continued to rise, with ZEW index for May rising from 16.5 to 24.0. Both the key expectations and current conditions gauges improved, suggesting that concerns over the lasting impact of January’s VAT hike have been all but removed. Other news saw the United Arab Emirates said it will maintain its peg to the dollar, scotching speculation of a revaluation. EUR/USD

Daily Pivots: (S1) 1.3424; (P) 1.3478; (R1) 1.3519; http://www.actionforex.com/forex_analysis_and_forecasts/pivot_points/pivot_points_summary_200603205734/

EUR/USD continues to trade sideway above 1.3435, being supported by 55 days EMA (now at 1.3435). As discussed before, the fall from 1.3609 is still in force as long as 1.3525 resistance holds and further decline is expected to follow towards 100% projection of 1.3681 to 1.3461 from 1.3609 at 1.3389. On the upside, above 1.3525 will indicate lengthier consolidation might follow first. But still, it will take a strong rebound to above 1.3609 resistance to confirm that decline from 1.3681 has completed. Otherwise, short term risk remains on the downside.

In the bigger picture, risk of 1.3681 being an important medium term top continues to increase. As discussed before, medium term up trend from 1.1639 is interpreted as having first move completed with three waves up to 1.2978, subsequent sideway consolidation completed at 1.2483. Rise from 1.2483 is treated as resumption of the whole up trend from 1.1639. With such interpretation, we’d expect risk of medium term reversal to increase significantly after EUR/USD met resistance zone between 1.3668 and 100% projection of 1.1639 to 1.2978 from 1.2483 at 1.3822. Hence, focus is now on reversal signals.

On the downside, break of the short term rising channel support is already a warning that the rise from 1.2865 has completed. Decisive break of 1.3364 cluster support (38.2% retracement of 1.2865 to 1.3681 at 1.3369) will confirm such case. More importantly, with bearish divergence condition in daily MACD and RSI, this will warn that the whole rally from 1.2483 has also completed, and, so is the whole up trend from 1.1639. Focus will then be back to medium term rising channel support (now at 1.3032).

GBP/USD

Daily Pivots: (S1) 1.9673; (P) 1.9715; (R1) 1.9753; http://www.actionforex.com/forex_analysis_and_forecasts/pivot_points/pivot_points_summary_200603205734/

Cable’s consolidation from 1.9676 continues into US session. Outlook remains unchanged. Further decline is expected to follow as long as 1.9778 resistance holds and next downside target will be support zone of medium term rising channel support (now at 1.9551) and 1.9545 cluster support (61.8% retracement of 1.9183 to 2.0132 at 1.9546). Above 1.9778 will turn intraday outlook consolidative again. But still, break of 1.9874 is needed to indicate fall from 2.0132 has completed and bring strong rebound. Otherwise, short term risk remains on the downside.

In the bigger picture, risk of medium term reversal continues to increase. Firstly, the whole up trend from 1.7047 is not clearly impulsive. One interpretation is that rally from 1.7047 ended with three waves up to 1.9024. Subsequent correction ended at 1.8090. Rally from 1.8090 has already met mentioned target of 100% projection of 1.7047 to 1.9024 from 1.8090 at 2.0067. Secondly, regardless of the larger trend, rise from 1.8090 can be interpreted as being a five wave sequence with first wave ended at 1.9142, second at 1.8517, third at 1.9913 and fourth at 1.9183. The channeling property supports this interpretation too. In such case, the fifth wave rally from 1.9183 has also met target of 61.8% projection of 1.8517 to 1.9913 from 1.9183 at 2.0046 too. With bearish divergence condition remains in weekly RSI and daily MACD and key 2.0106 resistance (92 high) not decisively taken out, 2.0132 could be the important medium term top already.

On the downside, firm break of the medium term rising channel support (now at 1.9551) will indicate that the whole rally from 1.8090 has completed and add much credence to the case that an important medium term top is already formed and put focus to 1.9183 low. However, sustained trading above mentioned 2.0106 resistance will dampen the above interpretation and indicates that underlying bullishness in cable is much stronger then we thought.

USD/CHF

Daily Pivots: (S1) 1.2268; (P) 1.2298; (R1) 1.2334; http://www.actionforex.com/forex_analysis_and_forecasts/pivot_points/pivot_points_summary_200603205734/

USD/CHF continues to consolidate below 1.2331 into US session. Still, intraday bias remains on the upside as long as 1.2268 support holds, and further rally is expected to be seen to 61.8% retracement of 1.2571 to 1.1993 at 1.2350. Touching of 1.2268 will turn intraday outlook consolidative and bring pull back. But a break below 1.2124 support is needed to indicate rebound from 1.1993 has completed. Otherwise, another rise is still in favor after completing brief consolidation

In the biggest picture, firm break of 1.2282 cluster resistance (50% retracement of 1.2571 to 1.1993 at 1.2282) confirms that fall from 1.2571 has already completed at 1.1993 with bullish convergence condition in daily MACD and RSI. More importantly, this will increase the chance that USD/CHF is about to complete a medium term head and shoulder bottom formation (ls: 1.1919, h: 1.1878, rs: 1.1993). Sustained break of 61.8% retracement at 1.2350 and neckline resistance (1.2768 to 1.2571, now at 1.2355) will add more weight to this case. Stronger rally should then be seen to 1.2571 first and then 1.2768.

However, below 1.2124 support will indicate that rebound from 1.1993 has possible completed and save the case that recent choppy price actions could merely be part of a medium term triangle consolidation. And, down trend from 1.3283 should still resume after completing such consolidation in such case.

USD/JPY

Daily Pivots: (S1) 121.10; (P) 121.35; (R1) 121.69; http://www.actionforex.com/forex_analysis_and_forecasts/pivot_points/pivot_points_summary_200603205734/

USD/JPY retreats mildly after reaching as high as 121.62. At this point, further rally is still in favor as long as 120.67 support holds and next upside target will be 122.17 high. However, as displayed in mild bearish divergence conditions in 4 hours MACD and RSI, USD/JPY could be losing momentum and upside could be limited by this 122.17 key resistance. On the downside, touching of 120.67 again will indicate a short term top is possibly formed. But still, as long as 119.43 support holds, rally from 117.60 is still in force and another rise is expected to follow after brief consolidation.

In the bigger picture, previous break of medium term rising channel support (108.99, 114.41, 117.87) indicates the whole medium term rally from 108.99 has completed at 122.17. However, current strong rally from 115.13 suggest that price actions from 122.17 is just developing into sideway consolidation to rise from 108.99 only, instead of a sharp reversal. Hence, a retest of 122.17 high is expected to be seen. But still, firm break above this resistance is needed to confirm medium term rally from 108.99 has resumed. Otherwise, medium term outlook will be neutral at best and there should still be another fall to retest 115.13 low before completing such consolidation.

On the downside, below 119.43 cluster support will indicate that the rise from 117.60 has finished and thus warn that the whole rebound from 115.13 has completed too. Focus will then be on 117.60 support and firm break will confirm such case. Deeper fall should then be seen to retest this low and probably further towards 114.02/41 support zone (61.8% retracement of 108.99 to 122.17 at 114.02).

EUR/JPY

Daily Pivots: (S1) 163.24; (P) 163.58; (R1) 163.93; http://www.actionforex.com/forex_analysis_and_forecasts/pivot_points/pivot_points_summary_200603205734/

EUR/JPY continues to consolidate in early US session and is still pressing 4 hours 55 EMA (now at 163.24). Even though upside momentum remains convincing, EUR/JPY could still continue to crawl towards 61.8% projection of 137.16 to 159.63 from 150.75 at 164.64 as long as 162.64 support holds. Below 162.64 will suggest a short term top is formed and bring deeper correction towards short term rising trend line (now at 161.80).

Also, we’d like to maintain that risk of short term reversal remains high after previous break of the short term rising channel, with bearish divergence condition staying in 4 hours MACD and RSI and with daily MACD remains below signal line. Also, it’s possible that EUR/JPY is now in formation of a diagonal triangle to conclude the rally from 150.75. Hence, upside could be limited by 164.64 on loss of momentum and bring reversal. Break of 161.05 support will add much weight that rise from 150.75 has ended and deeper decline should then follow to 159.60 support first.

In the bigger picture, EUR/JPY’s previous break above medium term rising channel resistance suggests that strength of the rally from 150.75 is stronger than we originally thought. But still, interpretation of rally from 130.60 remains unchanged. First wave up ended at 143.60, subsequent correction ended at 137.167. The third wave up ended at 159.63 while fourth wave correction has ended at 150.75. Rise from there represents the final advance in this structure, targeting 61.8% projection of 137.16 to 159.63 from 150.75 at 164.64 and could terminate there.

On the downside, rise from 150.75 could still resume as long as 159.60 support holds. However, sustained trading below 159.60 will warn that prior break of medium term rising channel resistance was merely a throw-over. Also, this will give a serious warning signal that the whole rise rise from 130.60 has ended. EUR/JPY should set to test the medium channel support (now at 153.51) in such case.

Forex News Digest

http://www.bloomberg.com/apps/news?pid=20601083&sid=au.7Kc8oC00s&refer=currency

http://www.bloomberg.com/apps/news?pid=20601083&sid=aFcioLKKpMuE&refer=currency

http://www.bloomberg.com/apps/news?pid=20601083&sid=auUmVetg5PUI&refer=currency

http://www.bloomberg.com/apps/news?pid=20601083&sid=aqZDui1zFqAY&refer=currency

http://www.bloomberg.com/apps/news?pid=20601083&sid=aGOE2y9YyBdw&refer=currency

http://www.bloomberg.com/apps/news?pid=20601083&sid=aTYT_7kRF.8o&refer=currency

http://c.moreover.com/click/here.pl?r944313555
Tue, 22 May 2007 12:01:00 GMT from AP via MSN Money

http://c.moreover.com/click/here.pl?r944297217
Tue, 22 May 2007 11:46:00 GMT from Bloomberg

http://c.moreover.com/click/here.pl?r944282505
Tue, 22 May 2007 11:32:00 GMT from Washington Post

http://c.moreover.com/click/here.pl?r944232040
Tue, 22 May 2007 10:49:00 GMT from Reuters

http://c.moreover.com/click/here.pl?r944208269
Tue, 22 May 2007 10:29:00 GMT from Bloomberg

http://www.actionforex.com/latest_news/latest_news/forex_news_20060323537/ Economic Indicators Update
GMT Ccy Events Actual Consensus Previous Revised
05:00 JPY BOJ meeting minutes Apr
07:15 CHF Swiss Combined PPI M/M Apr 0.90% 0.50% 0.30%
07:15 CHF Swiss Conbined PPI Y/Y Apr 2.60% 2.10% 2.40%
09:00 EUR Eurozone Trade balance (euro) Mar 7.4B 3.0 B -1.7 B -1.3B
09:00 EUR Germany ZEW index May 24 24 16.5
09:00 EUR Eurozone ZEW index May 22.3 14.5 10.7
10:00 EUR ECB’s Trichet speaks
13:15 USD Treasury Paulson Meets Chinese Officials
22:00 USD Fed’s Bernanke Speaks
23:30 USD Fed’s Lacker Speaks On Inflation
EUR Germany Import price index M/M Apr 0.50% 0.60%
EUR Germany Import price index Y/Y Apr 0.00% 0.90%

http://www.actionforex.com/general_information/forex_newsletters/forex_newsletter_200507301487/

2007-03-02 15:03:48

Kirchner lauds economic recovery

BUENOS AIRES, Argentina (AP) - Argentine President Nestor Kirchner trumpeted

his government’s performance on the economy and human rights during his

state-of-the-nation address, and also defended his ties to Venezuelan leftist

Hugo Chavez.

2007-03-02 14:44:40

Austria’s budget deficit to decrease to 1.12 pct of GDP in 2007 - minister

VIENNA (AFX) - The Austrian coalition government plans to reduce the budget

deficit to 1.12 pct of gross domestic product in 2007 from 1.2 pct in 2006 and

then to 0.88 pct for the following year.

2007-03-02 14:02:45

Czech public finances ‘an obstacle’ to adopting the euro - central bank official

PRAGUE (AFX) - The current state of the Czech Republic’s finances is an

obstacle to the country switching to the euro, a top official at the Czech

central bank (CNB) said.

2007-03-02 13:29:44

Indian inflation falls to 6.05 pct vs 6.63 previous week

NEW DELHI (AFX) - India’s inflation rate has fallen by over half a

percentage point, helped by cheaper food and fuel, official data showed today,

easing pressure on the government.

2007-03-02 11:15:27

Polish economy grows 6.4 pct in fourth quarter

WARSAW (AFX) - Poland’s gross domestic product grew by 6.4 pct in the fourth

quarter of last year on a 12-month comparison, official data showed.

2007-03-02 11:15:13

Estonia Jan industrial output up 7 pct up yr-on-yr, down 1 pct vs Dec

TALLINN - Estonia’s industrial output in January rose 7 pct from a year

earlier but fell 1 pct from December, BNS news service reported, citing the

Statistical Office.

For more information and to contact AFX: www.afxnews.com and www.afxpress.com

For more information and to contact AFX: www.afxnews.com and www.afxpress.com