Jazz shares fall on Barclay's downgrade

Shares of Jazz Pharmaceuticals Inc. fell Friday as a Barclay's Capital analyst downgraded the stock based on its value and the company's debt.

The stock fell 25 cents, or 5.6 percent, to $4.23 in midday trading. Shares have traded between 52 cents and $8.85 over the past 52 weeks. The movement is a reversal from Thursday, when shares gained a boost from positive study data on the company's fibromyalgia drug candidate. Fibromyalgia is a pain disorder.

Barclay's analyst Richard B. Silver downgraded the stock to "Underweight" from "Overweight" partly because of the run-up in value from the positive study data. Also, he said the company faces some risk associated with its debt default status.

"The most important pending issue for Jazz remains resolution of debt default status, but timing and outcome are difficult to predict," he said, in a note to investors. "While we see bankruptcy as unlikely, it remains a risk.

The Palo Alto, Calif.-based company has about $17 million in available cash and total debt of about $124 million.