Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of biopharmaceutical company Jazz Pharmaceuticals (NASDAQ:JAZZ) dipped as much as 10% after the company reported its first-quarter results and following regulatory comments with regard to generic competition to its lead drug.

So what: For the quarter, Jazz reported an adjusted profit of $1.37 per share as product revenue nearly doubled to $194.6 million. As has been the case in the past, narcolepsy drug Xyrem led the charge with sales jumping 60% to $117.5 million. Comparatively, Wall Street had only expected EPS of $1.36 on $190.3 million in sales, yielding another earnings beat for shareholders. Looking forward, Jazz also boosted its EPS forecast to a range of $6.10-$6.30 from its previous guidance of $5.70-$5.90.

While this would normally send a company higher, comments from Jazz's regulatory filing that the Food and Drug Administration may approve a generic version of Xyrem being developed by Roxane Labs sent shareholders scurrying for the exits. With Xyrem comprising 60% of sales, that could be a big problem.

Now what: While the potential competition for Xyrem is certainly unwelcome news, an ongoing lawsuit between Jazz and Roxane appears even more likely now to involve a cash settlement for Roxane rather than Jazz allowing Roxane to bring the generic drug to market. Outside of what seem to largely overblown fears, Jazz continues to deliver incredible growth and profitability. Jazz is now valued at less than nine times the midpoint of this year's forecast with a revenue growth rate of 40% this year. If that wasn't enough, it also authorized a $200 million share repurchase program. If you are looking for significantly undervalued biopharmaceutical companies, I'd highly suggest digging deeper into Jazz Pharmaceuticals.

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