Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

United Therapeutics Corp. (UTHR - Analyst Report) reported second-quarter earnings of $1.43 per share, well above the year-ago earnings of $1.19 and the Zacks Consensus Estimate of $1.12. Higher revenues led to the year-over-year improvement in earnings.

Including one-time items, earnings came in at $1.34 per share, up 13.6% from the year-ago period.

Second quarter revenues increased 22.8% to $225.6 million and exceeded the Zacks Consensus Estimate of $213 million.

The Quarter in Detail

Net product revenues, consisting of Remodulin, Tyvaso, Adcirca and other sales, increased 20.9% to $221.8 million in the reported quarter. Revenues increased primarily due to the continued increase in the number of patients being prescribed Remodulin, Tyvaso and Adcirca. United Therapeutics derives the majority of its product revenues from Remodulin, which posted sales of $110.4 million, up 5.2%. Remodulin sales should benefit from the approval of the IV formulation in Europe.

The company is working on developing Remodulin for the Japanese and Chinese markets which would bring in incremental sales. Remodulin could be launched in Japan in 2014.

Meanwhile, Tyvaso and Adcirca contributed $81.2 million and $30.2 million, respectively, to second quarter revenues.

United Therapeutics is currently seeking US approval for oral Remodulin for the treatment of pulmonary arterial hypertension (PAH). A response on the approvability of oral Remodulin should be out by October 27, 2012.

We note that the company is facing a patent challenge for Remodulin (treprostinil) injection. Sandoz, Novartis’ (NVS - Snapshot Report) generic unit, is seeking approval for its generic version of Remodulin (10 mg/mL). United Therapeutics has filed a patent infringement lawsuit against Sandoz.

R&D expenses for the second quarter increased 53% to $37.1 million mainly due to higher share-based compensation expense.

SG&A spend increased 123.2% from the year-ago quarter to $53.3 million due to higher share-based compensation costs.

Guidance Maintained

United Therapeutics maintained its revenue guidance for 2012. The company expects 2012 revenues to be about $875 million with a plus/minus margin of 5%.

Outperform on United Therapeutics

We currently have an Outperform recommendation on United Therapeutics, which carries a Zacks #2 Rank (short-term ‘Buy’ rating). We believe the company is well-positioned to gain share in the PAH market. Lead product, Remodulin, continues to look very strong in both the intravenous (IV) and subcutaneous (SC) forms. With the approval of Adcirca and Tyvaso, the company has a varied range of therapies available for the treatment of PAH. We believe the company’s PAH product portfolio will drive strong top-and bottom-line growth.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
LAKE SHORE G LSG 0.77 +6.05%
QUESTCOR PHA QCOR 80.07 +2.47%
VIPSHOP HOLD VIPS 156.35 +1.82%
ENLINK MIDST ENLC 36.29 +1.60%
BNC BANCORP BNCN 17.33 +1.58%