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United Therapeutics (UTHR) Q1 Earnings Beat, Sales Miss
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United Therapeutics (UTHR - Free Report) first-quarter 2023 earnings of $4.86 per share beat the Zacks Consensus Estimate of $4.35 per share and our model estimate of $3.94 per share. Earnings declined 3% year over year.
Revenues in the reported quarter were $506.9 million, which missed the Zacks Consensus Estimate of $514.0 million. Revenues rose 10% year over year, driven by Tyvaso. The reported revenues, however, beat our model estimate of $497.4 million.
Quarter in Detail
United Therapeutics markets four products for pulmonary arterial hypertension (PAH) — Remodulin, Tyvaso, Adcirca and Orenitram. It also markets Unituxin for the treatment of pediatric patients with high-risk neuroblastoma.
Tyvaso sales totaled $238.4 million, up 39% year over year, gaining from higher sales volume driven by the launch of Tyvaso dry powder inhalation (DPI) formulation last year in June. Net sales also rose on account of increased product uptake following label expansion of the drug in pulmonary hypertension associated with the interstitial lung disease (PH-ILD) indication in 2021.
However, Tyvaso sales missed the Zacks Consensus Estimate of $259 million.
The demand trends of Tyvaso remain strong and the company continues to see new patient growth. However, distributors’ destocking through the first quarter of 2023 due to significant orders of the nebulized formulation in 2022 hurt sales to an extent in the quarter.
United Therapeutics developed the Tyvaso DPI in partnership with MannKind Corporation (MNKD - Free Report) . Per an existing commercial supply agreement, MannKind Corporation is responsible for manufacturing and supplying Tyvaso DPI to United Therapeutics.
United Therapeutics is seeing strong demand for Tyvaso DPI but it does not have sufficient inventory to meet the demand. Though partner MannKind is working to increase DPI production capacity, the supply issue may continue through 2023
Shares of United Therapeutics were down 4.5% in response to the mixed results and Tyvaso miss. However, the stock has risen 16.8% in the past year period against the industry’s decline of 7.8%.
Image Source: Zacks Investment Research
Remodulin (including Remunity Pump) sales declined 8% year over year to $121.4 million, while Orenitram sales rose 7% year over year, amounting to $88.2 million.
Unituxin sales reached $49.1million, down 12% year over year. Adcirca sales were $7.3 million, down 26% year over year.
Research and development expenses were $82.9 million in the quarter, up 20% year over year. Selling, generaland administrative expenses rose 11% to $87.3 million in the quarter.
Pipeline Update
United Therapeutics is working on expanded indications for Orenitram and Tyvaso. Some phase III studies are ongoing across various forms of PH and pulmonary fibrosis indications.
Key phase III programs include Tyvaso in patients with various forms of chronic fibrosing interstitial lung disease (TETON studies) and oral ralinepag (PAH — ADVANCE CAPACITY and ADVANCE OUTCOMES studies).
The late-stage TETON 1 study in patients with idiopathic pulmonary fibrosis (IPF) is currently enrolling patients at sites located in the United States and Canada. The second phase III study of Tyvaso in IPF patients, TETON 2, which was initiated in October 2022, is being conducted outside of the United States and Canada. If the drug is approved for the IPF indication, management expects Tyvaso sales in IPF to exceed the drug’s sales in the PAH indication. Enrollment is ongoing in the ADVANCE CAPACITY and ADVANCE OUTCOMES studies.
Zacks Rank & Key Pick
United Therapeutics currently carries a Zacks Rank #3 (Hold).
United Therapeutics Corporation Price, Consensus and EPS Surprise
Some better-ranked stocks in the same sector are Larimar Therapeutics (LRMR - Free Report) and Jounce Therapeutics . While Larimar Therapeutics has a Zacks Rank of 1 (Strong Buy), Jounce Therapeutics has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Loss estimates for Larimar Therapeutics have narrowed from $2.07 per share to $1.08 per share for 2023 over the past 60 days and from $2.28 per share to $1.15 per share for 2024. Shares of Larimar Therapeutics have risen 15.9% in the past year.
Earnings of LRMR beat estimates in each of the trailing four quarters, delivering an average earnings surprise of 36.06%. In the last reported quarter, LRMR earnings beat estimates by 73.08%.
Loss estimates for Jounce Therapeutics’ have narrowed from $2.02 per share to $1.71 per share for 2023 over the past 60 days and from $1.72 per share to $1.03 per share for 2024. Shares of Jounce Therapeutics have declined 63.9% in the past year.
JNCE delivered an average three-quarter negative earnings surprise of 5.22%.
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United Therapeutics (UTHR) Q1 Earnings Beat, Sales Miss
United Therapeutics (UTHR - Free Report) first-quarter 2023 earnings of $4.86 per share beat the Zacks Consensus Estimate of $4.35 per share and our model estimate of $3.94 per share. Earnings declined 3% year over year.
Revenues in the reported quarter were $506.9 million, which missed the Zacks Consensus Estimate of $514.0 million. Revenues rose 10% year over year, driven by Tyvaso. The reported revenues, however, beat our model estimate of $497.4 million.
Quarter in Detail
United Therapeutics markets four products for pulmonary arterial hypertension (PAH) — Remodulin, Tyvaso, Adcirca and Orenitram. It also markets Unituxin for the treatment of pediatric patients with high-risk neuroblastoma.
Tyvaso sales totaled $238.4 million, up 39% year over year, gaining from higher sales volume driven by the launch of Tyvaso dry powder inhalation (DPI) formulation last year in June. Net sales also rose on account of increased product uptake following label expansion of the drug in pulmonary hypertension associated with the interstitial lung disease (PH-ILD) indication in 2021.
However, Tyvaso sales missed the Zacks Consensus Estimate of $259 million.
The demand trends of Tyvaso remain strong and the company continues to see new patient growth. However, distributors’ destocking through the first quarter of 2023 due to significant orders of the nebulized formulation in 2022 hurt sales to an extent in the quarter.
United Therapeutics developed the Tyvaso DPI in partnership with MannKind Corporation (MNKD - Free Report) . Per an existing commercial supply agreement, MannKind Corporation is responsible for manufacturing and supplying Tyvaso DPI to United Therapeutics.
United Therapeutics is seeing strong demand for Tyvaso DPI but it does not have sufficient inventory to meet the demand. Though partner MannKind is working to increase DPI production capacity, the supply issue may continue through 2023
Shares of United Therapeutics were down 4.5% in response to the mixed results and Tyvaso miss. However, the stock has risen 16.8% in the past year period against the industry’s decline of 7.8%.
Image Source: Zacks Investment Research
Remodulin (including Remunity Pump) sales declined 8% year over year to $121.4 million, while Orenitram sales rose 7% year over year, amounting to $88.2 million.
Unituxin sales reached $49.1million, down 12% year over year. Adcirca sales were $7.3 million, down 26% year over year.
Research and development expenses were $82.9 million in the quarter, up 20% year over year. Selling, generaland administrative expenses rose 11% to $87.3 million in the quarter.
Pipeline Update
United Therapeutics is working on expanded indications for Orenitram and Tyvaso. Some phase III studies are ongoing across various forms of PH and pulmonary fibrosis indications.
Key phase III programs include Tyvaso in patients with various forms of chronic fibrosing interstitial lung disease (TETON studies) and oral ralinepag (PAH — ADVANCE CAPACITY and ADVANCE OUTCOMES studies).
The late-stage TETON 1 study in patients with idiopathic pulmonary fibrosis (IPF) is currently enrolling patients at sites located in the United States and Canada. The second phase III study of Tyvaso in IPF patients, TETON 2, which was initiated in October 2022, is being conducted outside of the United States and Canada. If the drug is approved for the IPF indication, management expects Tyvaso sales in IPF to exceed the drug’s sales in the PAH indication. Enrollment is ongoing in the ADVANCE CAPACITY and ADVANCE OUTCOMES studies.
Zacks Rank & Key Pick
United Therapeutics currently carries a Zacks Rank #3 (Hold).
United Therapeutics Corporation Price, Consensus and EPS Surprise
United Therapeutics Corporation price-consensus-eps-surprise-chart | United Therapeutics Corporation Quote
Some better-ranked stocks in the same sector are Larimar Therapeutics (LRMR - Free Report) and Jounce Therapeutics . While Larimar Therapeutics has a Zacks Rank of 1 (Strong Buy), Jounce Therapeutics has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Loss estimates for Larimar Therapeutics have narrowed from $2.07 per share to $1.08 per share for 2023 over the past 60 days and from $2.28 per share to $1.15 per share for 2024. Shares of Larimar Therapeutics have risen 15.9% in the past year.
Earnings of LRMR beat estimates in each of the trailing four quarters, delivering an average earnings surprise of 36.06%. In the last reported quarter, LRMR earnings beat estimates by 73.08%.
Loss estimates for Jounce Therapeutics’ have narrowed from $2.02 per share to $1.71 per share for 2023 over the past 60 days and from $1.72 per share to $1.03 per share for 2024. Shares of Jounce Therapeutics have declined 63.9% in the past year.
JNCE delivered an average three-quarter negative earnings surprise of 5.22%.