Stock of the Day

May 31, 2022

United Therapeutics (UTHR)

$510.38
-$5.08 (-1.0%)
Market Cap: $22.11B

About United Therapeutics

United Therapeutics Corporation, a biotechnology company, engages in the development and commercialization of products to address the unmet medical needs of patients with chronic and life-threatening diseases in the United States and internationally. The company offers Tyvaso DPI, an inhaled dry powder via pre-filled and single-use cartridges; Tyvaso, an inhaled solution via ultrasonic nebulizer; Remodulin (treprostinil) injection to treat patients with pulmonary arterial hypertension (PAH) to diminish symptoms associated with exercise; Orenitram, a tablet dosage form of treprostinil, to delay disease progression and improve exercise capacity in PAH patients; and Adcirca, an oral PDE-5 inhibitor to enhance the exercise ability in PAH patients. It also markets and sells Unituxin (dinutuximab) injection, a monoclonal antibody for treating high-risk neuroblastoma; and Remunity Pump, which contains a pump and separate controller for Remodulin. In addition, the company engages in developing RemoPro and Ralinepag for the treatment of PAH; Aurora-GT, a gene therapy product to rebuild the blood vessels in the lungs; and Nebulized Tyvaso, for the treatment of idiopathic pulmonary fibrosis, as well as xenografts, which are development-stage organ products. It has licensing and collaboration agreements with DEKA Research & Development Corp. to develop a semi-disposable system for the subcutaneous delivery of treprostinil; MannKind Corporation to develop and license treprostinil inhalation powder and the Dreamboat device; and Arena Pharmaceuticals, Inc. to develop Ralinepag. The company was incorporated in 1996 and is headquartered in Silver Spring, Maryland.

Today's Trend

United Therapeutics Corporation (NASDAQ: UTHR) is receiving support from an earnings beat, encouraging pipeline developments and favorable analyst commentary, although revenue pressure and insider selling remain risks.

  • Quarterly earnings exceeded expectations. United Therapeutics reported second-quarter EPS of $7.27, above the roughly $6.86 consensus and up from $6.41 a year earlier. Strong profitability, including a net margin above 40%, provides a favorable fundamental backdrop. United Therapeutics Q2 Earnings Beat Estimates
  • Pipeline milestones are offsetting near-term product concerns. Investors are focusing on progress for ralinepag, including its Phase 3 milestone and regulatory applications. The program could provide a new growth driver and reduce reliance on Tyvaso amid competitive pressures. EPS Strength and Ralinepag’s Phase 3 Milestone
  • Analyst sentiment remains favorable. H.C. Wainwright reiterated a Buy rating with a $660 price target. RBC maintained an Outperform rating and set a $677 target, despite reducing its previous target from $704. These targets indicate continued confidence in United Therapeutics’ longer-term prospects. Buy Rating Reiterated on United Therapeutics
  • Revenue fell short of estimates. Second-quarter revenue was $783.3 million, below the $804.65 million consensus and down 1.9% year over year. The revenue miss highlights near-term pressure even as earnings and pipeline updates were encouraging. United Therapeutics Q2 Earnings Results
  • Senior executives sold sizable positions. CEO Martine Rothblatt sold 9,500 shares for approximately $4.9 million, while EVP Paul Mahon sold 8,300 shares for about $4.3 million. The transactions may reflect personal or scheduled sales, but the reductions in insider ownership could weigh on investor sentiment. United Therapeutics Insider Selling
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