Stock of the Day

May 31, 2022

United Therapeutics (UTHR)

$541.51
+$1.48 (+0.3%)
Market Cap: $23.16B

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 a mixed-to-positive investor reaction as its settlement with Liquidia removes a major legal overhang while establishing a clearer competitive outlook for pulmonary hypertension treatments. The stock has been trading near its 200-day average, with analyst sentiment remaining broadly favorable.

  • United Therapeutics settled all six patent and antitrust disputes with Liquidia, reducing litigation uncertainty surrounding Liquidia’s YUTREPIA inhaled treprostinil treatment. The agreement also limits YUTREPIA’s label, particularly by excluding the pulmonary hypertension associated with interstitial lung disease indication, which may protect UTHR’s competitive position. United Therapeutics Settles Litigation And Resets Pulmonary Hypertension Competition
  • The settlement calls for Liquidia to make approximately $380.7 million in payments, providing United Therapeutics with financial compensation for resolving the disputes. The deal also gives investors more visibility into the future competitive landscape. LQDA Settles UTHR Disputes for $380.7M, Limits Yutrepia Label
  • Jefferies raised its price target for United Therapeutics to $728. Other analysts also remain constructive: the stock carries a “Moderate Buy” consensus rating and an average target of $627.31, above the recent trading level. UTHR Price Target Raised to $728 at Jefferies
  • CEO Martine Rothblatt sold 9,500 shares for approximately $5.13 million, reducing her ownership by 2.84%. The transaction was disclosed in an SEC filing, but the remaining stake is substantial and the sale alone does not establish a change in business outlook. United Therapeutics CEO Stock Sale SEC Filing

The key catalyst is the litigation settlement: it removes legal risk and may limit YUTREPIA’s competitive reach, although Liquidia’s strong rally indicates that investors also view the agreement as favorable to the rival’s commercial prospects.

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