An Investor's Guide to United Therapeutics in 2017

1 2 3
Part 3
An Investor's Guide to United Therapeutics in 2017 PART 3 OF 3

United Therapeutics’s Net Profit Margins Are Expected to Narrow

Product innovations

In December 2014, United Therapeutics (UTHR) collaborated with DEKA Research & Development to develop a pre-filled and semi-disposable pump, RemUnity, for the continuous and subcutaneous administration of Remodulin to PAH (pulmonary arterial hypertension) patients. This small pump deploys platform acoustic wave sensing technology, enabling it to function without moving parts. The technology is a significant improvement, as any interruption in the delivery of drugs due to breakage of the pump’s movable parts could prove life threatening for PAH patients. This pump is also ten times more accurate in measuring Remodulin dissipation. United Therapeutics expects to launch RemUnity in the earlier part of the company’s four-year planning cycle, between 2018 and 2020.

Additionally, the pump has also been designed so that it can be used to rapidly shift PAH patients to RemoPro, a painless form of Remodulin (treprostinil) administered subcutaneously, without site pain. RemoPro is also scheduled to be launched between 2018 and 2020. United Therapeutics makes up about 0.42% of the iShares S&P Mid-Cap 400 Growth ETF (IJK).

United Therapeutics&#8217;s Net Profit Margins Are Expected to Narrow

Interested in JAZZ? Don't miss the next report.

Receive e-mail alerts for new research on JAZZ

Success! You are now receiving e-mail alerts for new research. A temporary password for your new Market Realist account has been sent to your e-mail address.

Success! has been added to your Ticker Alerts.

Success! has been added to your Ticker Alerts. Subscriptions can be managed in your user profile.

Significant contraction in net profit margins

Analysts expect United Therapeutics’ 2017 net profit margins to be around 30.2%, a year-over-year contraction of ~1,440 basis points. This narrowing is mainly attributed to the company’s high spending associated with multiple ongoing Phase 3 clinical trials.

Peers Jazz Pharmaceuticals (JAZZ), Regeneron Pharmaceuticals (REGN), and Vertex Pharmaceuticals (VRTX) are expected to report net profit margins of 23.3%, 23.2%, and 8.7%, respectively, in 2017.

Long-term drivers

RemoPro is expected to shift most patients receiving intravenously administered Remodulin to subcutaneous delivery. Half of the patients had shifted to the intravenous mode of delivery because they could tolerate the pain associated with subcutaneous Remodulin delivery.


Please select a profession that best describes you: