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What Analysts Recommend for United Therapeutics in June 2017

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Long-term growth drivers

United Therapeutics’ (UTHR) collaboration with Medtronic is developing RemoSynch, an implantable infusion pump for the administration of Remodulin. In April 2017, the company announced regulatory delays in the approval of RemoSynch. The commercialization of the device would be postponed to 2018.

United Therapeutics is conducting a phase 2/3 clinical trial with dinutuximab for evaluating its safety and efficacy in the treatment of multiple GD2 expressing cancers. The success of the drug in the clinical trial would add to the company’s product portfolio.

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The company is also carrying out its phase 2/3 SAPPHIRE clinical trial with Aurora-GTTM, an endothelial nitric oxide synthase gene therapy (or eNOS gene therapy) for the treatment of pulmonary arterial hypertension (or PAH). The company expects to commercialize the product in the US by 2020 after receiving FDA approval.

The ongoing clinical trials may be the primary strength of the company’s growth prospects. United Therapeutics’ growing product portfolio and simultaneous growth in revenues may boost the First Trust NYSE Arca Biotechnology Index ETF (FBT). UTHR holds ~3.3% of FBT’s total portfolio holdings.

Analysts’ recommendations

Thirteen analysts covered United Therapeutics in June 2017. Two analysts recommended a “strong buy,” and none of the analysts recommended a “buy.” Six analysts recommended a “hold,” four analysts recommended a “sell,” and one analyst recommended a “strong sell.” Around 15.0% of these analysts recommended some form of “buy.”

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Competitors’ ratings

Out of 20 analysts analyzing Incyte Corporation (INCY) in June 2017, six analysts recommended a “strong buy,” and ten analysts recommended a “buy.” Four analysts recommended a “hold,” and none of the analysts recommended a “sell” or “strong sell.” Around 80.0% of the analysts analyzing Incyte suggested some form of “buy.”

Fourteen analysts covered Seattle Genetics (SGEN) in June 2017. Two analysts suggested a “strong buy,” and three analysts suggested a “buy.” Eight analysts recommended a “hold,” and one analyst recommended a “sell.” None of the analysts analyzing Seattle Genetics recommended a “strong sell.” Around 36.0% of the analysts analyzing Seattle Genetics recommended some form of “buy.”

Out of ten analysts covering Ionis Pharmaceuticals (IONS) in June, one analyst suggested a “strong buy,” and three analysts suggested a “buy.” Five analysts recommended a “hold,” and one analyst recommended a “strong sell.” Around 40.0% of the analysts covering Ionis Pharmaceuticals suggested some form of “buy.”

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