How United Therapeutics’ Adcirca and Tyvaso Are Positioned in 3Q17



Adcirca revenue trends

In 2Q17, United Therapeutics’ (UTHR) Adcirca generated revenues of around $120.6 million, which reflected a whopping ~33% increase on a year-over-year (or YoY) basis and ~51% growth on a quarter-over-quarter (or QoQ) basis. In 1H17, Adcirca reported revenues of around $200.6 million compared to $163.5 million in 1H16.

The above chart represents the revenue curve of Adcirca from 2Q16 to 2Q17. To know more about Adcirca, please read Why United Therapeutics’ Adcirca Could Witness Strong Revenue Growth.

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About Adcirca

Adcirca (tadalafil) is a phosphodiesterase 5 inhibitor used for the treatment of pulmonary arterial hypertension (or PAH) (patients in WHO group 1) for improvement of exercise capacity. United Therapeutics acquired commercialization rights for Adcirca in the US market from Eli Lilly (LLY). The US patent for Adcirca will expire in November 2017, and the simultaneous launch of generic versions of the drug is anticipated, which could lead to a decline in the sales of United Therapeutics’ Adcirca.

In May 2017, United Therapeutics amended its agreement with Eli Lilly related to Adcirca. The amendment was made to extend the terms of the agreement and also revise the financial terms of the agreement. The agreement states that beginning December 1, 2017, United Therapeutics’ royalty rate on net Adcirca sales will rise from 5% to 10%.

Adcirca competes with Eli Lilly’s Cialis and Pfizer’s (PFE) Viagra. Teva Pharmaceuticals (TEVA) will launch a generic version of Viagra in December 2017. Notably, the SPDR S&P Biotech ETF (XBI) invests ~1.9% of its total portfolio holding in United Therapeutics. XBI also invests ~2.2% of its total portfolio in Gilead Sciences (GILD), a peer of United Therapeutics in the PAH drugs market.


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