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How Did United Therapeutics Perform in 4Q17 and Fiscal 2017?

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United Therapeutics’ revenue trends

In 4Q17, United Therapeutics (UTHR) generated revenues of $464.7 million, up from $409.0 million in 4Q16. This trend reflected ~14.0% growth on a year-over-year (or YoY) basis and ~4.0% growth on a quarter-over-quarter basis. In fiscal 2017, United Therapeutics reported revenues of $1.7 billion, up from $1.6 billion in 2016 for ~8.0% YoY growth.

In 4Q17, United Therapeutics reported net income of $19.0 million, down from $110.3 million in 4Q16. In 2017, United Therapeutics reported net income of $417.9 million, down from $713.7 million in fiscal 2016.

In 4Q17 and fiscal 2017, United Therapeutics reported net income per diluted share of $0.43 and $9.31, respectively, compared to $2.43 and $15.25 in 4Q16 and fiscal 2016.

In 4Q17 and fiscal 2017, United Therapeutics reported non-GAAP (generally accepted accounting principles) earnings per diluted share of $3.89 and $16.51, respectively, compared to $4.06 and $15.51 in 4Q16 and fiscal 2016.

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Expense trends

In 4Q17, United Therapeutics reported its net cost of product sales of $53.0 million compared to $28.4 million in 4Q16, which reflected ~86.6% YoY growth. In fiscal 2017, United Therapeutics reported its net cost of product sold of $105.7 million, up from $72.7 million in 2016, which reflected ~45.4% YoY growth. The increase in royalty expenses for Adcirca primarily contributed to the increase in the cost of product sales in 4Q17 and fiscal 2017.

In 4Q17 and fiscal 2017, United Therapeutics reported R&D (research and development) expenses of $113.6 million and $264.6 million, respectively, compared to $66.9 million and $147.6 million in 4Q16 and 2016. These trends reflected ~69.8% and ~79.3% YoY growth, respectively.

United Therapeutics expanded its pipeline programs for the treatment of cardiopulmonary diseases in 2017, which primarily contributed to the increase in its R&D expenses.

In 4Q17 and fiscal 2017, United Therapeutics reported SG&A (selling, general, and administrative) expenses of $159.1 million and $330.1 million, respectively. In comparison, it reported SG&A expenses of $139.5 million and $316.8 million in 4Q16 and fiscal 2016, respectively, which reflected ~14.0% and ~4.2% YoY growth.

In the biopharmaceuticals market, United Therapeutics’ peers Alnylam Pharmaceuticals (ALNY), Incyte (INCY), and Nektar Therapeutics (NKTR) reported revenues of $37.9 million, ~$444.2 million, and $95.5 million, respectively.

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