How United Therapeutics Performed in 1Q18

Daniel Collins - Author

May 3 2018, Published 1:07 p.m. ET

Revenue trends

In 1Q18, United Therapeutics (UTHR) generated revenues of $389.2 million compared to $370.5 million in 1Q17. That was a 5% growth YoY (year-over-year) and a 16% decline quarter-over-quarter.

United Therapeutics’ Tyvaso, Adcirca, and Orenitram primarily pushed its revenue growth in 1Q18.

In 1Q18, United Therapeutics reported net income of $244.5 million compared to $178.6 million in 1Q17, which is a 37% growth YoY.

In 1Q18, it reported net earnings per diluted share of $5.57 compared to $3.89 in 1Q17, representing a 43% growth YoY.

Its operating income was $306.9 million in 1Q18 compared to $263.6 million in 1Q17.

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United Therapeutics is currently conducting more than 20 investigational programs that include products for pulmonary hypertension, gene therapy, drug delivery devices, oncology, and transplantable manufactured organs for individuals suffering from last-stage organ disorder. They’re expected to be the company’s long-term growth drivers.

In December 2017, the FDA approved Medtronic’s (MDT) pre-market approval for its Implantable System for Remodulin (or ISR), and further regulatory processes are underway. After the FDA’s decision, United Therapeutics resubmitted its NDA (New Drug Application) for the use of Remodulin in its ISR. The FDA considered it class 2 resubmission, which is subject to a six-month review. United Therapeutics anticipates FDA action by July 30. FDA approval is expected to boost Remodulin sales.

Expense trends

In 1Q18, United Therapeutics reported net cost of product sales of $53.2 million compared to $14.3 million in 1Q17. Adcirca’s royalty expenses of $37.3 million primarily attributed to the increase.

The company reported R&D (research and development) expenses of $35.7 million compared to $36.2 million in 1Q17. The expansion of its pipeline programs for the treatment of cardiopulmonary diseases and cancer primarily attributed to the increase in R&D expenditure.

Reported G&A (general and administrative) and S&M (sales and marketing) expenses were $52.8 million and $13.3 million, respectively, compared to $53.5 million and $15.4 million, respectively, in 1Q17.

In 1Q18, Gilead Sciences (GILD), Pfizer (PFE), and Exelixis (EXEL), peers in the biopharmaceuticals market, generated revenues of $5.1 billion, $12.9 billion, and $212.3 million, respectively.


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