On November 15, United Therapeutics (UTHR) entered into a global license agreement with Arena Pharmaceuticals (ARNA). According to the agreement, Arena Pharmaceuticals will provide United Therapeutics exclusive worldwide rights to develop, manufacture, and commercialize its investigational drug, ralinepag, to treat individuals with pulmonary arterial hypertension. Currently, ralinepag is in its Phase 3 clinical stage.
According to the agreement, United Therapeutics will make an upfront payment of $800.0 million to Arena Pharmaceuticals. Arena Pharmaceuticals is also subject to receive an additional milestone payment of up to $400.0 million. Arena Pharmaceuticals is subject to receive a low double-digit tiered royalty on annual revenues from ralinepag sales.
On November 20, United Therapeutics’ stock price closed at $113.22, which represents an ~2.83% decline from its close of $116.52 on November 19. United Therapeutics’ stock price closed at $147.95 on December 29, 2017. The stock price was $113.22 on November 20, which represents a decline of 23% YTD (year-to-date).
United Therapeutics hit its 52-week high of $152.55 on January 3 and its 52-week low of $100.57 on May 11.
Among the 12 analysts tracking United Therapeutics in November, two recommended a “strong buy,” five recommended a “hold,” four recommended a “sell,” and one recommended a “strong sell.”
On November 23, United Therapeutics had a consensus 12-month target price of $125.82, which represents an ~10.16% return on investment over the next 12 months.
On November 21, Biogen and Gilead Sciences had consensus 12-month target prices of $389.35 and $86.15, respectively, which represents an ~21.87% and ~27.50% return on investment over the next 12 months.