Summary
- United Therapeutics Corporation’s stock has surged over 300% since my 2020 “Buy” rating, driven by strong sales of Tyvaso DPI and other PAH treatments.
- Despite facing generic competition, United has maintained resilience, leveraging strategic litigation and innovative product development to protect and grow its revenue streams.
- United’s future growth hinges on expanding Tyvaso DPI’s market and advancing its pipeline, including promising IPF treatments and groundbreaking organ transplant technologies.
- With over $4 billion in cash and a visionary CEO, UTHR is well-positioned for continued double-digit revenue growth and potential M&A opportunities.
Investment Overview
When I last covered United Therapeutics Corporation (NASDAQ:UTHR) for Seeking Alpha back in March 2020, four and a half years ago, I gave the company’s stock a “Buy” rating after some careful analysis. However, despite my optimism, I have to admit I am quite stunned by the >300% gain shares have made following my note. I suggested that the share price might reach $180 in an optimistic scenario — today, it has reached $395.
United’s core business remains its commercialized therapies for the treatment of pulmonary arterial hypertension (“PAH”) (see my former note for a discussion of the condition and a treatment overview), Tyvaso DPI (“dry powder inhaled”), nebulised Tyvaso, Remodulin, and Orenitram. These are all forms of the prostacyclin analogue treprostinil, unituxin, a monoclonal antibody indicated for high-risk neuroblastoma, an Adcirca, an “oral immediate-release tablet form of the PDE-5 inhibitor tadalafil” approved to aid exercise ability in PAH patients.
United Therapeutics’ performance in Q3 2024, and year-to-date revenues-wise, is presented below (source: Q3 2024 quarterly report/10-Q submission).
