United Therapeutics Corp.
) reported fourth-quarter earnings of $1.60 per share, well above
the year-ago earnings of 77 cents and the Zacks Consensus
Estimate of $1.25. Higher revenues and lower expenses led to the
year-over-year improvement in earnings.
Fourth quarter revenues increased 24.9% to $243.8 million,
well above the Zacks Consensus Estimate of $232.0 million.
Full-year earnings increased 56% to $5.71 per share, beating
the Zacks Consensus Estimate of $5.33. Full year revenues
increased 23.3% to $916 million, well above the Zacks Consensus
Estimate of $906 million.
The Quarter in Detail
Net product revenues, consisting of Remodulin, Tyvaso and
Adcirca, increased 23.7% to $240.4 million in the reported
quarter. Revenues increased primarily due to the continued
increase in the number of patients being prescribed Remodulin,
Tyvaso and Adcirca.
Moreover, revenues benefited by about $3.6 million as
wholesalers ordered additional shipments of Adcirca toward the
end of Dec 2012 to avoid near-term shortages resulting from the
timing of the holidays.
United Therapeutics derives the majority of its product
revenues from Remodulin, which posted sales of $116.2 million, up
8.5%. Remodulin sales should benefit from the approval of the
intravenous (IV) formulation in Europe.
United Therapeutics is working on developing Remodulin for the
Japanese and Chinese markets which would bring in incremental
sales. Moreover, the company has an agreement with
) for the development of an implantable pump to deliver
Remodulin. Patient enrolment for the implantable pump study has
been completed with results expected in Aug 2013.
Meanwhile, Tyvaso and Adcirca contributed $86.0 million and
$38.2 million, respectively, to fourth quarter revenues.
We note that United Therapeutics is facing a patent challenge
for Remodulin (treprostinil) injection. Sandoz,
) generic unit, is seeking approval for its generic version of
Remodulin (10 mg/mL). United Therapeutics has filed a patent
infringement lawsuit against Sandoz.
R&D expenses for the fourth quarter declined 22.9% to
$37.5 million mainly due to lower share-based compensation
SG&A spending decreased 30.6% from the year-ago quarter to
$40.1 million due to lower share-based compensation and sales and
United Therapeutics maintained its revenue guidance for 2013.
The company expects 2013 revenues to be about $1 billion with a
plus/minus margin of 5%.
United Therapeutics currently carries a Zacks Rank #3 (Hold).
The company is well-positioned to gain share in the pulmonary
arterial hypertension market. Remodulin continues to look very
strong in both the IV and subcutaneous (SC) forms.
With the approval of Adcirca and Tyvaso, United Therapeutics
has a varied range of therapies available for the treatment of
pulmonary arterial hypertension. We believe United Therapeutics'
pulmonary arterial hypertension product portfolio will drive
strong top-and bottom-line growth.
However, competition will continue to increase with several
companies working on bringing additional therapies to the
Currently, companies like
) look more attractive with a Zacks Rank #1 (Strong Buy).
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