We recently reiterated our Outperform recommendation on
), which carries a Zacks #2 Rank (short-term Buy rating). United
Therapeutics started 2012 on a strong note with first quarter
earnings coming in well above expectations.
The company continued its impressive performance with
second-quarter earnings coming in at $1.43 per share, well above
the year-ago earnings of $1.19 and the Zacks Consensus Estimate of
$1.12. Higher revenues led to the year-over-year improvement in
With the huge earnings beat, earnings estimates for both 2012
and 2013 have gone up significantly. United Therapeutics maintained
its revenue guidance for 2012. The company expects 2012 revenues to
be about $875 million with a plus/minus margin of 5%.
We believe United Therapeutics is well-positioned to gain share
in the pulmonary arterial hypertension (PAH) market. United
Therapeutics holds a strong position in the PAH market with three
approved products targeting this indication.
Lead product Remodulin continues to look very strong in both the
intravenous (IV) and subcutaneous (SC) forms. EU approval for the
IV formulation, received in late December 2011, should drive sales
further. The company is looking to launch Remodulin in new
territories including Japan (potential launch in 2014) and China
(potential approval in 12 months). The Japanese market could bring
in incremental sales of about $100 million.
The other two PAH products in the company's portfolio are
Adcirca (tadalafil) and Tyvaso. Both products should contribute
significantly to revenues as patient acceptance increases. We are
positive on United Therapeutics' November 2008 deal with
) whereby it licensed US rights to tadalafil (Cialis) from
We believe the company's PAH product portfolio will drive strong
top-and bottom-line growth.
LILLY ELI & CO (LLY): Free Stock Analysis
UTD THERAPEUTIC (UTHR): Free Stock Analysis
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