Shares of United Therapeutics ( UTHR ) continued to gain on the company's first quarter results - shares were up 12.4% over two trading sessions since the earnings release.
The company reported earnings of $2.43 per share in the first quarter, well above the Zacks Consensus Estimate of $1.57 and the year-ago earnings of $1.19 per share. Revenues, which increased 18.1% to $289.4 million, missed the Zacks Consensus Estimate of $296.0 million.
The Quarter in Detail
Remodulin revenues increased 18.7% from the year-ago quarter to $136.1 million. Revenues improved 13.5% sequentially.
United Therapeutics is working on introducing Remodulin in the Japanese and Chinese markets which would bring in incremental sales. Moreover, the company has an agreement with Medtronic, Inc. ( MDT ) for the development of an implantable pump to deliver Remodulin.
Meanwhile, Tyvaso and Adcirca contributed $107.1 million (up 13.1%) and $41.4 million (up 22.3%), respectively, to first quarter revenues.
We note that United Therapeutics is facing a patent challenge for Remodulin injection from Sandoz. United Therapeutics has filed a patent infringement lawsuit against Sandoz. The trial is expected to continue through mid-May.
R&D expenses for the first quarter declined 75.3% to $12.4 million mainly due to lower share-based compensation expense.
SG&A spending decreased 57.7% from the year-ago quarter to $30.2 million due to lower share-based compensation costs.
United Therapeutics' first quarter results were mixed with the company beating on earnings thanks to lower stock-based compensation expense and missing on revenues. Although Tyvaso's performance was a bit disappointing, Remodulin improved significantly. We expect investor focus to remain on the commercialization of Orenitram, the Sandoz litigation and results on Actelion's ( ALIOF ) pulmonary arterial hypertension candidate, selexipag, which should be out shortly.
United Therapeutics is a Zacks Rank #3 (Hold) stock. A better-ranked stock in the health care sector is Gilead Sciences Inc. ( GILD ) which carries a Zacks Rank #1 (Strong Buy).ACTELION LTD (ALIOF): Get Free ReportGILEAD SCIENCES (GILD): Free Stock Analysis ReportMEDTRONIC (MDT): Free Stock Analysis ReportUTD THERAPEUTIC (UTHR): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research