Analyst Terence Flynn from Morgan Stanley maintained a Hold rating on United Therapeutics and keeping the price target at $328.00.
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Terence Flynn’s rating is based on a combination of factors related to the recent data from United Therapeutics’ Tyvaso TETON-2 trial for idiopathic pulmonary fibrosis (IPF). The trial showed a statistically significant improvement in forced vital capacity (FVC) for patients on Tyvaso compared to placebo, particularly among those on background therapies like nintedanib and pirfenidone. However, the FVC benefit was not statistically significant for patients not on any background therapy, which may have contributed to the Hold rating.
Another factor influencing the Hold rating could be the higher discontinuation rate observed in the Tyvaso arm, primarily due to adverse events such as cough and the burden of nebulizer use four times daily. While the drug was generally well-tolerated, the real-world applicability of these results remains uncertain. Additionally, the potential for Tyvaso to be used as a first-line therapy or for patients who cannot tolerate other treatments offers promise, but these aspects may not be enough to warrant a more optimistic rating at this time.
In another report released yesterday, Bank of America Securities also reiterated a Hold rating on the stock with a $463.00 price target.