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United Therapeutics (UTHR)
NASDAQ:UTHR
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United Therapeutics (UTHR) AI Stock Analysis

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UTHR

United Therapeutics

(NASDAQ:UTHR)

Rating:77Outperform
Price Target:
$459.00
▲(14.60% Upside)
United Therapeutics' strong financial performance and strategic initiatives, including record revenue growth and a significant share buyback, are major strengths. The technical indicators suggest bullish momentum, though potential overbought conditions warrant caution. The company's reasonable valuation and promising pipeline developments further support a positive outlook, despite competitive and regulatory challenges.
Positive Factors
Efficacy and Clinical Results
Tyvaso demonstrated a clinically meaningful 95.6 mL treatment effect vs placebo in absolute FVC.
Market Potential
Potential expansion into the approximately 100K US IPF patient population creates significant added runway for the Tyvaso franchise beyond existing PAH/PH-ILD markets.
Regulatory Advancements
UTHR plans to meet with the FDA to discuss ways to potentially expedite the regulatory review process for Tyvaso.
Negative Factors
Competition
DPI and nebulized Tyvaso continue to face near-term competition risk.
Usage Regimen
Tyvaso has the disadvantage of a 4x-daily inhalation regimen compared to competitor's oral dosing.

United Therapeutics (UTHR) vs. SPDR S&P 500 ETF (SPY)

United Therapeutics Business Overview & Revenue Model

Company DescriptionUnited Therapeutics Corporation, a biotechnology company, engages in the development and commercialization of products to address the unmet medical needs of patients with chronic and life-threatening diseases in the United States and internationally. Its commercial therapies include Remodulin to treat patients with pulmonary arterial hypertension (PAH) to diminish symptoms associated with exercise; Tyvaso, an inhaled formulation of prostacyclin analogue treprostinil to enhance the exercise ability in PAH patients and pulmonary hypertension associated with interstitial lung disease (PH-ILD); Orenitram, a tablet dosage form of treprostinil to enhance the exercise capacity in PAH patients; Unituxin, a monoclonal antibody for treating high-risk neuroblastoma; and Adcirca, an oral PDE-5 inhibitor to enhance the exercise ability in PAH patients. The company also engages in developing Tyvaso DPI, a dry powder inhalation form of Tyvaso; Remunity Pump, a small, lightweight, durable pump and separate controller; RemoPro and Ralinepag for the treatment of PAH; Aurora-GT, a gene therapy product to rebuild the blood vessels in the lungs; and Tyvaso PERFECT and TETON studies, which are the studies of Tyvaso in patients with World Health Organization (WHO) Group 3 pulmonary hypertension associated with chronic obstructive pulmonary disease (PH-COPD). It has licensing and collaboration agreements with DEKA Research & Development Corp. to develop a semi-disposable system for the subcutaneous delivery of treprostinil; MannKind Corporation to develop and license treprostinil inhalation powder and the Dreamboat device; and Arena Pharmaceuticals, Inc. to develop Ralinepag. The company was incorporated in 1996 and is headquartered in Silver Spring, Maryland.
How the Company Makes MoneyUnited Therapeutics generates revenue primarily through the sale of its pharmaceutical products, which treat chronic and life-threatening diseases. The company’s key revenue streams come from the commercial sales of its approved therapies, including Remodulin, Tyvaso, and Orenitram, which are prescribed to patients with pulmonary arterial hypertension. In addition to direct product sales, United Therapeutics may also earn revenue from partnerships with other biotechnology and pharmaceutical companies, including co-development agreements and licensing deals. The company invests heavily in research and development to innovate new therapies and expand its product offerings, which can enhance its market position and revenue potential. Moreover, the increasing prevalence of PAH and other related conditions contributes to a growing demand for its treatments, further supporting its earnings.

United Therapeutics Key Performance Indicators (KPIs)

Any
Any
Revenue by Segment
Revenue by Segment
Analyzes revenue from different business segments, highlighting which areas drive growth and profitability, and indicating strategic focus or diversification.
Chart InsightsUnited Therapeutics' Tyvaso segment continues to drive revenue growth, with a notable 22% increase in the latest quarter, contributing significantly to the company's 12th consecutive quarter of double-digit growth. The earnings call highlighted the strategic importance of Tyvaso DPI, despite potential competition from Liquidia. The company's robust pipeline, including the TETON studies, could further enhance revenue. A $1 billion share buyback indicates strong confidence in future prospects, although concerns about TPIP data and market competition remain.
Data provided by:Main Street Data

United Therapeutics Earnings Call Summary

Earnings Call Date:Jul 30, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced perspective with strong financial results and strategic initiatives, including record revenue growth and pipeline advancements. However, competitive challenges and concerns regarding market perceptions and regulatory hurdles were also highlighted.
Q2-2025 Updates
Positive Updates
Record-Breaking Revenue Growth
United Therapeutics reported record total revenue of $799 million, reflecting a 12% growth over the second quarter of 2024. This marks the 12th consecutive quarter of double-digit year-over-year revenue growth.
Tyvaso DPI Performance
Tyvaso DPI achieved a record total revenue of $315 million, representing 22% growth over the second quarter of 2024, with record patient shipments and strong market dynamics.
Strategic Share Repurchase
The Board of Directors authorized the repurchase of up to $1 billion in shares through March of next year, indicating confidence in the company's financial position and future growth.
Pipeline Development and Innovation
Progress in the TETON studies for idiopathic pulmonary fibrosis and the ADVANCE OUTCOMES study in pulmonary arterial hypertension, with expected data readouts that could significantly impact the company's revenue profile.
Financial Strength and Flexibility
The company generated nearly $1.5 billion in annual operating cash flow, allowing for strategic capital allocation and sustained success.
Negative Updates
Competitive Challenges
The launch of a competing treprostinil dry powder inhaler by Liquidia has led to some misinformation in the market, though United Therapeutics remains confident in Tyvaso DPI's long-term growth.
Regulatory and Statistical Analysis Concerns
Concerns were raised regarding the statistical analysis and potential overestimation of treatment effects in competitor studies, impacting investor perception.
Market Concerns for TPIP
Investors have overreacted to TPIP data, and there are significant hurdles before it can reach the market, with a lack of long-term safety data and a potentially lengthy timeline to approval.
Company Guidance
During United Therapeutics Corporation's Second Quarter 2025 Corporate Update call, the company reported a record total revenue of $799 million, marking a 12% growth compared to the second quarter of 2024, reflecting 12 consecutive quarters of double-digit year-over-year revenue growth. This performance was driven by their Tyvaso franchise, achieving $315 million in revenue with 22% growth over the previous year. Orenitram and Unituxin also showed double-digit revenue growth. The company highlighted its upcoming TETON 2 study results in idiopathic pulmonary fibrosis, expected in September, and the ADVANCE OUTCOMES study in pulmonary arterial hypertension. United Therapeutics anticipates continued growth fueled by their innovation wave, with new studies like EXPAND - UKidney and miroliverELAP underway. With nearly $1.5 billion in annual operating cash flow, the board authorized a share repurchase of up to $1 billion through March 2026, demonstrating financial strength and confidence in future prospects.

United Therapeutics Financial Statement Overview

Summary
United Therapeutics exhibits strong financial performance with robust revenue growth, high profit margins, and solid operational efficiency. The balance sheet shows low leverage and high equity ratios, indicating financial stability. Cash flow generation is strong, supporting operational and strategic initiatives.
Income Statement
85
Very Positive
United Therapeutics has demonstrated strong financial performance with a consistent increase in total revenue over multiple years. The TTM revenue growth rate is approximately 4.06%, and the gross profit margin stands at a robust 89.00%. Net profit margin is currently 40.43%, indicating efficient cost management and profitability. EBIT and EBITDA margins are also strong, at 46.87% and 52.21% respectively, reflecting solid operational efficiency.
Balance Sheet
80
Positive
The balance sheet is marked by a strong equity position with an equity ratio of 87.89%, indicating a low reliance on debt. The debt-to-equity ratio is low at 0.03, showcasing financial stability. Return on equity is a healthy 17.79%, reflecting effective use of equity capital in generating profits. However, the relatively low total liabilities suggest limited financial leverage.
Cash Flow
78
Positive
The company has demonstrated positive cash flow metrics with a free cash flow growth rate of 4.45%. The operating cash flow to net income ratio is 1.17, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 0.93, showing efficient translation of earnings into free cash flow. The cash flow is stable and supports the company's operational needs.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.08B2.88B2.33B1.94B1.69B1.48B
Gross Profit2.74B2.57B2.07B1.79B1.56B1.38B
EBITDA1.66B1.65B1.39B1.04B736.80M646.30M
Net Income1.24B1.20B984.80M727.30M475.80M514.80M
Balance Sheet
Total Assets7.91B7.36B7.17B6.04B5.17B4.62B
Cash, Cash Equivalents and Short-Term Investments3.05B3.27B2.99B2.84B1.93B1.83B
Total Debt0.00300.00M700.00M800.00M800.00M800.00M
Total Liabilities734.40M920.00M1.18B1.25B1.21B1.22B
Stockholders Equity7.17B6.44B5.98B4.80B3.96B3.40B
Cash Flow
Free Cash Flow1.07B1.08B747.60M663.70M477.40M696.40M
Operating Cash Flow1.37B1.33B978.00M802.50M598.20M755.70M
Investing Cash Flow-702.70M417.20M-719.60M-811.50M-486.90M-738.50M
Financing Cash Flow-431.20M-1.25B-11.90M75.40M44.80M-16.90M

United Therapeutics Technical Analysis

Technical Analysis Sentiment
Positive
Last Price400.52
Price Trends
50DMA
307.07
Positive
100DMA
303.84
Positive
200DMA
324.66
Positive
Market Momentum
MACD
21.07
Negative
RSI
74.24
Negative
STOCH
65.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UTHR, the sentiment is Positive. The current price of 400.52 is above the 20-day moving average (MA) of 325.21, above the 50-day MA of 307.07, and above the 200-day MA of 324.66, indicating a bullish trend. The MACD of 21.07 indicates Negative momentum. The RSI at 74.24 is Negative, neither overbought nor oversold. The STOCH value of 65.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UTHR.

United Therapeutics Risk Analysis

United Therapeutics disclosed 32 risk factors in its most recent earnings report. United Therapeutics reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

United Therapeutics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
$16.91B13.6426.08%23.25%64.46%
80
Outperform
$16.92B19.7024.30%18.87%1088.27%
77
Outperform
$18.11B15.6419.30%17.62%19.89%
76
Outperform
$11.09B17.1111.62%17.38%153.58%
75
Outperform
$10.20B18.1729.00%10.73%81.66%
61
Neutral
$12.47B357.68%55.77%46.81%
51
Neutral
$7.95B-0.40-41.62%2.21%22.29%-1.85%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
UTHR
United Therapeutics
400.52
51.81
14.86%
BMRN
BioMarin Pharmaceutical
57.77
-26.56
-31.50%
EXEL
Exelixis
37.88
12.37
48.49%
INCY
Incyte
86.64
24.38
39.16%
ASND
Ascendis Pharma
205.91
89.07
76.23%
GMAB
Genmab
27.54
0.08
0.29%

United Therapeutics Corporate Events

Product-Related AnnouncementsBusiness Operations and Strategy
United Therapeutics Announces Positive TETON-2 Study Results
Positive
Sep 2, 2025

On September 2, 2025, United Therapeutics announced positive results from the TETON-2 clinical study of Tyvaso® for idiopathic pulmonary fibrosis (IPF). The study met its primary endpoint, showing significant improvement in forced vital capacity compared to placebo, and demonstrated benefits across various subgroups. These results could potentially reshape IPF treatment and offer new hope for patients, as the company plans to use this data to support a supplemental New Drug Application to the FDA.

Stock BuybackBusiness Operations and Strategy
United Therapeutics Launches $1 Billion Share Buyback
Positive
Aug 1, 2025

On August 1, 2025, United Therapeutics Corporation announced the initiation of a $1 billion accelerated share repurchase program, reflecting confidence in its stock value and future growth prospects. The company entered into agreements with Citibank to repurchase shares, with settlements expected in late 2025 and early 2026, highlighting a strategic move to balance investment in growth with returning capital to shareholders.

Executive/Board ChangesShareholder Meetings
United Therapeutics Shareholders Approve Key Resolutions
Neutral
Jun 27, 2025

On June 26, 2025, United Therapeutics held its Annual Meeting of Shareholders where four key matters were voted on. The shareholders elected directors for a one-year term, approved an advisory resolution on executive compensation, amended the 2015 Stock Incentive Plan, and ratified Ernst & Young LLP as the independent public accounting firm for 2025.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 03, 2025