Q3 2023 Earnings Summary
Reported on Jan 4, 2025 (Before Market Open)
Pre-Earnings Price$222.86Last close (Oct 31, 2023)
Post-Earnings Price$211.70Open (Nov 1, 2023)
Price Change
$-11.16(-5.01%)
- United Therapeutics has multiple shots on goal in kidney transplantation, including the Xeno kidney, Miro kidney, and Iviva kidney implants, addressing a large unmet need of over 500,000 patients on dialysis in the U.S.
- Consistent growth in the Tyvaso franchise, with net additions of approximately 500 patients per quarter, achieving record prescriptions and starts in Q3, and process improvements ensuring supply meets demand.
- Improving operating margins due to disciplined expense management and revenue growth, adhering to a budget algorithm limiting operating expenses to no more than 50% of prior year revenue, leading to better financial performance.
- Potential competition from new therapies could impact revenue growth.* United Therapeutics acknowledges questions around competitors, specifically sotatercept and another inhaled treprostinil that could enter the market. While management expresses confidence, the approval of these competitors could challenge UTHR's market position in PAH treatments.
- Increased sample sizes in clinical trials may indicate challenges in achieving efficacy endpoints.* The TETON studies for pulmonary fibrosis have increased their sample size to 576 patients each due to variability observed in the disease, potentially reflecting difficulties in demonstrating significant results. This could delay approvals and affect future revenue projections.
- Manufacturing capacity constraints may limit near-term growth.* The company relies on manufacturing expansions at its partner MannKind to meet demand for Tyvaso DPI. While process improvements have been implemented, the long-term ability to fulfill increasing demand depends on new equipment coming online in the first half of 2024. Any delays could impact supply and sales growth.