Overview

• US rare disease therapy maker's Q1 revenue fell 2% yr/yr, missing analyst expectations

• Net income for Q1 declined 15% yr/yr

• Company approved $2 bln share repurchase, executed $1.5 bln via accelerated agreements

Outlook

• Company aims to return to sequential quarterly revenue growth across commercial portfolio in near term

• United Therapeutics plans further development in pulmonary hypertension and fibrosis for ralinepag DPI

• Company says positive clinical trial results may support future growth and revenue diversification

Result Drivers

• TYVASO PRODUCT MIX - Revenue decline in total Tyvaso driven by lower Nebulized Tyvaso sales, partially offset by growth in Tyvaso DPI; Tyvaso DPI growth was primarily due to higher quantities sold and some price increase

• REMODULIN AND ORENITRAM TRENDS - Remodulin sales fell due to lower quantities sold, while Orenitram revenue rose on higher sales volume

• COST OF SALES INCREASE - Cost of sales rose mainly due to higher inventory reserve expense, including an estimated loss from a Tyvaso DPI supply agreement

Company press release: ID:nBw3cw5Npa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Miss	$781.50 mln	$796.92 mln (11 Analysts)
Q1 EPS		$5.82
Q1 Net Income		$274.90 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the pharmaceuticals peer group is "buy"

• Wall Street's median 12-month price target for United Therapeutics Corp is $655.00, about 14.5% above its May 5 closing price of $572.20

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 16 three months ago

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