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Mar 31, 2020

United Therapeutics Q1 2020 Earnings Report

Reported a decrease in first quarter net revenue and an increase in diluted earnings per share.

Key Takeaways

United Therapeutics Corporation announced its financial results for the quarter ended March 31, 2020. First quarter net revenue decreased 2% to $356.3 million year-over-year. First quarter diluted earnings per share (EPS) was $3.12 compared to an $11.32 per share loss in the first quarter of 2019. Non-GAAP diluted EPS of $3.61 was up 1% from the first quarter of 2019.

First quarter Orenitram® net revenue growth of 18% year-over-year

Major milestones such as the INCREASE filing and Remunity™ Pump launch remain on track despite the COVID-19 pandemic

Diluted earnings per share (EPS) was $3.12 compared to an $11.32 per share loss in the first quarter of 2019

United Therapeutics is engaged in the fight against COVID-19

Total Revenue
$356M
Previous year: $363M
-1.7%
EPS
$3.61
Previous year: $3.58
+0.8%
Gross Profit
$333M
Previous year: $334M
-0.2%
Cash and Equivalents
$875M
Previous year: $791M
+10.7%
Free Cash Flow
$202M
Previous year: -$653M
-130.9%
Total Assets
$4.03B
Previous year: $3.73B
+8.0%

United Therapeutics

United Therapeutics

United Therapeutics Revenue by Segment

Forward Guidance

Due to the rapidly evolving situation with COVID-19, United Therapeutics is no longer able to predict whether their full-year 2020 net revenues will grow compared to 2019.

Positive Outlook

  • Financial position is strong with enough cash, cash equivalents, and marketable securities on hand to fund operations for at least two years.
  • Have an ample supply of products with sufficient inventory of finished treprostinil-based products to supply the market for two years at current levels of demand.
  • Manufacturing of treprostinil-based products continues mostly as usual, and do not currently anticipate any supply shortages.
  • Distribution of drug product to patients continues without interruption.
  • Planned regulatory activities and interactions with the FDA continue.

Challenges Ahead

  • It is too early to predict what impact this pandemic, and the associated economic downturn, will have on our business.
  • There is considerable uncertainty and lack of visibility regarding our near-term revenue growth prospects and product development plans due to the rapidly evolving situation.
  • Observed a decline in new prescriptions from our treprostinil-based products during the month of April 2020 that we believe is primarily due to the inability of patients to visit their physicians’ offices.
  • Commercial efforts continue but could be disrupted as a result of the COVID-19 pandemic.
  • Most of our ongoing clinical studies have paused enrollment during the pandemic.

Revenue & Expenses

Visualization of income flow from segment revenue to net income