Sep 30, 2020

United Therapeutics Q3 2020 Earnings Report

United Therapeutics' financial performance reflected strong growth in Orenitram® and Tyvaso® net revenue, offset by a decline in overall revenues due to decreased Remodulin® and Adcirca® sales. The company is preparing for several key product launches in 2021.

Key Takeaways

United Therapeutics reported a decrease in total revenues by 5% year-over-year, but experienced growth in Orenitram® and Tyvaso® net revenues. Net income increased by 29% and the company is preparing for multiple product launches in 2021.

Orenitram® net revenue increased by 20% year-over-year.

Tyvaso® net revenue increased by 17% year-over-year.

Remodulin® sequential quarterly net revenue grew by 5%.

INCREASE sNDA is under FDA review with an action date in April 2021; Remunity™ launch preparations are ongoing.

Total Revenue
$380M
Previous year: $402M
-5.3%
EPS
$3.88
Previous year: $3.83
+1.3%
Gross Profit
$356M
Previous year: $369M
-3.4%
Cash and Equivalents
$670M
Previous year: $720M
-6.9%
Free Cash Flow
$235M
Previous year: $172M
+36.8%
Total Assets
$4.41B
Previous year: $4B
+10.3%

United Therapeutics

United Therapeutics

United Therapeutics Revenue by Segment

Forward Guidance

United Therapeutics anticipates launching Tyvaso for a new indication, along with Remunity Pump, Trevyent system, and Implantable System for Remodulin in the near-term.

Positive Outlook

  • Potential INCREASE product label expansion for Tyvaso
  • Launch of the Remunity Pump for Remodulin
  • Launch of the Implantable System for Remodulin
  • Resumption of enrollment in several clinical studies
  • Focus on pediatric use of Unituxin

Challenges Ahead

  • Delays in commercial sales of Remunity Pump due to pandemic-related supply chain issues
  • Complete response letter from FDA regarding Trevyent NDA
  • Delay in ISR launch until 2021 due to Medtronic satisfying PMA approval conditions
  • Potential delays in completion and data readouts for ongoing and planned studies due to the pandemic
  • Discontinuation of development of LNG01

Revenue & Expenses

Visualization of income flow from segment revenue to net income