Dec 31, 2019

United Therapeutics Q4 2019 Earnings Report

Reported financial results for Q4 and full year 2019.

Key Takeaways

United Therapeutics Corporation reported a decrease in quarterly net revenue by 18% to $311 million compared to the prior year, primarily due to a $43.6 million decrease in purchases of treprostinil-based products by a U.S. distributor adjusting inventory levels.

Full year net revenue growth of 3% excluding Adcirca.

Company expects 2020 full year net revenue growth.

INCREASE study of Tyvaso in PH-ILD met primary and secondary endpoints.

Remunity system cleared by FDA for pharmacy-filled use; launch expected by July 2020.

Total Revenue
$311M
Previous year: $381M
-18.4%
EPS
$1.96
Previous year: $3.34
-41.3%
Gross Profit
$282M
Previous year: $350M
-19.2%
Cash and Equivalents
$738M
Previous year: $669M
+10.3%
Free Cash Flow
$77.8M
Previous year: $66.6M
+16.8%
Total Assets
$3.91B
Previous year: $3.4B
+15.1%

United Therapeutics

United Therapeutics

Forward Guidance

The company anticipates growth in net revenue over 2019 levels due to the expanded Orenitram label and the expected launch of Remunity.

Positive Outlook

  • Expanded Orenitram label reflecting the FREEDOM-EV results.
  • Anticipated near-term launch of Remunity.
  • Potential expansion of the Tyvaso label following the INCREASE study results.
  • Continued progress on new infusion systems for delivery of parenteral treprostinil.
  • U.S. patient demand for Remodulin remained strong

Challenges Ahead

  • The year-over-year quarterly revenue decline was largely due to an estimated $43.6 million decrease in purchases of our treprostinil-based products in the fourth quarter of 2019 by one U.S. distributor
  • Potential extension of the PDUFA date for Trevyent beyond April 2020.
  • The FDA may issue a complete response letter for Trevyent.
  • Delay in the ISR launch until 2021.
  • Phase II/III DISTINCT study did not meet its primary endpoint.