Analyst Note| Anna Baran |
United Therapeutics reported first-quarter results above our and FactSet consensus expectations. Its treprostinil franchise for pulmonary arterial hypertension (PAH) remains fairly stable despite generic competition, with both Remodulin and Orenitram outperforming our estimates and Tyvaso and Adcirca performing in line with our estimates. Overall, PAH sales were down just 2% from last year, an improvement after several quarters of sharper declines from Adcirca and Remodulin generic entry. After minor adjustments to our model for better-than-anticipated Remodulin sales, we're maintaining our fair value estimate of $107 per share, and we believe shares are fairly valued. We're also maintaining our no-moat rating for United due to the vulnerability of its treprostinil portfolio to both branded and generic competition.