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United Therapeutics Corp UTHR

Morningstar Rating
$235.39 −2.57 (1.08%)
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Company Report

No-Moat United Therapeutics Faces Pressure Amid Patent Expirations and Branded Competition

United Therapeutics specializes in therapies for pulmonary arterial hypertension, or high blood pressure in the arteries of the lungs. The company's therapies for PAH largely focus on the prostacyclin pathway, and many of its treatments are based on the molecule, treprostinil. Its marketed PAH portfolio includes Remodulin (subcutaneous or intravenous administration), Tyvaso (inhaled), Orenitram (oral), and Adcirca (oral). The company also sells Unituxin for high-risk neuroblastoma, but we do not consider oncology to be United Therapeutics' core competency. The company has long been a leader in the prostacyclin market for PAH, but we expect its competitive position will be challenged by generic entry as well as Johnson & Johnson's Uptravi, which J&J gained through its acquisition of Actelion in 2017. Uptravi (oral selexipag) has quickly gained share, propelled by strong clinical data, and we expect it will remain a key competitor against United's products, particularly pipeline candidate ralinepag.

Price vs Fair Value

UTHR is trading at a 8% premium.
Price
$237.93
Fair Value
$881.00
Uncertainty
High
1-Star Price
$911.22
5-Star Price
$872.10
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Tyvaso received FDA approval in 2021 for the additional indication of PH-ILD and FDA approval in 2022 for Tyvaso DPI, which further expands Tyvaso's patient reach.

Bears

Generic versions of Remodulin and Adcirca have already launched, which will continue to erode sales.

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News

Trading Information

Previous Close Price
$237.96
Day Range
$235.23238.53
52-Week Range
$204.50260.10
Bid/Ask
$235.15 / $235.55
Market Cap
$11.10 Bil
Volume/Avg
188,265 / 472,558

Key Statistics

Price/Earnings (Normalized)
12.08
Price/Sales
5.06
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield
0.12%

Company Profile

United Therapeutics specializes in drug development for pulmonary arterial hypertension, a rare and progressive disease marked by abnormally high blood pressure in the arteries of the lungs. The company's therapies for PAH largely focus on the prostacyclin pathway, and many of its treatments are based on the same molecule, treprostinil. Most of the company's sales are generated within the United States. United Therapeutics also markets a pediatric oncology drug, but its focus largely remains in pulmonary arterial hypertension.
Sector
Healthcare
Industry
Biotechnology
Stock Style Box
Mid Value
Total Number of Employees
1,168

Competitors

Valuation

Metric
UTHR
EXEL
UCB
Price/Earnings (Normalized)
12.0824.9725.81
Price/Book Value
1.863.012.54
Price/Sales
5.063.954.46
Price/Cash Flow
10.9520.8225.57
Price/Earnings
UTHR
EXEL
UCB

Financial Strength

Metric
UTHR
EXEL
UCB
Quick Ratio
4.073.130.84
Current Ratio
4.413.341.32
Interest Coverage
19.753.88
Quick Ratio
UTHR
EXEL
UCB

Profitability

Metric
UTHR
EXEL
UCB
Return on Assets (Normalized)
15.30%9.47%5.10%
Return on Equity (Normalized)
18.83%11.88%8.82%
Return on Invested Capital (Normalized)
15.17%8.36%7.41%
Return on Assets
UTHR
EXEL
UCB
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