United Therapeutics (UTHR) Q4 Earnings Decline On High Costs
Zacks Investment Research | Feb 21, 2018 08:37PM ET
United Therapeutics Corporation (NASDAQ:UTHR) reported adjusted earnings of $3.89 per share in the fourth quarter of 2017, which declined 4.2% from the year-ago quarter due to higher operating costs. The Zacks Consensus Estimate was pegged at $1.94 per share.
Adjusted earnings excluded the impact of share-based compensation expenses and the impact of tax reforms.
Revenues for the reported quarter were $465 million, beating the Zacks Consensus Estimate of $416 million. Revenues also grew 13.6% year over year. Stronger sales across the PAH franchise pulled up the top line in the quarter.
The Quarter in Detail
United Therapeutics markets four products for the treatment of PAH – Remodulin, Tyvaso, Adcirca and Orenitram. Please note that United Therapeutics bought exclusive rights to commercialize Adcirca for the treatment of PAH in the United States from Eli Lilly (NYSE:LLY) in November 2008.
Adcirca sales were $119.3 million, up 5.9% year over year. Orenitram sales amounted to $48 million in the quarter, up 25.3% year over year due to patient growth. Remodulin sales were $180.1 million, up 19.1% year over year. Tyvaso sales totaled 92.4 million, down 1.3% year over year. Sales of Tyvaso, however, improved sequentially in the quarter. Unituxin’s (for the treatment of pediatric patients with high-risk neuroblastoma) sales of $24.9 million surged 88.6% year over year.
Research and development (R&D) expenses escalated 96.4% to $91.5 million due to higher costs to support the company’s pipeline of cardiopulmonary and cancer drugs and to develop its organ manufacturing projects. On the conference call, the company said that R&D costs will continue to rise in 2018 to advance the company’s expanding pipeline.
Shares of United Therapeutics were down almost 10% on Wednesday, probably as management hinted at potentially higher costs for 2018. In fact, the stock has underperformed the Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.