United Therapeutics (UTHR) reported third-quarter earnings of $1.32 per share, well above the year-ago earnings of $0.67. Higher revenues and lower costs led to the improvement in earnings. Based on the solid third quarter results, we have increased our estimates for 2011 and 2012.
We believe the company is well-positioned to gain share in the pulmonary hypertension (PAH) market. Lead product Remodulin continues to look very strong in both the intravenous (IV) and subcutaneous (SC) forms. With the approval of Adcirca and Tyvaso, the company now has a varied range of therapies available for the treatment of PAH. We believe the company’s PAH product portfolio will drive strong top-and bottom-line growth.
Going forward, we expect investor focus to remain on the successful commercialization of Adcirca and Tyvaso. We are upgrading United Therapeutics to Outperform.
