United Therapeutics Corporation Reports First Quarter 2024 Financial Results
“The first quarter of 2024 represents another quarter of record revenue and double-digit year-over-year revenue growth,” jointly said
“Our distinctive commercial and clinical profile, alongside our solid balance sheet and cash flow potential, makes
First Quarter 2024 Financial Results
Key financial highlights include (dollars in millions, except per share data):
|
Three Months Ended
|
|
Dollar
|
|
Percentage
|
|||||
|
2024 |
|
2023 |
|
|
|||||
|
|
|
|
|
|
|
|
|||
Total revenues |
$ |
677.7 |
|
$ |
506.9 |
|
$ |
170.8 |
|
34 % |
Net income |
$ |
306.6 |
|
$ |
240.9 |
|
$ |
65.7 |
|
27 % |
Net income, per basic share |
$ |
6.52 |
|
$ |
5.20 |
|
$ |
1.32 |
|
25 % |
Net income, per diluted share |
$ |
6.17 |
|
$ |
4.86 |
|
$ |
1.31 |
|
27 % |
Revenues
The table below presents the components of total revenues (dollars in millions):
|
Three Months Ended
|
|
Dollar
|
|
Percentage
|
||||||
|
2024 |
|
2023 |
|
|
||||||
Net product sales: |
|
|
|
|
|
|
|
||||
Tyvaso DPI®(1) |
$ |
227.5 |
|
$ |
118.7 |
|
$ |
108.8 |
|
|
92 % |
Nebulized Tyvaso®(1) |
|
145.0 |
|
|
119.7 |
|
|
25.3 |
|
|
21 % |
Total Tyvaso |
|
372.5 |
|
|
238.4 |
|
|
134.1 |
|
|
56 % |
Remodulin®(2) |
|
128.0 |
|
|
121.4 |
|
|
6.6 |
|
|
5 % |
Orenitram® |
|
106.2 |
|
|
88.2 |
|
|
18.0 |
|
|
20 % |
Unituxin® |
|
58.4 |
|
|
49.1 |
|
|
9.3 |
|
|
19 % |
Adcirca® |
|
6.4 |
|
|
7.3 |
|
|
(0.9 |
) |
|
(12 )% |
Other |
|
6.2 |
|
|
2.5 |
|
|
3.7 |
|
|
148 % |
Total revenues |
$ |
677.7 |
|
$ |
506.9 |
|
$ |
170.8 |
|
|
34 % |
(1) |
Net product sales include both the drug product and the respective inhalation device. |
(2) |
Net product sales include sales of infusion devices, including the Remunity® Pump. |
Total Tyvaso revenues grew by 56 percent to
The growth in Tyvaso DPI revenues resulted primarily from an increase in quantities sold and, to a lesser extent, a price increase. The increase in Tyvaso DPI quantities sold was due to continued growth in the number of patients following the product's launch and, to a lesser extent, increased commercial utilization following the implementation of the Part D redesign under the Inflation Reduction Act.
The growth in nebulized Tyvaso revenues resulted primarily from inventory destocking by our distributors in the first quarter of 2023, which did not reoccur during the first quarter of 2024.
The growth in Remodulin revenues resulted from an increase in
The increase in Orenitram revenues resulted from an increase in quantities sold and, to a lesser extent, a price increase. The increase in quantities sold was driven, at least in part, by increased commercial utilization following the implementation of the Part D redesign under the Inflation Reduction Act.
The increase in Unituxin revenues resulted from an increase in quantities sold and a price increase.
The table below presents the breakdown of total revenues between
|
Three Months Ended |
||||||||||||
|
2024 |
|
2023 |
||||||||||
|
|
ROW |
Total |
|
|
ROW |
Total |
||||||
Net product sales: |
|
|
|
|
|
|
|
||||||
Tyvaso DPI(1) |
$ |
227.5 |
$ |
— |
$ |
227.5 |
|
$ |
118.7 |
$ |
— |
$ |
118.7 |
Nebulized Tyvaso(1) |
|
133.7 |
|
11.3 |
|
145.0 |
|
|
115.7 |
|
4.0 |
|
119.7 |
Total Tyvaso |
|
361.2 |
|
11.3 |
|
372.5 |
|
|
234.4 |
|
4.0 |
|
238.4 |
Remodulin(2) |
|
108.3 |
|
19.7 |
|
128.0 |
|
|
93.2 |
|
28.2 |
|
121.4 |
Orenitram |
|
106.2 |
|
— |
|
106.2 |
|
|
88.2 |
|
— |
|
88.2 |
Unituxin |
|
53.4 |
|
5.0 |
|
58.4 |
|
|
44.3 |
|
4.8 |
|
49.1 |
Adcirca |
|
6.4 |
|
— |
|
6.4 |
|
|
7.3 |
|
— |
|
7.3 |
Other |
|
6.0 |
|
0.2 |
|
6.2 |
|
|
2.3 |
|
0.2 |
|
2.5 |
Total revenues |
$ |
641.5 |
$ |
36.2 |
$ |
677.7 |
|
$ |
469.7 |
$ |
37.2 |
$ |
506.9 |
(1) |
Net product sales include both the drug product and the respective inhalation device. |
(2) |
Net product sales include sales of infusion devices, including the Remunity Pump. |
Expenses
Cost of sales. The table below summarizes cost of sales by major category (dollars in millions):
|
Three Months Ended
|
|
Dollar
|
|
Percentage
|
||||||
|
2024 |
|
2023 |
|
|
||||||
Category: |
|
|
|
|
|
|
|
||||
Cost of sales |
$ |
71.8 |
|
$ |
52.7 |
|
|
$ |
19.1 |
|
36 % |
Share-based compensation expense (benefit)(1) |
|
1.1 |
|
|
(0.4 |
) |
|
|
1.5 |
|
375 % |
Total cost of sales |
$ |
72.9 |
|
$ |
52.3 |
|
|
$ |
20.6 |
|
39 % |
(1) |
See Share-based compensation below. |
Cost of sales, excluding share-based compensation. Cost of sales for the three months ended
Research and development expense. The table below summarizes the nature of research and development expense by major expense category (dollars in millions):
|
Three Months Ended
|
|
Dollar
|
|
Percentage
|
||||||
|
2024 |
|
2023 |
|
|
||||||
Category: |
|
|
|
|
|
|
|
||||
External research and development(1) |
$ |
52.7 |
|
$ |
45.1 |
|
$ |
7.6 |
|
|
17 % |
Internal research and development(2) |
|
44.9 |
|
|
34.4 |
|
|
10.5 |
|
|
31 % |
Share-based compensation expense(3) |
|
6.4 |
|
|
1.3 |
|
|
5.1 |
|
|
392 % |
Impairments(4) |
|
— |
|
|
— |
|
|
— |
|
|
— % |
Other(5) |
|
0.1 |
|
|
2.1 |
|
|
(2.0 |
) |
|
(95 )% |
Total research and development expense |
$ |
104.1 |
|
$ |
82.9 |
|
$ |
21.2 |
|
|
26 % |
(1) |
External research and development primarily includes fees paid to third parties (such as clinical trial sites, contract research organizations, and contract laboratories) for preclinical and clinical studies and payments to third-party contract manufacturers before FDA approval of the relevant product. |
(2) |
Internal research and development primarily includes salary-related expenses for research and development functions, internal costs to manufacture product candidates before FDA approval, and internal facilities-related expenses, including depreciation, related to research and development activities. |
(3) |
See Share-based compensation below. |
(4) |
Impairments primarily includes impairment charges to write down the carrying value of in-process research and development and of certain property, plant, and equipment as a result of research and development activities. There were no impairment charges during the three months ended |
(5) |
Other primarily includes upfront fees and milestone payments to third parties under license agreements related to development-stage products and adjustments to the fair value of our contingent consideration obligations. |
Research and development expense, excluding share-based compensation. Research and development expense for the three months ended
Selling, general, and administrative expense. The table below summarizes selling, general, and administrative expense by major category (dollars in millions):
|
Three Months Ended
|
|
Dollar
|
|
Percentage
|
||||||
|
2024 |
|
2023 |
|
|
||||||
Category: |
|
|
|
|
|
|
|
||||
General and administrative |
$ |
103.1 |
|
$ |
83.7 |
|
|
$ |
19.4 |
|
23 % |
Sales and marketing |
|
23.2 |
|
|
16.9 |
|
|
|
6.3 |
|
37 % |
Share-based compensation expense (benefit)(1) |
|
18.1 |
|
|
(13.3 |
) |
|
|
31.4 |
|
236 % |
Total selling, general, and administrative expense |
$ |
144.4 |
|
$ |
87.3 |
|
|
$ |
57.1 |
|
65 % |
(1) |
See Share-based compensation below. |
General and administrative, excluding share-based compensation. General and administrative expense for the three months ended
Share-based compensation. The table below summarizes share-based compensation expense (benefit) by major category (dollars in millions):
|
Three Months Ended
|
|
Dollar
|
|
Percentage
|
||||||
|
2024 |
|
2023 |
|
|
||||||
Category: |
|
|
|
|
|
|
|
||||
Stock options |
$ |
5.7 |
|
$ |
4.9 |
|
|
$ |
0.8 |
|
16 % |
Restricted stock units |
|
15.5 |
|
|
12.2 |
|
|
|
3.3 |
|
27 % |
Share tracking awards plan (STAP) |
|
3.9 |
|
|
(30.0 |
) |
|
|
33.9 |
|
113 % |
Employee stock purchase plan |
|
0.5 |
|
|
0.5 |
|
|
|
— |
|
— % |
Total share-based compensation expense (benefit) |
$ |
25.6 |
|
$ |
(12.4 |
) |
|
$ |
38.0 |
|
306 % |
The increase in share-based compensation expense for the three months ended
Other income (expense), net. The change in other income (expense), net for the three months ended
Income tax expense.
Income tax expense for the three months ended
Share repurchase. In
The final number of shares that we will ultimately repurchase pursuant to the ASR agreement will be based on the average of the daily volume-weighted average price per share of our common stock during the repurchase period, less a discount and subject to adjustments pursuant to the terms and conditions of the ASR agreement. At the final settlement of the ASR agreement, we may be entitled to receive additional shares of common stock, or, under certain limited circumstances, be required to make a cash payment to Citi or, if we so elect, deliver shares of common stock to Citi. The final settlement of the transactions under the ASR agreement is expected to occur in the second quarter of 2024 with respect to
Webcast
We will host a webcast to discuss our first quarter 2024 financial results on
At
You can learn more about what it means to be a PBC here: unither.com/pbc.
Forward-Looking Statements
Statements included in this press release that are not historical in nature are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, among others, statements related to our revenue growth and cash flow expectations; our unique position in the biotech industry; upcoming clinical catalysts; our organ manufacturing programs; the potential to provide an unlimited supply of tolerable, transplantable organs; our belief in our near-term and long-term potential, despite potential competition emerging this year; and our goals of innovating for the unmet medical needs of our patients and to benefit our other stakeholders, furthering our public benefit purpose of developing novel pharmaceutical therapies and technologies that expand the availability of transplantable organs. These forward-looking statements are subject to certain risks and uncertainties, such as those described in our periodic reports filed with the
ORENITRAM, REMODULIN, REMUNITY, TYVASO, TYVASO DPI, and UNITUXIN are registered trademarks of
ADCIRCA is a registered trademark of Eli Lilly and Company.
CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per share data) |
|||||||
|
Three Months Ended
|
||||||
|
2024 |
|
2023 |
||||
|
(Unaudited) |
||||||
Total revenues |
$ |
677.7 |
|
|
$ |
506.9 |
|
Operating expenses: |
|
|
|
||||
Cost of sales |
|
72.9 |
|
|
|
52.3 |
|
Research and development |
|
104.1 |
|
|
|
82.9 |
|
Selling, general, and administrative |
|
144.4 |
|
|
|
87.3 |
|
Total operating expenses |
|
321.4 |
|
|
|
222.5 |
|
Operating income |
|
356.3 |
|
|
|
284.4 |
|
Interest income |
|
53.8 |
|
|
|
29.2 |
|
Interest expense |
|
(13.3 |
) |
|
|
(13.8 |
) |
Other income (expense), net |
|
1.8 |
|
|
|
(7.9 |
) |
Total other income, net |
|
42.3 |
|
|
|
7.5 |
|
Income before income taxes |
|
398.6 |
|
|
|
291.9 |
|
Income tax expense |
|
(92.0 |
) |
|
|
(51.0 |
) |
Net income |
$ |
306.6 |
|
|
$ |
240.9 |
|
Net income per common share: |
|
|
|
||||
Basic |
$ |
6.52 |
|
|
$ |
5.20 |
|
Diluted |
$ |
6.17 |
|
|
$ |
4.86 |
|
Weighted average number of common shares outstanding: |
|
|
|
||||
Basic |
|
47.0 |
|
|
|
46.3 |
|
Diluted |
|
49.7 |
|
|
|
49.6 |
|
SELECTED CONSOLIDATED BALANCE SHEET DATA (Unaudited, in millions) |
||
|
|
|
Cash, cash equivalents, and marketable investments |
$ |
4,199.7 |
Total assets |
|
6,495.2 |
Total liabilities |
|
1,157.1 |
Total stockholders’ equity |
|
5,338.1 |
Category: Earnings
View source version on businesswire.com: https://www.businesswire.com/news/home/20240501574189/en/
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