H.C. Wainwright Reiterates Buy On United Therapeutics Following Healthcare Conference

In a research report issued Monday, H.C. Wainwright analyst Andrew Fein reiterated a Buy rating on United Therapeutics (NASDAQ:UTHR) with a $150 price target. The report follows discussion with management at H.C. Wainwright healthcare conference this past week.

Fein noted, “We highlight to investors the following emerging value drivers which suggest that the recent stock run is not only justified but still falls short of full value. With these value drivers in mind, $500M worth of stock buyback authorized for the next 12 months, and a shortage of short theses on the stock following UTHR’s legal win against Sandoz, we reiterate our Buy rating”.

The analyst added, “Management has previously stated its belief that Orenitram could power the company to a doubling of revenues. Given the incremental news flow from the first few months of the product in the market, we believe that Orenitram is likely to start adding to the top and bottom line from the first few quarters of the launch. According the company, at present there are approximately 100 new patient starts on Orenitram monthly, with a significant fraction of these being switches from Remodulin therapy (we estimate ~33%). Considering an average annual Remodulin price of $180K/patient, and an average annual Orenitram price of $250K/patient, both new starts and therapy switches become relevant. We believe that Orenitram titration in the market will be faster than in clinical studies and reach higher doses, making the above average price of $250K/patient a conservative estimate (our physician feedback suggests that annual price per patient may reach as high at $900K).”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Andrew Fein has a total average return of 15.6% and a 71.4% success rate. Fein has a 26.7% average return when recommending UTHR, and is ranked #429 out of 3274 analysts.

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