H.C. Wainwright Reiterates Buy On United Therapeutics


In a research note issued this morning, H.C. Wainwright reiterated coverage with a “Buy” rating on United Therapeutics Corporation (UTHR), and a price target of $120.00 a share.

H.C. Wainwright analyst Andrew Fein expects UTHR to continue outperforming based on: (1) continued strong sales from the Remodulin/Tyvaso/Adcirca franchise in current markets; (2) revenue from new markets, specifically from sales of Remodulin in China (partner Lee’s Pharma currently seeking pricing approval); (3) a 2H14 launch of Orenitram with minimal need for additional support spending, which will be accretive to the UTHR’s bottom line; (4) steady utilization of the company’s stock buyback program; (5) improvements of up to 10% in gross profit, with patent royalty payments to GSK ending in 4Q14; (6) resolution of the Sandoz litigation saga and expectations for a delayed and gentler Remodulin patent expiration slope rather than cliff; (7) investor excitement over the advance of TransCon treprostinil into the clinic in 2H14, with future color on the length of clinical development as an incremental positive (equivalence studies vs. placebo-controlled studies depending on kinetics in humans; currently the analyst does not assign any value to this asset, and views it as a free call option); (8) importantly, expectations of potential accretive business development in the pulmonary space (currently $1.14B in cash).

According to TipRanks, which measures analysts and bloggers success rate based on how their calls perform, analyst Andrew Fein, who covers UTHR, currently has a one-year average return of 7.1% and a 64% success rate, and ranked #1244 out of 3102 analysts.

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