United Therapeutics Corporation Reports Fourth Quarter and Full Year 2024 Financial Results
“I want to congratulate every Unitherian for their relentless dedication, which has allowed us to deliver a third consecutive year of record revenue,” said Martine Rothblatt, Ph.D., Chairperson and Chief Executive Officer of United Therapeutics. “On top of that, our three-year cascade of clinical and regulatory events is under way: both TETON studies in idiopathic pulmonary fibrosis are enrolled, facilitating data starting the second half of this year; ralinepag, our potentially best-in-class once-daily oral prostacyclin agonist, will generate data next year; and this month we announced FDA clearance to start the first potentially registration-enabling xenotransplantation study with our UKidney.”
Michael Benkowitz, President and Chief Operating Officer of United Therapeutics, added, “Our commercial foundation continues to operate from a place of strength, propelled by robust fourth quarter performance across our product portfolio, which capped a record-setting year. We look forward to continuing this momentum in 2025 as our sales and marketing teams continue their efforts to ensure that prescribers are educated on the benefits of our broad array of treprostinil products, which are widely regarded as a cornerstone for treating pulmonary hypertension.”
Fourth Quarter and Full Year 2024 Financial Results
Key financial highlights include (in millions, except per share data):
|
Three Months Ended
|
|
Year Ended
|
||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
|
|
|
|
|
|
|
|
||||
Total revenues |
$ |
735.9 |
|
$ |
614.7 |
|
$ |
2,877.4 |
|
$ |
2,327.5 |
Net income |
$ |
301.3 |
|
$ |
217.1 |
|
$ |
1,195.1 |
|
$ |
984.8 |
Net income, per basic share |
$ |
6.74 |
|
$ |
4.62 |
|
$ |
26.44 |
|
$ |
21.04 |
Net income, per diluted share |
$ |
6.19 |
|
$ |
4.36 |
|
$ |
24.64 |
|
$ |
19.81 |
Revenues
The table below presents the components of total revenues (dollars in millions):
|
Three Months Ended
|
|
Dollar
|
|
Percentage
|
|
Year Ended
|
|
Dollar
|
|
Percentage
|
||||||||||||||
|
2024 |
|
2023 |
|
|
|
2024 |
|
2023 |
|
|
||||||||||||||
Net product sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Tyvaso DPI®(1) |
$ |
273.2 |
|
$ |
213.7 |
|
$ |
59.5 |
|
|
28 |
% |
|
$ |
1,033.6 |
|
$ |
731.1 |
|
$ |
302.5 |
|
|
41 |
% |
Nebulized Tyvaso®(1) |
|
142.7 |
|
|
136.9 |
|
|
5.8 |
|
|
4 |
% |
|
|
586.8 |
|
|
502.6 |
|
|
84.2 |
|
|
17 |
% |
Total Tyvaso |
|
415.9 |
|
|
350.6 |
|
|
65.3 |
|
|
19 |
% |
|
|
1,620.4 |
|
|
1,233.7 |
|
|
386.7 |
|
|
31 |
% |
Remodulin®(2) |
|
134.5 |
|
|
115.1 |
|
|
19.4 |
|
|
17 |
% |
|
|
538.1 |
|
|
494.8 |
|
|
43.3 |
|
|
9 |
% |
Orenitram® |
|
107.8 |
|
|
84.1 |
|
|
23.7 |
|
|
28 |
% |
|
|
434.3 |
|
|
359.4 |
|
|
74.9 |
|
|
21 |
% |
Unituxin® |
|
67.5 |
|
|
54.2 |
|
|
13.3 |
|
|
25 |
% |
|
|
238.7 |
|
|
198.9 |
|
|
39.8 |
|
|
20 |
% |
Adcirca® |
|
4.7 |
|
|
6.8 |
|
|
(2.1 |
) |
|
(31 |
)% |
|
|
23.8 |
|
|
28.9 |
|
|
(5.1 |
) |
|
(18 |
)% |
Other |
|
5.5 |
|
|
3.9 |
|
|
1.6 |
|
|
41 |
% |
|
|
22.1 |
|
|
11.8 |
|
|
10.3 |
|
|
87 |
% |
Total revenues |
$ |
735.9 |
|
$ |
614.7 |
|
$ |
121.2 |
|
|
20 |
% |
|
$ |
2,877.4 |
|
$ |
2,327.5 |
|
$ |
549.9 |
|
|
24 |
% |
(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. |
Fourth Quarter 2024 Compared to Fourth Quarter 2023. Total Tyvaso revenues grew by 19 percent to
Full Year 2024 Compared to Full Year 2023. Total Tyvaso revenues grew by 31 percent to
The table below presents the breakdown of total revenues between
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|||||||||||||||||||||||||||||||||
|
2024 |
|
2023 |
|
2024 |
2023 |
||||||||||||||||||||||||||||||
|
|
ROW |
Total |
|
|
ROW |
Total |
|
|
ROW |
Total |
|
ROW |
Total |
||||||||||||||||||||||
Net product sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Tyvaso DPI(1) |
$ |
272.8 |
$ |
0.4 |
$ |
273.2 |
|
$ |
213.7 |
$ |
— |
$ |
213.7 |
|
$ |
1,033.2 |
$ |
0.4 |
$ |
1,033.6 |
$ |
731.1 |
$ |
— |
$ |
731.1 |
||||||||||
Nebulized Tyvaso(1) |
|
136.4 |
|
6.3 |
|
142.7 |
|
|
123.7 |
|
13.2 |
|
136.9 |
|
|
545.5 |
|
41.3 |
|
586.8 |
|
477.1 |
|
25.5 |
|
502.6 |
||||||||||
Total Tyvaso |
|
409.2 |
|
6.7 |
|
415.9 |
|
|
337.4 |
|
13.2 |
|
350.6 |
|
|
1,578.7 |
|
41.7 |
|
1,620.4 |
|
1,208.2 |
|
25.5 |
|
1,233.7 |
||||||||||
Remodulin(2) |
|
118.0 |
|
16.5 |
|
134.5 |
|
|
106.3 |
|
8.8 |
|
115.1 |
|
|
464.2 |
|
73.9 |
|
538.1 |
|
414.6 |
|
80.2 |
|
494.8 |
||||||||||
Orenitram |
|
107.8 |
|
— |
|
107.8 |
|
|
84.1 |
|
— |
|
84.1 |
|
|
434.3 |
|
— |
|
434.3 |
|
359.4 |
|
— |
|
359.4 |
||||||||||
Unituxin |
|
61.8 |
|
5.7 |
|
67.5 |
|
|
48.7 |
|
5.5 |
|
54.2 |
|
|
219.6 |
|
19.1 |
|
238.7 |
|
181.3 |
|
17.6 |
|
198.9 |
||||||||||
Adcirca |
|
4.7 |
|
— |
|
4.7 |
|
|
6.8 |
|
— |
|
6.8 |
|
|
23.8 |
|
— |
|
23.8 |
|
28.9 |
|
— |
|
28.9 |
||||||||||
Other |
|
4.2 |
|
1.3 |
|
5.5 |
|
|
2.6 |
|
1.3 |
|
3.9 |
|
|
19.1 |
|
3.0 |
|
22.1 |
|
9.8 |
|
2.0 |
|
11.8 |
||||||||||
Total revenues |
$ |
705.7 |
$ |
30.2 |
$ |
735.9 |
|
$ |
585.9 |
$ |
28.8 |
$ |
614.7 |
|
$ |
2,739.7 |
$ |
137.7 |
$ |
2,877.4 |
$ |
2,202.2 |
$ |
125.3 |
$ |
2,327.5 |
||||||||||
(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
|
|
Year Ended
|
|
Dollar
|
|
Percentage
|
||||||||||||
|
2024 |
|
2023 |
|
|
|
2024 |
|
2023 |
|
|
||||||||||||
Category: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cost of sales |
$ |
74.8 |
|
$ |
70.1 |
|
$ |
4.7 |
|
7 |
% |
|
$ |
304.3 |
|
$ |
255.1 |
|
$ |
49.2 |
|
19 |
% |
Share-based compensation expense(1) |
|
1.1 |
|
|
0.9 |
|
|
0.2 |
|
22 |
% |
|
|
5.4 |
|
|
2.4 |
|
|
3.0 |
|
125 |
% |
Total cost of sales |
$ |
75.9 |
|
$ |
71.0 |
|
$ |
4.9 |
|
7 |
% |
|
$ |
309.7 |
|
$ |
257.5 |
|
$ |
52.2 |
|
20 |
% |
(1) |
See Share-based compensation below. |
Cost of sales, excluding share-based compensation. The increase in cost of sales for the year ended December 31, 2024, as compared to the same period in 2023, was primarily due to an increase in Tyvaso DPI royalty expense and product costs driven by growth in Tyvaso DPI revenues.
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
|
|
Year Ended
|
|
Dollar
|
|
Percentage
|
||||||||||||||
|
2024 |
|
2023 |
|
|
|
2024 |
|
2023 |
|
|
||||||||||||||
Category: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
External research and development(1) |
$ |
63.7 |
|
$ |
50.4 |
|
$ |
13.3 |
|
|
26 |
% |
|
$ |
217.5 |
|
$ |
192.0 |
|
$ |
25.5 |
|
|
13 |
% |
Internal research and development(2) |
|
50.3 |
|
|
43.2 |
|
|
7.1 |
|
|
16 |
% |
|
|
183.6 |
|
|
146.6 |
|
|
37.0 |
|
|
25 |
% |
Share-based compensation expense(3) |
|
6.7 |
|
|
5.7 |
|
|
1.0 |
|
|
18 |
% |
|
|
29.1 |
|
|
15.6 |
|
|
13.5 |
|
|
87 |
% |
Other(4) |
|
13.1 |
|
|
52.1 |
|
|
(39.0 |
) |
|
(75 |
)% |
|
|
50.8 |
|
|
53.8 |
|
|
(3.0 |
) |
|
(6 |
)% |
Total research and development expense |
$ |
133.8 |
|
$ |
151.4 |
|
$ |
(17.6 |
) |
|
(12 |
)% |
|
$ |
481.0 |
|
$ |
408.0 |
|
$ |
73.0 |
|
|
18 |
% |
(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) |
Other primarily includes upfront fees and milestone payments to third parties under license agreements related to development-stage products, adjustments to the fair value of our contingent consideration obligations, and costs to acquire certain in-process research and development (IPR&D) assets. During the year ended December 31, 2024, we recorded |
Research and development, excluding share-based compensation. The decrease in research and development expense for the quarter ended December 31, 2024, as compared to the same period in 2023, was primarily due to IPR&D expense we recorded in connection with the acquisition of IVIVA during the quarter ended December 31, 2023; partially offset by increased expenditures related to manufactured organ and organ alternative projects and upfront non-refundable licensing payments related to ex vivo lung perfusion technology.
The increase in research and development expense for the year ended December 31, 2024, as compared to the same period in 2023, was due to: (1) increased expenditures related to manufactured organ and organ alternative projects; (2) non-refundable licensing payments for drug delivery device technologies and ex vivo lung perfusion technology; and (3) increased expenditures related to the TETON studies of nebulized Tyvaso in patients with idiopathic pulmonary fibrosis and progressive pulmonary fibrosis. These increases were partially offset by the impact of an IPR&D expense recorded during the year ended December 31, 2023 in connection with the acquisition of IVIVA, which expense did not recur in 2024.
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
|
|
Year Ended
|
|
Dollar
|
|
Percentage
|
||||||||||||
|
2024 |
|
2023 |
|
|
|
2024 |
|
2023 |
|
|
||||||||||||
Category: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
General and administrative(1) |
$ |
116.3 |
|
$ |
98.1 |
|
$ |
18.2 |
|
19 |
% |
|
$ |
432.8 |
|
$ |
374.2 |
|
$ |
58.6 |
|
16 |
% |
Litigation accrual |
|
6.0 |
|
|
— |
|
|
6.0 |
|
NM(3) |
|
|
71.1 |
|
|
— |
|
|
71.1 |
|
NM(3) |
||
Sales and marketing |
|
27.0 |
|
|
24.1 |
|
|
2.9 |
|
12 |
% |
|
|
96.3 |
|
|
81.8 |
|
|
14.5 |
|
18 |
% |
Share-based compensation expense(2) |
|
19.2 |
|
|
10.0 |
|
|
9.2 |
|
92 |
% |
|
|
109.5 |
|
|
21.1 |
|
|
88.4 |
|
419 |
% |
Total selling, general, and administrative expense |
$ |
168.5 |
|
$ |
132.2 |
|
$ |
36.3 |
|
27 |
% |
|
$ |
709.7 |
|
$ |
477.1 |
|
$ |
232.6 |
|
49 |
% |
(1) |
Excluding litigation accrual. See Litigation accrual section below. |
(2) |
See Share-based compensation below. |
(3) |
Calculation is not meaningful. |
General and administrative, excluding litigation accrual and share-based compensation. The increase in general and administrative expense for the quarter and year ended December 31, 2024, as compared to the same periods in 2023, was primarily due to increases in: (1) personnel expense due to growth in headcount; (2) legal expenses related to litigation matters; and (3) consulting expenses.
Litigation accrual. As of December 31, 2024, we accrued a liability of
Sales and marketing, excluding share-based compensation. The increase in sales and marketing expense for the year ended December 31, 2024, as compared to the same period in 2023, was primarily due to increases in: (1) personnel expense due to growth in headcount; (2) marketing expenses; and (3) consulting expenses.
Share-based compensation. The table below summarizes share-based compensation expense by major category (dollars in millions):
|
Three Months Ended
|
|
Dollar
|
|
Percentage
|
|
Year Ended
|
|
Dollar
|
|
Percentage
|
||||||||||||||
|
2024 |
|
2023 |
|
|
|
2024 |
|
2023 |
|
|
||||||||||||||
Category: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Stock options |
$ |
8.0 |
|
$ |
2.9 |
|
|
$ |
5.1 |
|
176 |
% |
|
$ |
29.8 |
|
$ |
15.4 |
|
|
$ |
14.4 |
|
94 |
% |
Restricted stock units |
|
17.8 |
|
|
14.1 |
|
|
|
3.7 |
|
26 |
% |
|
|
79.7 |
|
|
52.4 |
|
|
|
27.3 |
|
52 |
% |
Share tracking awards plan (STAP) |
|
0.6 |
|
|
(0.9 |
) |
|
|
1.5 |
|
167 |
% |
|
|
32.3 |
|
|
(30.7 |
) |
|
|
63.0 |
|
205 |
% |
Employee stock purchase plan |
|
0.6 |
|
|
0.5 |
|
|
|
0.1 |
|
20 |
% |
|
|
2.2 |
|
|
2.0 |
|
|
|
0.2 |
|
10 |
% |
Total share-based compensation expense |
$ |
27.0 |
|
$ |
16.6 |
|
|
$ |
10.4 |
|
63 |
% |
|
$ |
144.0 |
|
$ |
39.1 |
|
|
$ |
104.9 |
|
268 |
% |
The increase in share-based compensation expense for the quarter ended December 31, 2024, as compared to the same period in 2023, was primarily due to: (1) an increase in stock option expense due to a greater number of awards granted in 2024, as compared to the same period in 2023; (2) an increase in restricted stock unit expense due to a greater number of awards remaining outstanding in 2024, as compared to the same period in 2023; and (3) an increase in STAP expense driven by a two percent decrease in our stock price during the quarter ended December 31, 2024, as compared to a three percent decrease in our stock price for the same period in 2023. The increase in share-based compensation expense for the year ended December 31, 2024, as compared to the same period in 2023, was primarily due to: (1) an increase in STAP expense driven by a 60 percent increase in our stock price during 2024, as compared to a 21 percent decrease in our stock price during 2023; (2) an increase in restricted stock unit expense due to a greater number of awards granted and remaining outstanding in 2024, as compared to the same period in 2023; and (3) an increase in stock option expense due to a greater number of awards granted in 2024, as compared to the same period in 2023.
Other (expense) income, net. The change in other (expense) income, net for the year ended December 31, 2024, as compared to the same period in 2023, was primarily due to net unrealized gains on equity securities.
Income tax expense. Income tax expense was
Share repurchase. In March 2024, we entered into an accelerated share repurchase agreement (the ASR agreement) with Citibank, N.A. (Citi). Under the ASR agreement, we made an aggregate upfront payment of
The share repurchase under the ASR agreement was divided into two tranches, resulting in upfront payments of
Webcast
We will host a webcast to discuss our fourth quarter and full year 2024 financial results on Wednesday, February 26, 2025, at 9:00 a.m. Eastern Time. The webcast can be accessed live via our website at https://ir.unither.com/events-and-presentations. A replay of the webcast will also be available at the same location on our website.
United Therapeutics: Enabling Inspiration
At United Therapeutics, our vision and mission are one. We use our enthusiasm, creativity, and persistence to innovate for the unmet medical needs of our patients and to benefit our other stakeholders. We are bold and unconventional. We have fun; we do good. We are the first publicly-traded biotech or pharmaceutical company to take the form of a public benefit corporation (PBC). Our public benefit purpose is to provide a brighter future for patients through (a) the development of novel pharmaceutical therapies; and (b) technologies that expand the availability of transplantable organs.
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 anticipated readouts of our TETON and ralinepag clinical trials; our plans to commence a clinical trial of our UKidney product, and that it may be registration-enabling; our expectation that ralinepag may be a best-in-class once-daily prostacyclin agonist; our expectation that our momentum will continue into 2025; our expectations concerning our ultimate liability resulting from our litigation with Sandoz Inc., including our expectation that the amount of any loss in excess of our
ORENITRAM, REMODULIN, REMUNITY, TYVASO, TYVASO DPI, and UNITUXIN are registered trademarks of United Therapeutics Corporation and/or its subsidiaries.
UKIDNEY is a trademark of United Therapeutics Corporation and/or its subsidiaries.
ADCIRCA is a registered trademark of Eli Lilly and Company.
UNITED THERAPEUTICS CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per share data) |
|||||||||||||||
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
(Unaudited) |
|
|
|
|
||||||||||
Total revenues |
$ |
735.9 |
|
|
$ |
614.7 |
|
|
$ |
2,877.4 |
|
|
$ |
2,327.5 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Cost of sales |
|
75.9 |
|
|
|
71.0 |
|
|
|
309.7 |
|
|
|
257.5 |
|
Research and development |
|
133.8 |
|
|
|
151.4 |
|
|
|
481.0 |
|
|
|
408.0 |
|
Selling, general, and administrative |
|
168.5 |
|
|
|
132.2 |
|
|
|
709.7 |
|
|
|
477.1 |
|
Total operating expenses |
|
378.2 |
|
|
|
354.6 |
|
|
|
1,500.4 |
|
|
|
1,142.6 |
|
Operating income |
|
357.7 |
|
|
|
260.1 |
|
|
|
1,377.0 |
|
|
|
1,184.9 |
|
Interest income |
|
49.3 |
|
|
|
51.0 |
|
|
|
199.1 |
|
|
|
162.7 |
|
Interest expense |
|
(7.9 |
) |
|
|
(15.1 |
) |
|
|
(42.9 |
) |
|
|
(59.3 |
) |
Other (expense) income, net |
|
(2.6 |
) |
|
|
(0.6 |
) |
|
|
5.8 |
|
|
|
(14.0 |
) |
Total other income, net |
|
38.8 |
|
|
|
35.3 |
|
|
|
162.0 |
|
|
|
89.4 |
|
Income before income taxes |
|
396.5 |
|
|
|
295.4 |
|
|
|
1,539.0 |
|
|
|
1,274.3 |
|
Income tax expense |
|
(95.2 |
) |
|
|
(78.3 |
) |
|
|
(343.9 |
) |
|
|
(289.5 |
) |
Net income |
$ |
301.3 |
|
|
$ |
217.1 |
|
|
$ |
1,195.1 |
|
|
$ |
984.8 |
|
Net income per common share: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
6.74 |
|
|
$ |
4.62 |
|
|
$ |
26.44 |
|
|
$ |
21.04 |
|
Diluted |
$ |
6.19 |
|
|
$ |
4.36 |
|
|
$ |
24.64 |
|
|
$ |
19.81 |
|
Weighted average number of common shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
44.7 |
|
|
|
47.0 |
|
|
|
45.2 |
|
|
|
46.8 |
|
Diluted |
|
48.7 |
|
|
|
49.8 |
|
|
|
48.5 |
|
|
|
49.7 |
|
SELECTED CONSOLIDATED BALANCE SHEET DATA (In millions) |
|||||
|
December 31, |
||||
|
2024 |
|
2023 |
||
Cash, cash equivalents, and marketable investments |
$ |
4,742.3 |
|
$ |
4,903.9 |
Total assets |
|
7,364.0 |
|
|
7,167.0 |
Total liabilities |
|
920.0 |
|
|
1,182.2 |
Total stockholders' equity |
|
6,444.0 |
|
|
5,984.8 |
Category: Earnings
View source version on businesswire.com: https://www.businesswire.com/news/home/20250226509986/en/
Dewey Steadman at (202) 919-4097 (media/investors)
Harry Silvers at (301) 578-1401 (investors)
https://ir.unither.com/contact-ir
Source: United Therapeutics Corporation