United Therapeutics Corporation Reports Second Quarter 2023 Financial Results
- Total revenues in Q2 2023 grew 28% YoY to $596.5 million
- Net income increased by 123% to $259.2 million
- Key products driving revenue growth include Tyvaso, Remodulin, and Orenitram
- The company expects to reach a $4 billion annual revenue run rate by mid-decade
- None.
“I’m thrilled that United Therapeutics continues to report double-digit revenue growth and our highest quarterly revenue ever,” said Martine Rothblatt, Ph.D., Chairperson and Chief Executive Officer. “We expect this growth trajectory to continue with our current business as we expect to reach a
“Tyvaso and Orenitram continue to drive our revenue performance with record revenues and the highest number of patients on both therapies,” said Michael Benkowitz, President and Chief Operating Officer. “Feedback on Tyvaso DPI has been overwhelmingly positive, and its convenience and ease of use have revolutionized the way patients with pulmonary hypertension manage their disease.”
Second Quarter 2023 Financial Results |
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Key financial highlights include (dollars in millions, except per share data): |
|||||||||||
|
Three Months Ended
|
|
Dollar
|
|
Percentage
|
||||||
|
2023 |
|
2022 |
|
|
||||||
|
|
|
|
|
|
|
|
||||
Total revenues |
$ |
596.5 |
|
$ |
466.9 |
|
$ |
129.6 |
|
28 |
% |
Net income |
$ |
259.2 |
|
$ |
116.0 |
|
$ |
143.2 |
|
123 |
% |
Net income, per basic share |
$ |
5.53 |
|
$ |
2.56 |
|
$ |
2.97 |
|
116 |
% |
Net income, per diluted share |
$ |
5.24 |
|
$ |
2.41 |
|
$ |
2.83 |
|
117 |
% |
Revenues |
||||||||||||
The table below presents the components of total revenues (dollars in millions): |
||||||||||||
|
Three Months Ended
|
|
Dollar
|
|
Percentage
|
|||||||
|
2023 |
|
2022 |
|
|
|||||||
Net product sales: |
|
|
|
|
|
|
|
|||||
Tyvaso®(1) |
$ |
318.9 |
|
$ |
201.0 |
|
$ |
117.9 |
|
|
59 |
% |
Remodulin®(2) |
|
127.2 |
|
|
132.0 |
|
|
(4.8 |
) |
|
(4 |
)% |
Orenitram® |
|
95.1 |
|
|
79.0 |
|
|
16.1 |
|
|
20 |
% |
Unituxin® |
|
44.3 |
|
|
44.5 |
|
|
(0.2 |
) |
|
— |
% |
Adcirca® |
|
7.5 |
|
|
10.4 |
|
|
(2.9 |
) |
|
(28 |
)% |
Other |
|
3.5 |
|
|
— |
|
|
3.5 |
|
|
NM |
(3) |
Total revenues |
$ |
596.5 |
|
$ |
466.9 |
|
$ |
129.6 |
|
|
28 |
% |
(1) | Net product sales include both the drug product and the respective inhalation devices for both nebulized Tyvaso Inhalation Solution and the dry powder version known as Tyvaso DPI®. |
(2) | Net product sales include sales of infusion devices, such as the Remunity® Pump. |
(3) | Calculation is not meaningful. |
Net product sales from our treprostinil-based products (Tyvaso, Remodulin, and Orenitram) grew by
Expenses |
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Cost of sales. The table below summarizes cost of sales by major category (dollars in millions): |
||||||||||||
|
Three Months Ended
|
|
Dollar
|
|
Percentage
|
|||||||
|
2023 |
|
2022 |
|
|
|||||||
Category: |
|
|
|
|
|
|
|
|||||
Cost of sales |
$ |
63.2 |
|
$ |
27.1 |
|
$ |
36.1 |
|
|
133 |
% |
Share-based compensation expense(1) |
|
0.9 |
|
|
2.6 |
|
|
(1.7 |
) |
|
(65 |
)% |
Total cost of sales |
$ |
64.1 |
|
$ |
29.7 |
|
$ |
34.4 |
|
|
116 |
% |
(1) | Refer to Share-based compensation below. |
Cost of sales, excluding share-based compensation. Cost of sales for the three months ended June 30, 2023 increased as compared to the same period in 2022, primarily due to an increase in Tyvaso DPI royalty expense and product costs, following the commercial launch of the product in June 2022. |
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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
|
|||||||
|
2023 |
|
2022 |
|
|
|||||||
Category: |
|
|
|
|
|
|
|
|||||
External research and development(1) |
$ |
49.3 |
|
$ |
43.9 |
|
$ |
5.4 |
|
|
12 |
% |
Internal research and development(2) |
|
34.7 |
|
|
34.9 |
|
|
(0.2 |
) |
|
(1 |
)% |
Share-based compensation expense(3) |
|
5.0 |
|
|
14.4 |
|
|
(9.4 |
) |
|
(65 |
)% |
Impairments(4) |
|
— |
|
|
— |
|
|
— |
|
|
— |
% |
Other(5) |
|
— |
|
|
0.7 |
|
|
(0.7 |
) |
|
(100 |
)% |
Total research and development expense |
$ |
89.0 |
|
$ |
93.9 |
|
$ |
(4.9 |
) |
|
(5 |
)% |
(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) | Refer to 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 June 30, 2023 and June 30, 2022. |
(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 June 30, 2023 increased as compared to the same period in 2022, primarily due to: (1) increased expenditures related to the TETON 1 and TETON 2 clinical studies of nebulized Tyvaso in patients with idiopathic pulmonary fibrosis; and (2) increased expenditures related to ralinepag clinical studies; partially offset by a decrease in Tyvaso DPI research and development costs following FDA approval of the product in May 2022. |
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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
|
|||||||
|
2023 |
|
2022 |
|
|
|||||||
Category: |
|
|
|
|
|
|
|
|||||
General and administrative |
$ |
102.0 |
|
$ |
76.9 |
|
$ |
25.1 |
|
|
33 |
% |
Sales and marketing |
|
20.1 |
|
|
16.1 |
|
|
4.0 |
|
|
25 |
% |
Share-based compensation expense(1) |
|
7.9 |
|
|
48.5 |
|
|
(40.6 |
) |
|
(84 |
)% |
Total selling, general, and administrative expense |
$ |
130.0 |
|
$ |
141.5 |
|
$ |
(11.5 |
) |
|
(8 |
)% |
(1) | Refer to Share-based compensation below. |
General and administrative, excluding share-based compensation. General and administrative expense for the three months ended June 30, 2023 increased as compared to the same period in 2022, primarily due to: (1) an increase in sponsorships and grants; (2) an increase in personnel expense due to growth in headcount; (3) an increase in branded prescription drug fee expense associated with sales of Tyvaso; and (4) an impairment charge related to property, plant, and equipment; partially offset by decreased expenditures for legal services. | ||||||||||||||
Share-based compensation. The table below summarizes share-based compensation expense by major category (dollars in millions): |
||||||||||||||
|
Three Months Ended
|
|
Dollar
|
|
Percentage
|
|||||||||
|
2023 |
|
2022 |
|
|
|||||||||
Category: |
|
|
|
|
|
|
|
|||||||
Stock options |
$ |
1.6 |
|
|
$ |
5.6 |
|
$ |
(4.0 |
) |
|
(71 |
)% |
|
Restricted stock units |
|
13.6 |
|
|
|
7.4 |
|
|
6.2 |
|
|
84 |
% |
|
Share tracking awards plan (STAP) |
|
(1.9 |
) |
|
|
52.1 |
|
|
(54.0 |
) |
|
(104 |
)% |
|
Employee stock purchase plan |
|
0.5 |
|
|
|
0.4 |
|
|
0.1 |
|
|
25 |
% |
|
Total share-based compensation expense |
$ |
13.8 |
|
|
$ |
65.5 |
|
$ |
(51.7 |
) |
|
(79 |
)% |
The decrease in share-based compensation expense for the three months ended June 30, 2023, as compared to the same period in 2022, was primarily due to an increase in STAP benefit driven by a one percent decrease in our stock price for the three months ended June 30, 2023, as compared to a 31 percent increase in our stock price for the same period in 2022.
Other expense, net. The change in other expense, net for the three months ended June 30, 2023, as compared to the same period in 2022, was primarily due to net unrealized losses on equity securities.
Income tax expense. Income tax expense for the three months ended June 30, 2023 and 2022 was
Webcast
We will host a webcast to discuss our second quarter 2023 financial results on Wednesday, August 2, 2023, at 9:00 a.m. Eastern Time. The webcast can be accessed live via our website at https://ir.unither.com/events-and-presentations/default.aspx. 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 future revenue expectations, including our anticipated
ORENITRAM, REMODULIN, REMUNITY, TYVASO, TYVASO DPI, and UNITUXIN are registered trademarks of United Therapeutics Corporation and/or its subsidiaries.
ADCIRCA is a registered trademark of Eli Lilly and Company.
UNITED THERAPEUTICS CORPORATION |
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CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||
(In millions, except per share data) |
|||||||
|
Three Months Ended
|
||||||
|
2023 |
|
2022 |
||||
|
(Unaudited) |
||||||
Total revenues |
$ |
596.5 |
|
|
$ |
466.9 |
|
Operating expenses: |
|
|
|
||||
Cost of sales |
|
64.1 |
|
|
|
29.7 |
|
Research and development |
|
89.0 |
|
|
|
93.9 |
|
Selling, general, and administrative |
|
130.0 |
|
|
|
141.5 |
|
Total operating expenses |
|
283.1 |
|
|
|
265.1 |
|
Operating income |
|
313.4 |
|
|
|
201.8 |
|
Interest income |
|
37.2 |
|
|
|
6.8 |
|
Interest expense |
|
(14.8 |
) |
|
|
(6.2 |
) |
Other expense, net |
|
(0.6 |
) |
|
|
(51.8 |
) |
Total other income (expense), net |
|
21.8 |
|
|
|
(51.2 |
) |
Income before income taxes |
|
335.2 |
|
|
|
150.6 |
|
Income tax expense |
|
(76.0 |
) |
|
|
(34.6 |
) |
Net income |
$ |
259.2 |
|
|
$ |
116.0 |
|
Net income per common share: |
|
|
|
||||
Basic |
$ |
5.53 |
|
|
$ |
2.56 |
|
Diluted |
$ |
5.24 |
|
|
$ |
2.41 |
|
Weighted average number of common shares outstanding: |
|
|
|
||||
Basic |
|
46.9 |
|
|
|
45.4 |
|
Diluted |
|
49.5 |
|
|
|
48.1 |
|
SELECTED CONSOLIDATED BALANCE SHEET DATA |
||
(Unaudited, in millions) |
||
|
June 30,
|
|
Cash, cash equivalents, and marketable investments |
$ |
4,702.6 |
Total assets |
|
6,681.3 |
Total liabilities |
|
1,270.3 |
Total stockholders’ equity |
|
5,411.0 |
Category: Earnings
View source version on businesswire.com: https://www.businesswire.com/news/home/20230802318354/en/
Dewey Steadman at (202) 919-4097
Email: ir@unither.com
Source: United Therapeutics Corporation
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