United Therapeutics Reports Third Quarter 2016 Financial Results

SILVER SPRING, Md. and RESEARCH TRIANGLE PARK, N.C., Oct. 27, 2016 /PRNewswire/ -- United Therapeutics Corporation (NASDAQ: UTHR) today announced its financial results for the third quarter ended September 30, 2016.

"Our financial performance continues its strength this quarter," said Martine Rothblatt, Ph.D., United Therapeutics' Chairman and Chief Executive Officer. "Our growth potential is higher than ever, with new programs in our pipeline for pulmonary hypertension associated with emphysema, fibrosis, heart failure and sickle cell disease. In addition we are launching the clinical development of our dinutuximab monoclonal antibody for small cell lung cancer and other high-risk forms of cancer with GD2 expressing cell tumors. Finally, our second generation parenteral drug delivery systems for treprostinil are continuing their march toward anticipated approvals in 2017 for implantable and 2018 for subcutaneous."

Key financial highlights include (dollars in millions, except per share data):



Three Months Ended
September 30,


Percentage




2016


2015


Changes










Revenues


$

408.2


$

386.2


5.7%


Net income


$

161.8


$

464.4


(65.2)%


Non-GAAP earnings(1)


$

201.5


$

174.7


15.3%


Net income, per diluted share


$

3.50


$

9.24


(62.1)%


Non-GAAP earnings, per diluted share(1)


$

4.36


$

3.48


25.3%


____________________

(1)

See definition of non-GAAP earnings, a non-GAAP financial measure, and a reconciliation of net income to non-GAAP earnings below.

Financial Results for the Three Months Ended September 30, 2016

Revenues

The table below summarizes the components of total revenues (dollars in millions):



Three Months Ended
September 30,


Percentage




2016


2015


Change


Net product sales:








Remodulin®


$

152.4


$

150.1


1.5%


Tyvaso®


101.8


121.7


(16.4)%


Adcirca®


96.0


73.8


30.1%


Orenitram®


40.7


34.4


18.3%


Unituxin®


17.3


4.7


268.1%


Other



1.5


(100.0)%


Total revenues


$

408.2


$

386.2


5.7%


Revenues for the three months ended September 30, 2016 increased by $22.0 million, compared to the same period in 2015. The growth in revenues primarily resulted from the following: (1) a $22.2 million increase in Adcirca net product sales; (2) a $12.6 million increase in Unituxin net product sales; (3) a $6.3 million increase in Orenitram net product sales; and (4) a $2.3 million increase in Remodulin net product sales. These increases were partially offset by a $19.9 million decrease in Tyvaso net product sales.

Expenses

Cost of product sales. The table below summarizes cost of product sales by major categories (dollars in millions):



Three Months Ended
September 30,


Percentage




2016


2015


Change


Category:








Cost of product sales


$

20.0


$

15.0


33.3%


Share-based compensation expense (benefit)


3.6


(8.1)


144.4%


Total cost of product sales


$

23.6


$

6.9


242.0%


Cost of product sales. The increase in cost of product sales of $5.0 million for the three months ended September 30, 2016, as compared to the same period in 2015, was attributable to increased sales.

Share-based compensation. The increase in share-based compensation of $11.7 million for the three months ended September 30, 2016, as compared to the same period in 2015, corresponded to an 11 percent increase in the price of our common stock during the three months ended September 30, 2016, compared to a 25 percent decrease in the price of our common stock during the same period in 2015.

Research and development expense. The table below summarizes research and development expense by major category (dollars in millions):



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Three Months Ended
September 30,


Percentage




2016


2015


Change


Category:








Research and development expense


$

37.2


$

40.6


(8.4)%


Share-based compensation expense (benefit)


8.7


(31.0)