United Therapeutics Reports First Quarter 2016 Financial Results
SILVER SPRING, Md. and RESEARCH TRIANGLE PARK, N.C., April 28, 2016 /PRNewswire/ -- United Therapeutics Corporation (NASDAQ: UTHR) today announced its financial results for the first quarter ended March 31, 2016.
"Our total revenues increased as compared to the same period in the prior year, which shows that our medicines are continuing to reach an increasing number of patients suffering from pulmonary arterial hypertension (PAH) and other life threatening diseases," said Martine Rothblatt, Ph.D., United Therapeutics' Chairman and Co-Chief Executive Officer. "Within our PAH product franchise, Orenitram® continues to be prescribed to a growing number of patients and this momentum underscores our belief in the increasing clinical support for the use of our orally-administered prostacyclin analogues."
Key financial highlights include (in millions, except per share data):
Three Months Ended | Selected | ||||||||
2016 | 2015 | Changes | |||||||
Revenues | $ | 369.0 | $ | 327.5 | 12.7 | % | |||
Net income (loss) | $ | 235.5 | $ | (16.6) | NM | (2) | |||
Non-GAAP earnings(1) | $ | 147.3 | $ | 135.0 | 9.1 | % | |||
Net income (loss), per diluted share | $ | 4.84 | $ | (0.36) | NM | (2) | |||
Non-GAAP earnings, per diluted share(1) | $ | 3.02 | $ | 2.55 | 18.4 | % | |||
(1) See definition of non-GAAP earnings, a non-GAAP financial measure, and a reconciliation of net income to non-GAAP earnings | |||||||||
(2) Calculation is not meaningful. | |||||||||
Financial Results for the Three Months Ended March 31, 2016 | |||||||||
Revenues | |||||||||
The table below summarizes the components of total revenues (dollars in millions): | |||||||||
Three Months Ended | Percentage | ||||||||
2016 | 2015 | Change | |||||||
Net product sales: | |||||||||
Remodulin® | $ | 139.8 | $ | 146.3 | (4.4) | % | |||
Tyvaso® | 102.2 | 113.4 | (9.9) | % | |||||
Adcirca® | 72.6 | 45.3 | 60.3 | % | |||||
Orenitram® | 40.2 | 20.9 | 92.3 | % | |||||
Unituxin® | 14.2 | N/A | |||||||
Other | 1.6 | (100.0) | % | ||||||
Total revenues | $ | 369.0 | $ | 327.5 | 12.7 | % | |||
Revenues for the three months ended March 31, 2016 increased by $41.5 million compared to the same period in 2015. The growth in revenues primarily resulted from: (1) a $27.3 million increase in Adcirca net product sales; (2) a $19.3 million increase in Orenitram net product sales; and (3) a $14.2 million increase in Unituxin net product sales. These revenue increases were partially offset by: (1) an $11.2 million decrease in Tyvaso net product sales; and (2) a $6.5 million decrease in Remodulin 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 | Percentage | ||||||||
2016 | 2015 | Change | |||||||
Category: | |||||||||
Cost of product sales | $ | 12.6 | $ | 11.2 | 12.5 | % | |||
Share-based compensation (benefit) expense | (11.9) | 9.6 | (224.0) | % | |||||
Total cost of product sales | $ | 0.7 | $ | 20.8 | (96.6) | % | |||
Share-based compensation. The decrease in share-based compensation of $21.5 million for the three months ended March 31, 2016, as compared to the same period in 2015, corresponded to a 29 percent decrease in the price of our common stock during the three months ended March 31, 2016, compared to a 33 percent increase 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):
Three Months Ended | Percentage | ||||||||
2016 | 2015 | Change | |||||||
Category: | |||||||||
Research and development expense | $ | 36.8 | $ | 35.2 | 4.5 | % | |||
Share-based compensation (benefit) expense | (37.2) | 75.0 | (149.6) | % | |||||
Total research and development expense | $ | (0.4) | $ | 110.2 | (100.4) | % | |||
Share-based compensation. The decrease in share-based compensation of $112.2 million for the three months ended March 31, 2016, as compared to the same period in 2015, corresponded to a 29 percent decrease in the price of our common stock during the three months ended March 31, 2016, compared to a 33 percent increase in the price of our common stock during the same period in 2015.
Selling, general and administrative expense. The table below summarizes selling, general and administrative expense by major categories (dollars in millions):
Three Months Ended | Percentage | ||||||||
2016 | 2015 | Change | |||||||
Category: | |||||||||
General and administrative | $ | 78.2 | $ | 37.7 | 107.4 | % | |||
Sales and marketing | 22.3 | 23.7 | (5.9) | % | |||||
Share-based compensation (benefit) expense | (95.5) | 149.9 | (163.7) | % | |||||
Total selling, general and administrative expense | $ | 5.0 | $ | 211.3 | (97.6) | % | |||
General and administrative. The increase in general and administrative expense of $40.5 million for the three months ended March 31, 2016, as compared to the same period in 2015, was primarily attributable to $37.0 million of charitable donations to a non-affiliated, non-profit organization that provides financial assistance to patients with PAH. These donations were made during the first quarter of 2016 and represent the full extent of our funding to this non-affiliated, non-profit organization for 2016. Our donations to the same non-affiliated, non-profit organization in 2015 totaled $17.0 million, all of which were paid during the second quarter of that year.
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