SILVER SPRING, Md., Oct. 27, 2011 /PRNewswire/ -- United Therapeutics Corporation (NASDAQ: UTHR) today announced its financial results for the third quarter ended September 30, 2011.
“We achieved over $200 million in revenues this quarter, which reflects the continued strength of our core business,” remarked Martine Rothblatt, Ph.D., United Therapeutics’ Chairman and Chief Executive Officer. “I’m also pleased that our Board of Directors recently authorized a $300 million share repurchase program, which has already begun to return additional value to our shareholders.”
Total revenues for the quarter ended September 30, 2011 were $201.7 million, up from $168.6 million for the quarter ended September 30, 2010. Net income for the quarter ended September 30, 2011 was $84.4 million or $1.45 per basic share, compared to $39.7 million or $0.70 per basic share for the same quarter in 2010. Gross margin from sales was $178.3 million for the quarter ended September 30, 2011, compared to $148.1 million for the same quarter last year. Earnings before non-cash charges(1) for the quarter ended September 30, 2011 were $100.8 million, compared to $99.3 million for the quarter ended September 30, 2010.
Financial Results for the Three Months Ended September 30, 2011
Revenues
The table below summarizes the components of net revenues (dollars in thousands):
Three Months Ended September 30, | ||||||||||
2011 | 2010 | Percentage Change | ||||||||
Cardiopulmonary products: | ||||||||||
Remodulin | $ | 114,918 | $ | 109,584 | 4.9% | |||||
Tyvaso | 66,330 | 48,717 | 36.2% | |||||||
Adcirca | 19,772 | 9,935 | 99.0% | |||||||
Other | 722 | 339 | 113.0% | |||||||
Total net revenues | $ | 201,742 | $ | 168,575 | 19.7% | |||||
Revenues for the quarter ended September 30, 2011 increased by $33.2 million, compared to the quarter ended September 30, 2010. The growth in revenues primarily reflects the increase in the number of patients being prescribed our products.
(1) See definition of earnings before non-cash charges, a non-GAAP financial measure, and a reconciliation of net income to earnings before non-cash charges below.
Expenses
The table below summarizes research and development expense by major project and non-project components (dollars in thousands):
Three Months Ended September 30, | ||||||||||
2011 | 2010 | Percentage Change | ||||||||
Project and non-project component: | ||||||||||
Cardiopulmonary | $ | 74,125 | $ | 17,510 | 323.3% | |||||
Share-based compensation | (22,966) | 14,149 | (262.3) % | |||||||
Other | 8,274 | 8,678 | (4.7) % | |||||||
Total research and development expense | $ | 59,433 | $ | 40,337 | 47.3% | |||||
Cardiopulmonary. The increase in expenses related to our cardiopulmonary projects for the quarter ended September 30, 2011 was attributable largely to increases of $46.3 million in expenses incurred in connection with our July 2011 amended license agreement with Toray Industries, Inc. and $5.0 million incurred in connection with the closing of our license agreement with Pluristem Ltd.
Share-based compensation. The decrease in share-based compensation for the quarter ended September 30, 2011, compared to the same quarter in 2010, corresponded to a reduction in share-based compensation recognized in connection with our share tracking awards plans as a result of the decline in our stock price.
