SILVER SPRING, Md. and RESEARCH TRIANGLE PARK, N.C., April 26, 2017 /PRNewswire/ -- United Therapeutics Corporation (NASDAQ: UTHR) today announced its financial results for the first quarter ended March 31, 2017.
“Our quarterly financial growth trends are slower than we would like as we are seeing more patients stay longer on front-line pulmonary arterial hypertension (PAH) therapies,” said Martine Rothblatt, Ph.D., United Therapeutics Chairman and Chief Executive Officer. “Due to the progressive nature of this disease, we believe that this building backlog of PAH patients ultimately will transition to more advanced therapies, such as Orenitram, Tyvaso and Remodulin. As the PAH patient backlog dynamics unfold, we are continuing to invest in our growing product pipeline of late stage programs in cardiopulmonary diseases and oncology and also in regenerative medicine and organ manufacturing to ultimately find a cure for PAH.”
Key financial highlights include (dollars in millions, except per share data):
Three Months Ended | Percentage | ||||||||
2017 | 2016 | Changes | |||||||
Revenues | $ | 370.5 | $ | 369.0 | % | ||||
Net income | $ | 178.6 | $ | 235.5 | (24) | % | |||
Non-GAAP earnings(1) | $ | 165.7 | $ | 141.9 | 17 | % | |||
Net income, per diluted share | $ | 3.89 | $ | 4.84 | (20) | % | |||
Non-GAAP earnings, per diluted share(1) | $ | 3.61 | $ | 2.91 | 24 | % | |||
(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 March 31, 2017 compared to the Three Months Ended March 31, 2016
Revenues
The following table presents the components of total revenues (dollars in millions):
Three Months Ended | Percentage | ||||||||
2017 | 2016 | Change | |||||||
Net product sales: | |||||||||
Remodulin® | $ | 145.8 | $ | 139.8 | 4 | % | |||
Tyvaso® | 87.4 | 102.2 | (14) | % | |||||
Adcirca® | 80.0 | 72.6 | 10 | % | |||||
Orenitram® | 39.3 | 40.2 | (2) | % | |||||
Unituxin® | 18.0 | 14.2 | 27 | % | |||||
Total revenues | $ | 370.5 | $ | 369.0 | % | ||||
Revenues for the three months ended March 31, 2017 increased by $1.5 million compared to the same period in 2016. The growth in revenues resulted from the following: (1) a $7.4 million increase in Adcirca net product sales; (2) a $6.0 million increase in Remodulin net product sales; and (3) a $3.8 million increase in Unituxin net product sales. These increases were partially offset by a $0.9 million decrease in Orenitram net product sales and a $14.8 million decrease in Tyvaso net product sales.
Expenses
Cost of product sales. The table below summarizes cost of product sales by major category (dollars in millions):
Three Months Ended | Percentage | |||||||||
2017 | 2016 | Change | ||||||||
Category: | ||||||||||
Cost of product sales excluding share-based compensation | $ | 15.8 | $ | 12.6 | 25 | % | ||||
Share-based compensation benefit(1) | (1.5) | (11.9) | 87 | % | ||||||
Total cost of product sales | $ | 14.3 | $ | 0.7 | 1,943 | % | ||||
(1) Refer to Share-based compensation (benefit) expense below for discussion. | ||||||||||
Research and development expense. The table below summarizes research and development expense by major category (dollars in millions):
Three Months Ended | Percentage | |||||||||
2017 | 2016 | Change | ||||||||
Category: | ||||||||||
Research and development expense excluding share-based compensation | $ | 41.3 | $ | 36.8 | 12 | % | ||||
Share-based compensation benefit(1) | (5.1) | (37.2) | 86 | % | ||||||
Total research and development expense | $ | 36.2 | $ | (0.4) | 9,150 | % | ||||
(1) Refer to Share-based compensation (benefit) expense below for discussion. | ||||||||||
Selling, general and administrative expense. The table below summarizes selling, general and administrative expense by major category (dollars in millions):
Three Months Ended | Percentage | |||||||||
2017 | 2016 | Change | ||||||||
Category: | ||||||||||
General and administrative excluding share-based compensation | $ | 53.5 | $ | 78.2 | (32) | % | ||||
Sales and marketing excluding share-based compensation | 15.4 | 22.3 | (31) | % | ||||||
Share-based compensation benefit(1) | (12.5) | (95.5) | 87 | % | ||||||
Total selling, general and administrative expense | $ | 56.4 | $ | 5.0 | 1,028 | % | ||||
(1) Refer to Share-based compensation (benefit) expense below for discussion. | ||||||||||
General and administrative. The decrease in general and administrative expense of $24.7 million for the three months ended March 31, 2017, as compared to the same period in 2016, was primarily attributable to a $32.0 million decrease in charitable donations to non-affiliated, non-profit organizations that provide financial assistance to patients with PAH.
Share-based compensation (benefit) expense. The table below summarizes share-based compensation (benefit) expense by major category (dollars in millions):
Three Months Ended | Percentage | ||||||||
