United Therapeutics’ first quarter results came in above Wall Street’s expectations, but the market reacted negatively, with shares declining after earnings. Management attributed the company’s revenue growth primarily to robust demand across its treprostinil portfolio, including Tyvaso, Orenitram, and Remodulin. CEO Martine Rothblatt pointed to “consistent patient demand” and emphasized that strong prescriber adoption, particularly for Tyvaso DPI, remained a key driver. President Michael Benkowitz noted that new patient referrals and shipments for treprostinil products continued to trend higher, demonstrating ongoing relevance even amid new market entrants. Rothblatt highlighted that operational discipline and measured investments supported both pipeline development and commercial growth.
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United Therapeutics (UTHR) Q1 CY2025 Highlights:
- Revenue: $794.4 million vs analyst estimates of $730 million (17.2% year-on-year growth, 8.8% beat)
- Adjusted EPS: $6.63 vs analyst estimates of $6.54 (1.3% beat)
- Adjusted EBITDA: $420.2 million vs analyst estimates of $379 million (52.9% margin, 10.9% beat)
- Operating Margin: 48.2%, down from 52.6% in the same quarter last year
- Market Capitalization: $13.08 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions United Therapeutics’s Q1 Earnings Call
- Joseph Thome (TD Cowen) asked if the UTHYMOKIDNEY program would enroll the same patient population as previous studies and what learnings were applied. EVP Leigh Peterson explained the populations would be similar and highlighted adjustments in immunosuppression protocols based on prior trial experiences.
- Jessica Fye (JPMorgan) inquired about the impact of Medicare Part D redesign on Tyvaso sales in the quarter. President Michael Benkowitz answered that any incremental benefit this year was modest and largely offset by manufacturer obligations under the new rules.
- Roanna Ruiz (Leerink Partners) questioned what drove Tyvaso DPI revenue growth—prescriber demand or price increases—and if gross-to-net impacts would persist. Benkowitz said demand remained the primary driver, with a routine price increase and no material new gross-to-net effects observed in Q1.
- Andreas Argyrides (Oppenheimer) asked about capital deployment plans given a strong cash position and upcoming clinical catalysts. CFO James Edgemond reaffirmed priorities remain internal R&D, manufacturing capacity, targeted acquisitions, and shareholder returns, consistent with past practice.
- Roger Song (Jefferies) asked about the growth trajectory in light of competitive dynamics in PAH. Benkowitz stated management expects to maintain double-digit revenue growth with the existing portfolio, citing under-penetration of prostacyclins and ongoing expansion in PH-ILD (pulmonary hypertension associated with interstitial lung disease).
Catalysts in Upcoming Quarters
In the coming quarters, our analyst team will focus on (1) progress of the TETON clinical trial and potential FDA filing for Tyvaso in idiopathic pulmonary fibrosis, (2) enrollment and early results from the EXPAND, EXTEND, and EXPRESS xenotransplantation studies, and (3) continued adoption trends for Tyvaso DPI and new delivery devices. Updates on competitive responses in the pulmonary hypertension market and strategic capital deployment will also be closely followed.
United Therapeutics currently trades at $289.94, down from $299.93 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).
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