Auriga Assumes Coverage Of UTHR

Auriga has assumed coverage of United Therapeutics Corp. UTHR at a Buy rating and with a price target of $90. According to Auriga, “We are assuming coverage of United Therapeutics (UTHR) with a Buy rating and a $90 price target. UTHR reported 1Q11 revenues that were once again below both our and the Street estimates. Management blamed a number of factors including weather, inventory drawdowns, and general lumpiness. Specifically, IV/SQ Remodulin grew 8% Y/Y and was up 1% sequentially. However, Tyvaso was flat sequentially for the third straight quarter and Adcirca declined 12% sequentially. UTHR reiterated timelines for the closely watched FREEDOM-M trial (read out in June) and FREEDOM-C2 (read out in September). UTHR provided initial guidance for 2011, 2012 and 2013 of $750MM, $875MM and $1,000MM (+/- 5%) -- levels modestly below Street expectations (do not include oral Remodulin). Overall, we view the weakness around the quarter as a buying opportunity ahead of the June release of the potentially transformative FREEDOM-M data. We reiterate our Buy and $90 price target.” UTHR closed yesterday at $67.66.