Why United Therapeutics Shares Are Falling Today

United Therapeutics Corporation's UTHR Q1 revenues grew 10% Y/Y to $506.9 million, missing the consensus of $510.77 million.

The company reported Q1 EPS of $4.86, beating the consensus of $4.47.

Net product sales from treprostinil-based products grew by 16% Y/Y. The growth in Tyvaso revenues resulted primarily from an increase in quantities sold driven by the launch of sales of Tyvaso DPI in June 2022.

"We are extremely pleased with the underlying strength of our Tyvaso franchise, highlighted by record referrals and starts during the quarter and net patient additions in line with prior quarters," said Michael Benkowitz, President & COO. 

"Our other core products also performed well, led by Orenitram, which achieved record revenues in the first quarter," Benkowitz added.

Operating income fell from $288 million to $284.4 million, with margins contracting from 62.4% to 56.1%.

The company's cost of sales almost doubled to $52.7 million due to an increase in Tyvaso DPI royalty expense and product costs following the product's commercial launch in June 2022.

R&D expenses increased 20% to $82.9 million, primarily due to increased expenditures related to the TETON studies of Tyvaso in patients with idiopathic pulmonary fibrosis.

Price Action: UTHR shares are down 5.24% at $246.80 on the last check Wednesday.