Biotechnology company United Therapeutics (NASDAQ: UTHR) fell short of the markets revenue expectations in Q3 CY2025, but sales rose 6.8% year on year to $799.5 million. Its GAAP profit of $7.16 per share was 2.3% above analysts’ consensus estimates.
Is now the time to buy UTHR? Find out in our full research report (it’s free for active Edge members).
United Therapeutics (UTHR) Q3 CY2025 Highlights:
- Revenue: $799.5 million vs analyst estimates of $812.2 million (6.8% year-on-year growth, 1.6% miss)
- EPS (GAAP): $7.16 vs analyst estimates of $7.00 (2.3% beat)
- Adjusted EBITDA: $450.3 million vs analyst estimates of $431 million (56.3% margin, 4.5% beat)
- Operating Margin: 48.6%, up from 45.8% in the same quarter last year
- Market Capitalization: $20.59 billion
StockStory’s Take
United Therapeutics delivered a quarter that was well received by the market despite missing revenue expectations, as operational progress and clinical milestones took center stage. Management credited sales growth to continued expansion of the Tyvaso and Orenitram franchises, highlighting robust demand for Tyvaso DPI and minimal impact from new competition. CEO Martine Rothblatt emphasized that three Phase III trials reached full enrollment and that recently unblinded pulmonary fibrosis results represented “the best results for that condition ever reported by anyone, anywhere.” The quarter also benefited from commercial execution and new product features designed to enhance patient convenience.
Looking ahead, United Therapeutics is focused on leveraging recent clinical data and product innovations to expand its addressable market, particularly in pulmonary fibrosis. Management believes that the TETON 2 study results for inhaled treprostinil could significantly broaden the company’s reach into respiratory diseases. Dr. Leigh Peterson, Executive Vice President of Product Development, noted that regulatory discussions are underway to potentially accelerate approvals, and new high-dose Tyvaso DPI cartridges are expected to drive further adoption. The company is also actively exploring partnership opportunities to extend its therapies into international markets.
Key Insights from Management’s Remarks
Management credited steady growth in core products, major clinical trial progress, and new product launches as central to the quarter’s performance and optimism on future expansion.
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Tyvaso DPI demand: The Tyvaso DPI inhaled therapy continued to show strong patient demand, with management noting that the product’s convenience and dosing flexibility remained key reasons for prescriber adoption. The upcoming launch of an 80-microgram cartridge, enabling higher doses in a single breath, is expected to further differentiate Tyvaso DPI from competitors, particularly YUTREPIA.
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Orenitram resilience: Orenitram, an oral therapy for pulmonary arterial hypertension, maintained steady growth, supported by ongoing physician education initiatives and expanding prescriber breadth. This product remains a core contributor to the company’s commercial momentum.
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Pipeline progress: United Therapeutics fully enrolled three Phase III clinical trials during the quarter, including the TETON 2 study for idiopathic pulmonary fibrosis (IPF). Management highlighted that the unblinded results from TETON 2 were unprecedented, positioning the company as a leader in IPF treatment development.
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Competitive landscape: Leadership indicated that new entrants, such as YUTREPIA and sotatercept, have actually increased overall disease awareness, expanding the addressable market and benefiting Tyvaso DPI sales. The expected synergy between therapies, including potential combinations with ralinepag, was highlighted as a future growth lever.
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RemunityPRO pump launch: The quarter saw the introduction of the RemunityPRO pump for Remodulin, which features user-friendly design improvements. This device aims to improve the patient experience and facilitate at-home initiation of therapy, potentially expanding the eligible patient base.
Drivers of Future Performance
Management expects future growth to be driven by expanded indications, new product formats, and strategic partnerships, while monitoring regulatory milestones and competitive dynamics.
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Expansion into pulmonary fibrosis: The company is prioritizing regulatory filings and market preparation for Tyvaso DPI in idiopathic pulmonary fibrosis, banking on positive TETON 2 data. Management cited ongoing discussions with the FDA and anticipated broader adoption as key sources of potential revenue growth.
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Product innovation: The introduction of higher-dose Tyvaso DPI cartridges and combination dosing kits is intended to improve both patient convenience and physician prescribing patterns. Executive Vice President Patrick Poisson expects these enhancements to drive increased market share and sustained adoption.
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Partnership and international growth: CEO Martine Rothblatt discussed the possibility of new partnerships, particularly with large pharmaceutical firms focused on pulmonary disease, to expand United Therapeutics’ geographic reach. Management views international collaborations as a pathway to diversify revenue streams and maximize the impact of recent clinical results.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be tracking (1) regulatory progress for Tyvaso DPI in idiopathic pulmonary fibrosis, (2) adoption rates and prescriber feedback following the high-dose cartridge launch, and (3) advancement of the ralinepag outcomes trial and potential business development activity. Execution on international partnerships and updates from additional clinical studies will also be key indicators of United Therapeutics’ future trajectory.
United Therapeutics currently trades at $450, up from $414.93 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free for active Edge members).
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