What Happened?
Shares of biotechnology company United Therapeutics (NASDAQ: UTHR) fell 7.2% in the afternoon session after the company reported fourth-quarter financial results that missed revenue expectations, overshadowing an earnings beat.
The biotechnology firm announced revenue of $790.2 million for the quarter, which fell short of analysts' consensus estimates that were north of $805 million. While the revenue figure marked a 7% increase from the same period in the previous year, the miss on expectations soured investor sentiment. On the other hand, the company posted adjusted earnings of $7.70 per share, which was higher than the forecasted $7.10. A closer look at product sales showed that while Tyvaso sales grew 12% year-over-year, they still did not meet projections. The mixed report, with strong profits but disappointing sales, prompted the negative market reaction.
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What Is The Market Telling Us
United Therapeutics’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 6 months ago when the stock gained 34.5% on the news that the company announced that its TETON-2 pivotal study of its drug Tyvaso for the treatment of idiopathic pulmonary fibrosis (IPF) met its primary efficacy endpoint. The late-stage study focused on IPF, a progressive lung disease that scars tissue and impairs breathing. The trial demonstrated that the inhaled therapy, Tyvaso, significantly improved lung function compared to a placebo over 52 weeks. Specifically, patients treated with Tyvaso showed a statistically significant 95.6 mL improvement in forced vital capacity (FVC), a key measure of lung health. The positive results were consistent across all patient subgroups, and no new safety concerns were identified. Following the news, analysts at UBS raised their price target on the stock to $415 from $385, maintaining a 'Buy' rating and signaling confidence in the drug's potential.
United Therapeutics is flat since the beginning of the year, and at $500.08 per share, it is trading close to its 52-week high of $535.10 from February 2026. Investors who bought $1,000 worth of United Therapeutics’s shares 5 years ago would now be looking at an investment worth $2,991.
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