Summary
Remodulin expected to continue its revenue trajectory despite generic competition.
The company boasts of a strong research pipeline targeting indications such as PAH and oncology.
Acquisition of SteadyMed has reduced immediate competition for Remodulin's pump system.
Certain company-specific risks cannot be ignored by retail investors.
Headquartered in Silver Spring, Maryland, United Therapeutics (UTHR) is a leading player in the pulmonary arterial hypertension or PAH space. This company has managed to reap the benefits of its Remodulin subcutaneous and intravenous versions for many years in the past. Even now, the company expects to witness an increase in Remodulin sales, despite the anticipated entry of generic competition at the end of 2018.
In Q2 2018, the company reported sales of $444.5 million, which although flat performance on the year over year or YoY basis, was 14% higher as compared to that seen in Q1 2018. In addition to historical purchasing patterns, solid performance of Adcirca also helped boost revenues in Q2 2018.
In this article, I will explain at length why I consider United Therapeutics to be a promising investment opportunity in 2018.
