United Therapeutics Corporation Fourth Quarter 2024 Corporate Update February 26, 2025 INTRODUCTION Safe Harbor Statement All statements in this presentation are made as of February 26, 2025. We undertake no obligation to publicly update or revise these statements, whether as a result of new information, future events, or otherwise. Statements included in this presentation that are not historical in nature are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of ...

Core Viewpoint - United Therapeutics reported strong fourth-quarter 2024 earnings and revenue growth, driven by increased product sales, although Tyvaso sales fell short of expectations [1][2][4]. Financial Performance - Fourth-quarter 2024 earnings were $6.19 per share, exceeding the Zacks Consensus Estimate of $6.10, representing a 42% year-over-year increase [1]. - Revenues for the quarter reached $735.9 million, surpassing the Zacks Consensus Estimate of $725.3 million, and reflecting a 20% year-over-year growth [2]. - Full-year 2024 earnings were $24.64 per share, beating the Zacks Consensus Estimate of $24.48, with a 124.3% year-over-year increase [9]. - Total revenues for 2024 were $2.89 billion, exceeding the Zacks Consensus Estimate of $2.87 billion, and showing a 24% year-over-year growth [9]. Product Sales Breakdown - Tyvaso sales totaled $415.9 million, a 19% increase year-over-year, although it missed the Zacks Consensus Estimate of $425 million [4]. - Tyvaso dry powder inhalation (DPI) sales were $273.2 million, up 28% year-over-year, while nebulized Tyvaso sales were $142.7 million, up 4% [3]. - Remodulin sales rose 17% year-over-year to $134.5 million, and Orenitram sales increased 28% year-over-year to $107.8 million [5]. - Unituxin sales grew 25% year-over-year to $67.5 million, while Adcirca sales decreased by 31% to $4.7 million [5]. Research and Development - Research and development expenses were $133.8 million, down 12% year-over-year due to prior year costs [8]. - Selling, general, and administrative expenses increased by 27% to $168.5 million, attributed to higher personnel and legal costs [8]. Pipeline and Future Prospects - Key phase III programs include Tyvaso for chronic fibrosing interstitial lung disease and oral ralinepag for PAH [10]. - Top-line data from the TETON-2 study is expected in the second half of 2025, with potential for Tyvaso sales to exceed current levels if approved for idiopathic pulmonary fibrosis [11]. - The FDA has cleared a new drug application for a clinical study on xenotransplantation with investigational UKidney [12].

Group 1 - United Therapeutics reported quarterly earnings of $6.19 per share, exceeding the Zacks Consensus Estimate of $6.10 per share, and up from $4.36 per share a year ago, representing an earnings surprise of 1.48% [1] - The company achieved revenues of $735.9 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.46%, and an increase from $614.7 million year-over-year [2] - Over the last four quarters, United Therapeutics has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Group 2 - The stock's immediate price movement will depend on management's commentary during the earnings call and future earnings expectations [3] - United Therapeutics shares have gained approximately 1.3% since the beginning of the year, matching the S&P 500's gain of 1.3% [3] - The current consensus EPS estimate for the upcoming quarter is $6.88 on revenues of $741.63 million, and for the current fiscal year, it is $27.49 on revenues of $3.14 billion [7] Group 3 - The estimate revisions trend for United Therapeutics is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] - The Medical - Drugs industry, to which United Therapeutics belongs, is currently in the top 50% of Zacks industries, suggesting that stocks in this category tend to outperform those in the bottom 50% [8]

Financial Performance - United Therapeutics reported full year 2024 revenues of $2.88 billion, a 24% increase from 2023[1] - Fourth quarter 2024 total revenues reached $735.9 million, up 20% from $614.7 million in Q4 2023[3] - Net income for the full year 2024 was $1.195 billion, compared to $984.8 million in 2023, reflecting a 21% increase[3] - Total net income per diluted share for 2024 was $24.64, up from $19.81 in 2023[3] - Operating income for the year ended December 31, 2024, was $1,377.0 million, up 16.3% from $1,184.9 million in 2023[31] - Net income for Q4 2024 was $301.3 million, representing a 38.7% increase compared to $217.1 million in Q4 2023[31] - Basic net income per share for the year ended December 31, 2024, was $26.44, an increase of 25.4% from $21.04 in 2023[31] Sales and Product Performance - Tyvaso product sales grew by 31% to $1.620 billion in 2024, driven by increased patient numbers and utilization[7] - The company experienced a 41% increase in Tyvaso DPI sales for the full year, totaling $1.034 billion[4] - Total revenues for Q4 2024 reached $735.9 million, a 19.7% increase from $614.7 million in Q4 2023[31] Research and Development - Research and development expenses for 2024 totaled $481 million, an 18% increase from $408 million in 2023[12] - Research and development expenses for Q4 2024 were $133.8 million, a decrease from $151.4 million in Q4 2023[31] - Research and development expenses increased to $40.2 million for drug delivery device technologies and $8.0 million for ex vivo lung perfusion technology in 2024, compared to 2023[14] Expenses and Liabilities - The cost of sales for the year increased by 19% to $304.3 million, primarily due to growth in Tyvaso DPI revenues[10] - Selling, general, and administrative expenses rose by 27% to $168.5 million for the three months ended December 31, 2024, and by 49% to $709.7 million for the year ended December 31, 2024, compared to 2023[15] - Share-based compensation expense increased by 63% to $27.0 million for the three months ended December 31, 2024, and by 268% to $144.0 million for the year ended December 31, 2024, compared to 2023[19] - The company accrued a liability of $71.1 million related to ongoing litigation with Sandoz Inc. as of December 31, 2024[17] Tax and Equity - The effective income tax rate decreased to approximately 22% for the year ended December 31, 2024, compared to 23% for 2023, due to a decrease in nondeductible acquisition costs[21] - Total stockholders' equity rose to $6,444.0 million in 2024, up from $5,984.8 million in 2023[33] Cash and Assets - Cash, cash equivalents, and marketable investments totaled $4,742.3 million as of December 31, 2024, down from $4,903.9 million in 2023[33] - Total assets increased to $7,364.0 million in 2024, compared to $7,167.0 million in 2023[33] - Total liabilities decreased to $920.0 million in 2024, down from $1,182.2 million in 2023[33] Future Outlook - The company plans to continue expanding its sales and marketing efforts to educate prescribers on its treprostinil products[2] - The company expects continued momentum into 2025 and anticipates readouts from its TETON and ralinepag clinical trials[27] - The increase in sales and marketing expenses for the year ended December 31, 2024, was primarily due to personnel, marketing, and consulting expenses[18] Strategic Initiatives - The company announced FDA clearance for a registration-enabling xenotransplantation study with UKidney[2] - The company aims to innovate for unmet medical needs and expand the availability of transplantable organs as part of its public benefit purpose[25]

Revenue Growth and Sales Performance - Total revenues are primarily driven by sales of commercial products, including Tyvaso DPI, nebulized Tyvaso, and Remodulin, with price increases typically in the single-digit percentages per year [361]. - The company anticipates revenue growth in the near term from continued sales growth of Tyvaso DPI and an increase in the number of patients with pulmonary hypertension associated with interstitial lung disease (PH-ILD) being treated [369]. - Total revenues for 2024 increased by 24% to $2,877.4 million compared to $2,327.5 million in 2023 [376]. - Net product sales of Tyvaso grew by 31% to $1,620.4 million in 2024, up from $1,233.7 million in 2023 [378]. - Tyvaso DPI net product sales increased by $302.5 million in 2024, driven by higher quantities sold and price increases [376]. - Remodulin net product sales rose by 9% to $538.1 million in 2024, primarily due to increased quantities sold in the U.S. [379]. - Orenitram net product sales increased by 21% to $434.3 million in 2024, attributed to higher quantities sold and price increases [380]. - Unituxin net product sales grew by 20% to $238.7 million in 2024, driven by price increases and higher quantities sold [382]. - The U.S. accounted for $2,739.7 million of total revenues in 2024, while the rest of the world contributed $137.7 million [384]. Competition and Market Dynamics - The company is facing increasing competition, including from generic products and new therapies, which may impact sales of its commercial products [357]. - The company faces competitive pressure from established pharmaceutical companies and potential market share erosion from investigational products like Yutrepia [373]. Product Development and Regulatory Approvals - The company is developing a new product, ralinepag, for the treatment of pulmonary arterial hypertension (PAH) and is engaged in research related to organ transplantation technologies [360]. - The timing and outcome of clinical studies and regulatory approvals are critical factors for the company's future product launches and revenue growth [370]. - The FDA cleared the new version of the Remunity Pump, called RemunityPRO, in January 2025, enhancing the delivery options for Remodulin [359]. Financial Performance and Expenses - Total cost of sales for 2024 was $309.7 million, an increase of 20% from $257.5 million in 2023, driven by higher Tyvaso DPI royalty expenses and product costs [388][389]. - Research and development expenses rose to $481.0 million in 2024, an 18% increase from $408.0 million in 2023, primarily due to increased expenditures on manufactured organ projects and licensing payments [390][394]. - Selling, general, and administrative expenses totaled $709.7 million in 2024, a 49% increase from $477.1 million in 2023, largely due to personnel and legal expenses [395][396]. - Share-based compensation expense surged to $144.0 million in 2024, a 268% increase from $39.1 million in 2023, influenced by a 60% rise in stock price and more awards granted [399][400]. - Income tax expense for 2024 was $343.9 million, compared to $289.5 million in 2023, with an effective tax rate of approximately 22% [402]. Cash Flow and Investments - Cash and cash equivalents increased by 41% to $1,697.2 million in 2024 from $1,207.7 million in 2023 [407]. - Total cash and cash equivalents and marketable investments decreased by 3% to $4,742.3 million in 2024 from $4,903.9 million in 2023 [407]. - Net cash provided by operating activities rose by 36% to $1,327.1 million in 2024 compared to $978.0 million in 2023 [408]. - Net cash provided by investing activities increased significantly by 158% to $417.2 million in 2024 from $(719.6) million in 2023 [408]. - Net cash used in financing activities increased by $1,242.9 million in 2024, primarily due to a $1.0 billion share repurchase [411]. Liabilities and Obligations - The outstanding balance under the 2022 Credit Agreement was $300.0 million as of December 31, 2024, classified as a current liability [412]. - Contractual obligations totaled $1,593.0 million as of December 31, 2024, with $1,191.1 million due within one year [413]. - The company had a liability of $140.8 million related to rebates and chargebacks as of December 31, 2024, up from $108.4 million in 2023 [420]. Investment Strategy and Risk Management - The company has invested $3.0 billion in corporate debt securities and U.S. government and agency securities as of December 31, 2024 [424]. - The company maintains a conservative investment approach, focusing on unstructured, highly-rated securities with relatively short maturities to mitigate investment-related risks [425]. - The company actively monitors market conditions and developments specific to the securities in which it invests to manage investment-related risks [425]. - The company acknowledges that while it takes prudent measures to mitigate risks, some risks cannot be fully eliminated due to uncontrollable circumstances [425].

Group 1 - United Therapeutics (NASDAQ: UTHR) is highlighted as a balanced investment opportunity in the biotechnology sector, showcasing high growth rates [1] - The company is positioned favorably for investors looking to enter the biotechnology market [1] Group 2 - The article emphasizes the importance of thorough research and analysis in navigating complex global markets [1]

Core Viewpoint - Analysts project that United Therapeutics (UTHR) will report quarterly earnings of $6.10 per share, reflecting a year-over-year increase of 39.9% and revenues of $725.32 million, which is an 18% increase from the same quarter last year [1]. Earnings Estimates - The consensus EPS estimate has been revised 0.5% higher in the last 30 days, indicating a collective reevaluation by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue Projections - Analysts estimate 'Revenues- Adcirca' at $6.10 million, a decrease of 10.3% year-over-year [5]. - The consensus for 'Revenues- Orenitram' is $109.01 million, indicating a 29.6% increase from the previous year [5]. - 'Revenues- Remodulin' is projected to reach $117.28 million, reflecting a 1.9% year-over-year increase [5]. - 'Revenues- Tyvaso' is expected to be $425.28 million, showing a significant increase of 99% from the year-ago quarter [6]. - 'Revenues- Unituxin' is projected at $59.93 million, a 10.6% increase year-over-year [6]. - 'Revenues- Rest-of-World' is estimated to reach $30.17 million, indicating a 4.7% increase from the prior year [6]. - 'Revenues- United States' is expected to be $681.36 million, reflecting a 16.3% increase from the previous year [7]. Stock Performance - Over the past month, United Therapeutics shares have recorded a return of -2.6%, compared to the Zacks S&P 500 composite's -0.5% change [7]. - Based on its Zacks Rank 4 (Sell), UTHR is expected to underperform the overall market in the upcoming period [7].

Company Performance - United Therapeutics (UTHR) has returned 3.9% year-to-date, outperforming the Medical sector average loss of 3.9% [4] - AnaptysBio, Inc. (ANAB) has returned 8.5% year-to-date, also outperforming the Medical sector [5] Earnings Estimates - The Zacks Consensus Estimate for UTHR's full-year earnings has increased by 4.6% over the past 90 days, indicating stronger analyst sentiment [4] - AnaptysBio, Inc.'s consensus EPS estimate for the current year has increased by 24% over the past three months [5] Industry Performance - United Therapeutics is part of the Medical - Drugs industry, which has lost 9.2% year-to-date, making UTHR's performance better than its industry average [6] - AnaptysBio, Inc. is part of the Medical - Biomedical and Genetics industry, which has moved -12.6% since the beginning of the year [7] Sector and Industry Rankings - The Medical sector is ranked 1 in the Zacks Sector Rank, which includes 16 different groups [2] - United Therapeutics is a member of the Medical - Drugs industry, ranked 63 in the Zacks Industry Rank [6] - AnaptysBio, Inc. falls under the Medical - Biomedical and Genetics industry, ranked 64 in the Zacks Industry Rank [7] Stock Ratings - United Therapeutics currently has a Zacks Rank of 2 (Buy) [3] - AnaptysBio, Inc. also has a Zacks Rank of 2 (Buy) [5]

Stock Comparison - United Therapeutics (UTHR) and Stevanato Group (STVN) are two stocks from the Medical - Drugs sector that are being compared for their attractiveness to value investors [1] Valuation Metrics - UTHR has a forward P/E ratio of 12.64, while STVN has a forward P/E of 41.14 [5] - UTHR has a PEG ratio of 0.93, compared to STVN's PEG ratio of 8.35 [5] - UTHR has a P/B ratio of 2.65, while STVN has a P/B ratio of 5.81 [6] Zacks Rank and Value Grade - UTHR has a Zacks Rank of 2 (Buy), indicating positive revisions to earnings estimates, while STVN has a Zacks Rank of 4 (Sell) [3] - UTHR earns a Value grade of A, while STVN has a Value grade of C [6] Conclusion - UTHR shows stronger estimate revision activity and more attractive valuation metrics compared to STVN, making it the superior option for value investors at this time [7]

Zacks Premium and Style Scores - Zacks Premium offers tools like daily updates of Zacks Rank and Zacks Industry Rank, full access to the Zacks 1 Rank List, Equity Research reports, and Premium stock screens to help investors make informed decisions [1] - Zacks Style Scores rate stocks based on value, growth, and momentum characteristics, assigning ratings from A to F, with A being the best [2][3] - The Style Scores are divided into four categories: Value Score, Growth Score, Momentum Score, and VGM Score, which combines all three styles [3][4][5] - Zacks Rank, combined with Style Scores, helps investors select stocks with the highest probability of outperforming the market [6][8] - Stocks with a Zacks Rank 1 or 2 and Style Scores of A or B offer the best chance of high returns [9][10] United Therapeutics Corporation (UTHR) - United Therapeutics markets four medicines for pulmonary arterial hypertension (PAH): Remodulin, Orenitram, Tyvaso, and Adcirca [11] - UTHR has a Zacks Rank of 3 (Hold) and a VGM Score of A, with a Value Style Score of B due to attractive valuation metrics like a forward P/E ratio of 14.7 [12][13] - Four analysts revised their earnings estimates upwards for fiscal 2024, increasing the Zacks Consensus Estimate by $0.58 to $25.44 per share, with an average earnings surprise of 4.2% [12] - UTHR is a stock to watch due to its solid Zacks Rank and top-tier Value and VGM Style Scores [13][14]