United Therapeutics(UTHR) - 2024 Q4 - Annual Results

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]