What Happened?
Shares of biotechnology company United Therapeutics (NASDAQ:UTHR) jumped 11.7% in the afternoon session after the company reported record third-quarter financial results and announced positive outcomes from a key clinical study.
The company posted record revenue of $799.5 million, a 7% increase compared to the previous year, driven by strong sales of its key products. Sales for Tyvaso DPI, a flagship treatment, surged by 22%. While revenue slightly missed some analyst forecasts, earnings per share grew 12% to $7.16. Beyond the financial metrics, United Therapeutics revealed what it called "breakthrough results" from its TETON-2 study focused on idiopathic pulmonary fibrosis. The company stated this development could significantly expand its market and quicken its growth. This promising news, combined with the company's ongoing share repurchases, appeared to capture investor attention, overshadowing the minor revenue miss.
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What Is The Market Telling Us
United Therapeutics’s shares are somewhat volatile and have had 10 moves greater than 5% over the last year. But moves this big are rare even for United Therapeutics and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was about 2 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 up 26.5% since the beginning of the year, and at $455.58 per share, it is trading close to its 52-week high of $456.84 from October 2025. Investors who bought $1,000 worth of United Therapeutics’s shares 5 years ago would now be looking at an investment worth $3,498.
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