This United Therapeutics Analyst Is No Longer Bearish, Expects Mid-Decade $4B Revenue Run Rate

United Therapeutics Corporation (NASDAQ: UTHR) is in a patent dispute with Liquidia Corp (NASDAQ: LQDA).

While the company’s franchise position within the “highly attractive” pulmonary arterial hypertension (PAH) market is unique, its key growth asset faces significant competition, according to Goldman Sachs.

The United Therapeutics Analyst: Chris Shibutani upgraded the rating for United Therapeutics from Sell to Neutral, while raising the price target from $213 to $215.

The United Therapeutics Thesis: The company’s Tyvaso will face headwinds from the anticipated entry of Merck & Co Inc’s (NYSE: MRK) sotatercept and from Liquidia’s Yutrepia, “which is tentatively approved for PAH,” Shibutani said in the upgrade note.

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Liquidia is awaiting the FDA’s decision to potentially expand Yutrepia’s tentatively approved label for PH-ILD (pulmonary hypertension associated with interstitial lung disease), the indication that is the “key growth driver” for United Therapeutics and essential for the company to be in a position to achieve the mid-decade $4 billion revenue run rate objective that its management team had provided in 2023, the analyst stated.

“Efforts are now underway to further expand manufacturing to satisfy potential future needs if Tyvaso’s development in pulmonary fibrosis (TETON studies) is successful,” he added.

UTHR Price Action: Shares of United Therapeutics had risen by 1.64% to $215.83 at the time of publication on Monday.