United Therapeutics Corp.'s (UTHR) second quarter earnings of $1.43 per share were well above the year-ago earnings of $1.19 and the Zacks Consensus Estimate of $1.12. Higher revenues led to the improvement in earnings. The company maintained its guidance for 2012. We believe the company is well-positioned to gain share in the pulmonary arterial hypertension (:PAH) market.
Lead product Remodulin continues to look very strong in both the intravenous (:IV) and subcutaneous (:SC) forms. With the approval of Adcirca and Tyvaso, the company has a varied range of therapies available for the treatment of PAH. We believe the company's PAH product portfolio will drive strong top-and bottom-line growth.
We maintain our Outperform recommendation on United Therapeutics, which carries a Zacks #2 Rank (short-term Buy rating). We have raised our target price by $5 to $70 based on the strong second quarter results. Our new price target is based on 14.0x our 2012 EPS estimate.
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