United Therapeutics Q4 2024: Navigating Growth, Contracting Challenges, and the Hyperion Study Impact

These are the key contradictions discussed in United Therapeutics' latest 2024Q4 earnings call, specifically including: Growth trajectory for the commercial franchise, Contracting Dynamics and IP Moat around Tyvaso, and Impact of the Hyperion Study on the Tyvaso Business:



Record Revenue Performance:
- United Therapeutics reported record revenue for 2024, marking the third consecutive year of record-setting revenue growth.
- This was driven by a relentless drive to deliver a broad array of solutions to patients with rare and underserved diseases, improving their lives.

Clinical and Regulatory Milestones:
- The company received IND clearance for its UKidney clinical trial, the first FDA-cleared registration supporting clinical trial for a xeno organ.
- This trial aims to provide an opportunity to end dialysis for hundreds of thousands of patients with end-stage renal disease who cannot qualify for a human kidney transplant.

Pipeline Progress:
- United Therapeutics completed enrollment for the TETON 1 study in idiopathic pulmonary fibrosis and expects top-line data from the TETON 2 study in the second half of 2025.
- The company is also poised to conclude enrollment in the ADVANCE outcome study for ralinepag later in 2025, allowing for top-line data in 2026.

Commercial Performance:
- Tyvaso revenue saw a 19% increase over the previous year in Q4, driven by record patient shipments and near-record referrals.
- Orenitram revenue grew 28% in Q4, with close to half of Orenitram starts coming from Remodulin transitions, indicating increased use with intermediate-high-risk patients.

Capital Allocation:
- The company invested in CapEx to support manufacturing facilities and acquired real estate to support future commercial manufacturing needs.
- United Therapeutics also returned $1 billion to shareholders through an accelerated share repurchase program, emphasizing disciplined financial management.