United Therapeutics Q2 Earnings Beat Estimates, Revenues Miss Mark

Revenues in the quarter totaled $783.3 million, which missed the Zacks Consensus Estimate of $803 million. Top line declined 2% year over year.

Year to date, shares of United Therapeutics have rallied 6.5% against the industry’s 3.9% decline.

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UTHR's Q2 Earnings in Detail

A key driver of the company’s top line is Tyvaso products. United Therapeutics markets two versions of Tyvaso, Tyvaso dry powder inhalation (DPI) and nebulized Tyvaso. Both versions are approved for the treatment of PAH and pulmonary hypertension associated with interstitial lung disease (PH-ILD) indications.

Combined Tyvaso sales totaled $452.6 million, down 4% year over year due to lower revenues from nebulized Tyvaso. Tyvaso sales fell short of the Zacks Consensus Estimate of $469 million.

Tyvaso DPI generated revenues of $326.6 million, climbing 4% year over year due to an increase in patient demand and some pricing benefits.

Revenues from nebulized Tyvaso (treprostinil) were $126 million, down 18%, largely due to reduced U.S. demand despite modest price increases.

Sales of Orenitram rose 1% year over year to $125.7 million.

Remodulin (including Remunity Pump) sales declined 6% year over year to $126.3 million primarily due to lower demand in the United States despite an increase in international revenues.

Unituxin sales were up 12% year over year to $65.2 million.

Adcirca sales were $6.7 million, roughly consistent with the prior-year quarter.

Research and development expenses were $146.3 million in the quarter, up 9% year over year, mainly due to higher spending on clinical programs and a rise in the fair value of contingent consideration liabilities related to acquired manufactured organ and organ alternative projects.

Selling, general and administrative expenses declined 3% year over year to $206.7 million in the quarter.

As of June 30, 2026, UTHR had cash, cash equivalents and investments of $3.8 billion compared with $3.5 billion as of March 31, 2026.

UTHR's Pipeline & Other Updates

United Therapeutics is pursuing significant label expansion opportunities for Tyvaso in broader pulmonary fibrosis settings, including idiopathic pulmonary fibrosis (IPF) and progressive pulmonary fibrosis (PPF). The company's IPF development program consists of two late-stage parallel studies, TETON-1 (conducted in the United States and Canada) and TETON-2 (internationally).

The TETON studies evaluated nebulized Tyvaso for the treatment of patients with IPF, a devastating lung disease with limited treatment options. Based on data from the studies, UTHR submitted a supplemental new drug application to the FDA in June for the approval of nebulized Tyvaso in IPF. If the drug is approved for this indication, United Therapeutics expects Tyvaso sales in the IPF indication to exceed the drug’s sales in the PAH indication.

Patient enrollment is ongoing in the phase III TETON PPF study evaluating the drug in patients with PPF. Top-line data is expected in the second half of 2027.   

The company is developing Tresmi, an investigational inhaled treprostinil solution delivered via a soft mist inhaler for the treatment of PAH and PH-ILD. The therapy is designed to reduce coughing by up to 90% compared with Tyvaso DPI. UTHR plans to submit regulatory applications for both indications in 2026, with a commercial launch in 2027, subject to regulatory approval.

Another promising late-stage pipeline asset is ralinepag, a potential next-generation growth driver for the company’s PAH franchise. The selective prostacyclin receptor agonist is being developed in two formulations, an oral version and a DPI version (RAL-DPI).

The growth of oral ralinepag increased significantly following positive data from the pivotal phase III ADVANCE OUTCOMES study in patients with PAH in March 2026. The study met its primary and secondary endpoints. Based on the data, United Therapeutics recently submitted a new drug application for oral ralinepag to the FDA.

Beyond the oral formulation, UTHR is developing ralinepag DPI (RAL-DPI), an inhaled dry-powder version of ralinepag, in collaboration with MannKind Corporation MNKD. While initially targeting PAH, management sees potential opportunities for RAL-DPI in PH-ILD, IPF and PPF. The company plans to file an investigational new drug application later this year.

Management expects approval for nebulized Tyvaso in IPF and oral ralinepag in PAH in 2027.

United Therapeutics is progressing well with the development of its organ manufacturing business. Last month, the company acquired Thymmune Therapeutics, a Cambridge-based, privately held biotech company developing regenerative thymic cell therapies. The acquisition reinforces United Therapeutics’ commitment to advancing regenerative medicine and expanding the availability and long-term success of organ transplantation. The acquisition added THY-100, Thymmune’s lead investigational therapy, to the company’s pipeline.

UTHR's Zacks Rank & Stocks to Consider

United Therapeutics currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the biotech sector are Harmony Biosciences HRMY and Liquidia Corporation LQDA, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Over the past 60 days, earnings per share estimates for Harmony Biosciences have increased from $3.20 to $3.33 for 2026. Over the same period, estimates for earnings per share increased from $3.64 to $3.87 for 2027. HRMY shares have risen 2.2% year to date.

Harmony Biosciences missed on earnings in three of the trailing four quarters and beat in the remaining one, delivering an average negative surprise of 13.97%.

Over the past 60 days, estimates for Liquidia’s 2026 earnings per share have increased to $3.02 from $2.97. Over the same period, EPS estimates for 2027 have risen to $5.31 from $4.81. LQDA shares have gained 158.4% year to date.

Liquidia’s earnings beat estimates in three of the trailing four quarters and missed in the remaining one, with the average surprise being 54.40%.

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This article originally published on Zacks Investment Research (zacks.com).

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