Navigation Links
United Therapeutics Corporation Reports Second Quarter 2009 Financial Results
Date:7/31/2009

SILVER SPRING, Md., July 31 /PRNewswire-FirstCall/ -- United Therapeutics Corporation (Nasdaq: UTHR) today announced its results of operations for the quarter ended June 30, 2009.

Total revenues for the second quarter of 2009 were $84.0 million, up from $68.6 million for the second quarter of 2008. We recognized a net loss of $2.3 million, or $(0.09) per basic share, for the second quarter of 2009, compared to net income of $12.1 million, or $0.53 per basic share, for the second quarter of 2008. The net loss for the second quarter of 2009 was primarily the result of an increase in non-cash, share-based compensation expenses recognized during the quarter. Gross margins from sales were $73.6 million for the second quarter of 2009, compared to $60.6 million for the second quarter of 2008. Earnings before non-cash charges, defined as net (loss) income before non-cash interest and income taxes, depreciation, amortization, impairment charges and share-based compensation (stock option and share tracking award expense), were $32.5 million for the second quarter of 2009, up from $29.2 million for the second quarter of 2008.

Results for the second quarter of 2008 have been adjusted for the retrospective adoption of Financial Accounting Standards Board Staff Position No. APB 14-1 (FSP APB 14-1), which became effective January 1, 2009.

"I am pleased that our quarterly sales have increased to a record high," said Martine Rothblatt, Ph.D., United Therapeutics' Chairman and Chief Executive Officer. "The impact of these record sales, coupled with strong margins, is what drove our 11.5% growth in earnings before non-cash charges. Our net loss is primarily due to the accounting treatment of our long-term share-based compensation plans, which tracks the increase in the price of our common stock this quarter. Our increased stock price also highlights our mature pipeline, which has the potential for further growth through continued market penetration by Remodulin, our recent launch of Adcirca, the only once-daily PDE-5 inhibitor for PAH, and the expected launch of Tyvaso, our now FDA-approved inhaled prostacyclin analogue."

Research and Development Expenses

The table below summarizes research and development expenses by significant component (dollars in thousands):

                                        Three Months Ended
                                             June 30,
                                       --------------------  Percentage
                                       2009            2008    Change
                                       ----            ----  ----------
      Program:
       Cardiovascular               $13,105         $11,890        10.2%
       Other                          6,608           3,938        67.8%
       Share-based compensation       8,933           3,313       169.6%
                                      -----           -----       -----
         Total research and
          development expenses      $28,646         $19,141        49.7%
                                    =======         =======        ====

Cardiovascular. The increase in cardiovascular program expenses for the quarter ended June 30, 2009, is principally related to the commencement of our modified FREEDOM-M and new FREEDOM-C2 clinical trials.

Share-based compensation. The increase in share-based compensation expense for the quarter ended June 30, 2009, as compared to the quarter ended June 30, 2008, is primarily due to the increase in the price of our common stock during the quarter, which resulted in additional compensation expense relating to outstanding grants under our Share Tracking Awards Plan (STAP).

Selling, General and Administrative Expenses

The table below summarizes selling, general and administrative expenses by major category (dollars in thousands):


                                           Three Months Ended
                                                June 30,
                                           -------------------  Percentage
                                           2009           2008    Change
                                           ----           ----  ----------
      Category:
        General and administrative      $12,960         $9,444        37.2%
        Sales and marketing              11,049          9,316        18.6%
        Share-based compensation         25,362          4,333       485.3%
                                         ------          -----       -----
         Total selling, general
          and administrative expenses   $49,371        $23,093       113.8%
                                        =======        =======       =====



General and administrative. The increase in general and administrative expenses for the quarter ended June 30, 2009, resulted mainly from expenses incurred in connection with the operation of our newly constructed facility in Research Triangle Park, North Carolina.

Sales and marketing. The increase in sales and marketing expenses for the quarter ended June 30, 2009, primarily reflects expenses incurred in connection with our new marketing campaign for Adcirca (tadalafil) tablets.

Share-based compensation. The increase in share-based compensation expense for the quarter ended June 30, 2009, as compared to the quarter ended June 30, 2008, is primarily due to the increase in the price of our common stock, which resulted in additional compensation expense relating to both the outstanding grants under our STAP and a potential year-end stock option grant.

Earnings Before Non-Cash Charges

The following table provides a reconciliation of net (loss) income to earnings before non-cash charges for the three-month periods ended June 30, 2009 and 2008 (in thousands, except per share data):

                                                Three Months Ended
                                                     June 30,
                                                ------------------
                                                             2008
                                               2009     As adjusted(1)
                                               ----     -----------
     Net (loss) income, as reported         $(2,344)          $12,062
     Add non-cash charges:
       Interest expense                       3,248             2,642
       Depreciation and amortization          2,403             1,028
       Income tax (benefit) expense, net of
        taxes paid                           (5,135)            6,221
       Impairment charges                         -               152
       Share-based compensation              34,364             7,086
                                             ------             -----
     Earnings before non-cash charges       $32,536           $29,191
                                            =======           =======

     Earnings before non-cash charges per
      share:
     Basic(2)                                 $1.23             $1.29
                                              =====             =====
     Diluted(3)                               $1.19             $1.20
                                              =====             =====

    (1) Adjusted for the retrospective adoption of FSP APB 14-1.

    (2) Calculated by dividing earnings before non-cash charges presented
        above by the weighted average number of shares outstanding for the
        period.

    (3) Calculated by dividing earnings before non-cash charges presented
        above by the weighted average number of shares outstanding for the
        period adjusted for potentially dilutive securities. For the quarter
        ended June 30, 2009, approximately 27.4 million shares were used to
        calculate diluted earnings before non-cash charges.

Conference Call

United Therapeutics will host a half-hour teleconference on Friday, July 31, 2009, at 9:00 a.m. Eastern Time. The teleconference is accessible by dialing 877-852-6576, with international callers dialing 719-325-4788. A rebroadcast of the teleconference will be available for one week and can be accessed by dialing 888-203-1112, with international callers dialing 719-457-0820, and using conference code: 4416949.

This teleconference is also being webcast and can be accessed via United Therapeutics' website athttp://ir.unither.com/events.cfm.

About United Therapeutics

United Therapeutics is a biotechnology company focused on the development and commercialization of unique products to address the unmet medical needs of patients with chronic and life-threatening cardiovascular and infectious diseases and cancer.

Non-GAAP Financial Information

This press release contains a financial measure that does not comply with United States generally accepted accounting principles (GAAP). This measure supplements our financial results prepared in accordance with GAAP as reported below.

We use earnings before non-cash charges, a financial non-GAAP measure, internally for operating, budgeting and financial planning purposes. We believe this measure enhances our investors' understanding of our performance; however, the presentation of this non-GAAP financial measure is not to be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP.

Forward-looking Statements

Statements included in this press release that are not historical in nature are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, among others, our expectations and intentions related to financial performance and results, including our stock price performance, the market penetration of Remodulin, and the growth potential for Adcirca and Tyvaso. These forward-looking statements are subject to certain risks and uncertainties, such as those described in our periodic reports filed with the Securities and Exchange Commission, that could cause actual results to differ materially from anticipated results. Consequently, such forward-looking statements are qualified by the cautionary statements, cautionary language and risk factors set forth in our periodic reports and documents filed with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and current reports on Form 8-K. We claim the protection of the safe harbor contained in the Private Securities Litigation Reform Act of 1995 for forward-looking statements. We are providing this information as of July 31, 2009, and assume no obligation to update or revise the information contained in this press release whether as a result of new information, future events or any other reason. [uthr-e]

Remodulin and Tyvaso are trademarks of United Therapeutics Corporation.

Adcirca is a trademark of Eli Lilly and Company.

                         UNITED THERAPEUTICS CORPORATION
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                      (In thousands, except per share data)


                         Three Months Ended            Six Months Ended
                              June 30,                      June 30,
                         2009          2008           2009           2008
                         ----          ----           ----           ----
                                  As Adjusted(1)                As Adjusted(1)
                             (Unaudited)                  (Unaudited)
                        --------------------        ----------------------

    Revenues:
      Net product
       sales           $81,009       $65,497       $157,867       $124,650
      Service sales      2,648         2,393          5,178          4,620
      License fees         323           666            665          1,333
                           ---           ---            ---          -----
        Total
         revenues       83,980        68,556        163,710        130,603

    Operating
     expenses:
      Research and
       development      28,646        19,141         49,605         40,217
      Selling,
       general and
       administrative   49,371        23,093         78,589         42,424
      Cost of product
       sales             9,015         6,564         17,081         12,739
      Cost of service
       sales             1,069           768          1,989          1,479
                         -----           ---          -----          -----
        Total
         operating
         expenses       88,101        49,566        147,264         96,859
        (Loss) income
         from
         operations     (4,121)       18,990         16,446         33,744

    Other (expense)
     income:
      Interest income    1,335         2,804          3,056          6,412
      Interest expense  (3,248)       (3,601)        (5,885)        (6,285)
      Equity loss in
       affiliate           (38)          (43)           (57)          (156)
      Other, net           529           817            894            525
                           ---           ---            ---            ---
        Total other
         (expense)
         income, net    (1,422)          (23)        (1,992)           496
    (Loss) income
     before income tax  (5,543)       18,967         14,454         34,240
    Income tax benefit
     (expense)           3,199        (6,905)        (3,599)       (12,467)
    Net (loss) income  $(2,344)      $12,062        $10,855        $21,773
    Net (loss) income
     per common share:
      Basic             $(0.09)        $0.53          $0.41          $0.97
                        =======        =====          =====          =====
      Diluted           $(0.09)        $0.50          $0.40          $0.90
                        =======        =====          =====          =====
    Weighted average
     number of common
     shares
     outstanding:
      Basic             26,491        22,600         26,466         22,467
                        ======        ======         ======         ======
      Diluted           26,491        24,328         27,343         24,120
                        ======        ======         ======         ======


    (1) Adjusted for the retrospective adoption of FSP APB 14-1.

                       CONSOLIDATED BALANCE SHEET DATA
                               June 30, 2009
                          (unaudited, in thousands)

      Cash, cash equivalents and marketable securities
       (excluding restricted amounts of $46,155)             $350,677
      Total assets                                           $951,671
      Total liabilities and common stock subject to
       repurchase                                            $346,691
      Total stockholders' equity                             $604,980


'/>"/>
SOURCE United Therapeutics Corporation
Copyright©2009 PR Newswire.
All rights reserved

Related medicine news :

1. Call to the Youth of America: Palms for Life Fund Launches Film Competition to Document Hunger in the United States
2. MULTAQ(R) (dronedarone) for Atrial Fibrillation or Atrial Flutter Now Available in the United States
3. President Obama Announces Intention to Sign United Nations Convention on the Rights of Persons with Disabilities, Impacts Accessible ICT
4. United States Patent Office Issues Decision in Re-examination Proceedings
5. RF Technologies Achieves Premier Certification From Cisco in United States
6. Caroline W. Nahas Named New Corporate Board Chair for United Way of Greater Los Angeles
7. United Spinal Associations 2009 Independence Expo Aug 7th-8th in Orlando: Improving Life for the Disabled and the Aging
8. Tampa Bay Doctor Agrees to Pay United States $1.7 Million to Resolve Medicare Fraud Allegations
9. Biopure Files Voluntary Petition for Relief Under Chapter 11 of the United States Bankruptcy Code
10. United American Nurses Hails House Health Care Reform Bill
11. United Physicians Goes Green Effective August 1st, 2009
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:2/5/2016)... , ... February 05, 2016 , ... Love is in ... in a variety of colors, assortments and packaging. This staple for Valentine’s Day is ... Kullen location. , For Valentine’s Day, not only are long-stem roses available, but ...
(Date:2/5/2016)... ... February 05, 2016 , ... ... franchisees of Popeyes Louisiana Kitchen restaurants, launched the 14th annual “Appetite for a ... and adults with muscular dystrophy, ALS and related diseases that severely limit strength ...
(Date:2/5/2016)... ... 05, 2016 , ... The Lymphoma Research Foundation (LRF) – ... serving the lymphoma community through a comprehensive series of education programs, outreach initiatives ... Tasting Event at the La Gorce Country Club in Miami Beach on March ...
(Date:2/5/2016)... ... February 05, 2016 , ... Give To Cure today announced ... and donate to Give To Cure’s campaign that is crowdfunding clinical trials to help ... and share payments through a smart device. In 2015 alone, Venmo processed $7.5 billion ...
(Date:2/5/2016)... ... 05, 2016 , ... Stuart Bentkover, MD, FACS is thrilled to ... the most effective tattoo removal today, Dr. Bentkover is the only doctor in Central ... the PicoSure has been approved by the Food and Drug Administration (FDA) as a ...
Breaking Medicine News(10 mins):
(Date:2/5/2016)... a medical devices company, is one of five recipients to ... Terry McAuliffe,s office. ivWatch will be receiving the STEM ... to be held at the Science Museum of ... that have made significant contributions to science. ... ivWatch ...
(Date:2/5/2016)... Feb. 5, 2016 ... of the "Global Musculoskeletal Partnering 2010-2016: ... profile to their offering. --> ... of the "Global Musculoskeletal Partnering 2010-2016: ... profile to their offering. --> ...
(Date:2/5/2016)... BEIJING , Feb. 5, 2016 ... ("Dehaier Medical" or the "Company"), which develops, markets ... products in China and ... restructuring plan which aims to concentrate the Company,s ... wearable sleep respiratory business and to focus more ...
Breaking Medicine Technology: