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Investing.com - UBS has lowered its price target on United Therapeutics Corp . (NASDAQ:UTHR) to $385.00 from $410.00 while maintaining a Buy rating ahead of a significant clinical catalyst. According to InvestingPro data, the stock currently trades at $284.27, near its 52-week low, with analyst targets ranging from $314 to $510, suggesting significant upside potential. The company maintains impressive gross margins of 89% and trades at an attractive P/E ratio of 12.38.
The firm sees a favorable risk/reward profile at the current valuation as the company approaches its idiopathic pulmonary fibrosis (IPF) readout in the third quarter of 2025. UBS expects United Therapeutics’ Tyvaso to benefit from seasonally strong second and third quarters. InvestingPro analysis indicates the company is currently undervalued, with a perfect Piotroski Score of 9, suggesting strong financial health. Subscribers can access 10+ additional ProTips and comprehensive financial metrics through the Pro Research Report.
UBS notes that a potential share repurchase announcement could keep "short interest" low, though it remains unclear whether United Therapeutics will pursue this option. The firm suggests that Tyvaso’s fibrosis potential might be underappreciated by the market.
According to feedback from a key opinion leader consulted by UBS, there is a 50% chance of Tyvaso’s study generating positive data in IPF, which the firm considers meaningful for a historically challenging indication. The physician indicated that while Tyvaso’s mechanistic rationale is unclear, the same applies to Ofev, which generates over $3 billion in IPF sales.
Research cited by UBS shows that most forced vital capacity (FVC) benefits in previous studies were enriched in high pulmonary vascular resistance and NT-proBNP groups, though there was no clear correlation between pulmonary hypertension severity and FVC response.
In other recent news, United Therapeutics Corporation has completed enrollment for its phase 3 ADVANCE OUTCOMES study, evaluating ralinepag as a treatment for pulmonary arterial hypertension. The study, which enrolled 728 participants, is expected to provide top-line data in the first half of 2026. Meanwhile, Insmed (NASDAQ:INSM) Incorporated announced positive topline results from its Phase 2b study of Treprostinil Palmitil Inhalation Powder, meeting both its primary and secondary efficacy endpoints. The company plans to engage with the FDA to design Phase 3 trials, anticipated to begin by the end of 2025.
In analyst updates, Leerink Partners has maintained an Outperform rating for United Therapeutics, highlighting potential opportunities in the idiopathic pulmonary fibrosis market. TD Cowen also reaffirmed its Buy rating on United Therapeutics, citing confidence in the company’s Tyvaso drug and its xenotransplantation platform. On the legal front, Raymond (NSE:RYMD) James reiterated a Strong Buy rating for Liquidia Technologies (NASDAQ:LQDA) following a court ruling that favored the company in a patent infringement case against United Therapeutics. Liquidia quickly moved to commercialize its Yutrepia product, now available through specialty pharmacies. These developments indicate significant activity and potential advancements within the industry.
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