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Investing.com - UBS has raised its price target on United Therapeutics Corp. (NASDAQ:UTHR) to $560.00 from $415.00 while maintaining a Buy rating following positive Phase 3 trial results. The company, currently valued at $17.7 billion, has demonstrated strong financial health with an "Excellent" InvestingPro overall score of 3.98.
The price target increase comes after United Therapeutics reported successful Phase 3 TETON-2 trial results, which drove the stock up 28%. UBS noted this positive outcome surprised many investors and analysts. According to InvestingPro data, the company maintains impressive gross profit margins of 89% and trades at a P/E ratio of 14.4.
UBS has increased its risk-adjusted peak sales forecast for Tyvaso in idiopathic pulmonary fibrosis (IPF) to $3.3 billion from $1.5 billion, citing the drug’s potential to become a standard of care in the $4 billion global IPF market currently served by two "sub-optimal drugs."
The firm identified upcoming catalysts for United Therapeutics including additional detailed TETON-2 results to be presented at the ERS Congress on September 28, and the TETON-1 trial readout expected in the first half of 2026.
UBS is hosting a call with a key opinion leader in IPF on Friday, September 5, to review the TETON-2 data and discuss expectations for the TETON-1 trial.
In other recent news, United Therapeutics announced that its TETON-2 pivotal study of Tyvaso for the treatment of idiopathic pulmonary fibrosis (IPF) successfully met its primary efficacy endpoint, showcasing a significant improvement in forced vital capacity compared to a placebo. This positive outcome has led Jefferies to raise its price target for United Therapeutics to $564.00, maintaining a Buy rating. UBS also reiterated a Buy rating with a $415.00 price target, highlighting the promising prospects of Tyvaso in ongoing clinical studies. Cantor Fitzgerald continues to support United Therapeutics with an Overweight rating and a $405.00 price target, pointing to the upcoming TETON trials as a significant factor for future performance.
In addition to these developments, United Therapeutics has expanded its partnership with MannKind Corporation to develop a second dry powder inhalation therapy. This collaboration builds on their previous success with Tyvaso DPI, the first FDA-approved dry powder inhalation treatment for pulmonary hypertension. These recent advancements reflect the company’s ongoing efforts to innovate and expand its treatment offerings.
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