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On Tuesday, Goldman Sachs retained a Neutral rating for United Therapeutics Corp . (NASDAQ: NASDAQ:UTHR) stock with a steady price target of $243.00.
The financial institution acknowledged a recent regulatory decision that benefits United Therapeutics. This decision grants their product Tyvaso a three-year exclusivity period. This decision delays the potential market entry of a competing product, Yutrepia, from Liquidia until at least May 23, 2025.
The FDA's grant of regulatory exclusivity for Tyvaso, a dry powder inhaled formulation of treprostinil, is seen as a significant advantage for United Therapeutics. It provides the company with additional time to capitalize on its treatments for pulmonary arterial hypertension (PAH) and pulmonary hypertension in patients with interstitial lung disease (PH-ILD) without the immediate threat of competition.
The analyst noted that United Therapeutics' shares have shown strength following their second-quarter updates. The company's portfolio performance has been robust, and its Accelerated Share Repurchase (ASR) program reflects a strategic approach to capital allocation. Additionally, the early stages of Merck's Winrevair launch have not significantly impacted United Therapeutics' market position, which has allayed some concerns about competitive pressures.
The FDA's decision to grant extended exclusivity for Tyvaso is seen as providing clear benefits to United Therapeutics. It allows the company to continue to dominate the PAH and PH-ILD markets before facing competition from Liquidia's Yutrepia. According to the analyst, this development supports the current Neutral rating on the stock.
In summary, the analyst's remarks underscore United Therapeutics' solid performance and strategic capital management, which have contributed to the company's stable outlook. The extended regulatory exclusivity for Tyvaso is expected to bolster United Therapeutics' position in the market for the near future.
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