Summary
- As it hovers near 52-week lows, United Therapeutics is on the Do-It-Yourself Value investor's radar.
- Investors fret over the threat of generic competition.
- UTHR stock trades at a deep discount to fair value.
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United Therapeutics Corporation (UTHR) is in an unstoppable downtrend that started in March. Since reporting fourth-quarter results on Feb. 28, selling accelerated in May when the company posted its first-quarter results for 2019. After revenues fell and losses mounted, should investors give up on this stock?
forecasts a tripling in the number of patients, to 20,000, over the next few years. Management is confident that Remodulin, Tyvaso, and Orenitram have each been infused with new technology breakthroughs that will boost sales. It said:
There are five technology breakthroughs for Remodulin, four technology breakthroughs for Tyvaso and three technology breakthroughs for Orenitram.
Source: SA Transcript
It also cited a deep pipeline of product candidates in oncology, pulmonary fibrosis, and pulmonary hypertension will contribute to the tripling in the business. But investors are no longer willing to patiently wait for the pipeline to bear fruit. UNH stock peaked at around $130 and traded recently at $79:
Data by YCharts
