- Revenue Growth: Total revenue surpassed $3 billion in 2025, with $790 million in Q4, reflecting 11% annual growth and 7% Q4-Q4 growth.
- Tresmi Launch: Soft mist inhaler (reduces coughing by 90%) will file for PAH/ILD approval in 2026 and launch in 2027, targeting $4 billion revenue by 2027.
- Tyvaso IPF Trial: Second pivotal trial (TETON 1) will unblind next month, with FDA approval and IPF launch expected by June 2027, projected to outperform existing IPF drugs.
- Competitive Dynamics: Tyvaso remains market leader in PH, with patient starts expected to rebound in February 2026 due to seasonality, restoring sequential revenue growth by Q2.
Revenue Growth Drivers
The growth in revenue is largely attributed to the success of Tyvaso, which remains the market leader for inhaled therapy in pulmonary hypertension. The company's primary market research insights and underlying demand trends support the importance of consistent delivery in one breath, a key attribute of Tyvaso. The launch of new products, including the soft mist inhaler, Tresmi, is expected to further drive growth, with management projecting a $4 billion revenue run rate by 2027.
Pipeline Updates and Competitive Advantage
United Therapeutics is making significant progress in its development pipeline, with the unblinding of its outcome study for ralinepag expected next week. The company is also anticipating the results of its TETON 1 trial for Tyvaso in IPF next month, with high confidence in a positive outcome given the success of TETON 2. The soft mist inhaler, Tresmi, is expected to be a category-crusher product, with its cough-reducing benefit, once-a-day dosing, and treatment of IPF making it highly competitive.
Valuation and Outlook
With a P/E Ratio of 17.76 and an EV/EBITDA of 12.45, United Therapeutics appears to be reasonably valued given its strong growth prospects. The company's ROE of 19.3% and ROIC of 15.88% indicate a high level of profitability. As the company continues to drive growth through its existing products and new launches, investors can expect a continued upward trajectory in the stock price. The projected $4 billion revenue run rate by 2027 suggests significant upside potential, making the stock an attractive investment opportunity for those looking for growth in the biotech sector.