United Therapeutics (UTHR)
From Cabot Wealth Advisory 3/26/15 Sign up for Cabot Wealth Advisory—it’s free!J. Royden Ward, Editor of Cabot Benjamin Graham Value Investor
From Cabot Wealth Advisory 4/23/13 Sign up for free Cabot Wealth Advisory
This healthcare company clearly stand out in my list of 17 undervalued companies.
United Therapeutics (UTHR) Current Price 61.16; Max Buy Price 61.96, Based in Silver Spring, Maryland, United Therapeutics develops and markets therapeutic products for patients with chronic and life-threatening illness, including cardiovascular disorders, cancer, and infectious diseases. United Therapeutics is gaining market share and has become the U.S. leader in the pulmonary arterial hypertension (PAH) market with its highly successful Remodulin, Adcirca and Tyvaso treatments. In addition, exciting new products are being discovered in the company’s laboratories.
The U.S. Food and Drug Administration (FDA) acknowledged the resubmission of the new drug application for treprostinil diolamine extended-release tablets for the treatment of pulmonary arterial hypertension. The FDA classified the resubmission as a complete, class 1 response to FDA’s October 23, 2012 complete response letter. United’s previous submission had been rejected by the FDA.
Sales and earnings have soared during the past two years, and United is well-positioned to produce solid growth in 2013 and beyond. Sales will rise 12% and EPS will advance 16% during the next 12 months ending 3/31/14. New treatments for unmet clinical needs are under development. Expansion into foreign markets also offers great opportunities for the company.
At 9.1 times my forward EPS estimate of 6.70, UTHR shares are a bargain. New drugs could boost results considerably higher than my forecast. United pays no dividend and is medium risk. UTHR’s share price will likely rise to my Minimum Sell Price of 101.57 within two years.
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|United Therapeutics Corporation (UTHR)
1040 Spring Street
Silver Spring, Maryland 20910
|Index Membership: N/A
Industry: Drug Manufacturers - Other
Full Time Employees: 623