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If You Invested $1000 in United Therapeutics a Decade Ago, This is How Much It'd Be Worth Now

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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.

FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.

What if you'd invested in United Therapeutics (UTHR - Free Report) ten years ago? It may not have been easy to hold on to UTHR for all that time, but if you did, how much would your investment be worth today?

United Therapeutics' Business In-Depth

With that in mind, let's take a look at United Therapeutics' main business drivers.

Silver Spring, MD-based United Therapeutics Corporation markets four medicines in the United States to treat pulmonary arterial hypertension (PAH): Remodulin, an injectable formulation of treprostinil, Orenitram, an oral version of treprostinil, Tyvaso, an inhaled version of treprostinil, and Adcirca (tadalafil; also sold by Eli Lilly as Cialis for erectile dysfunction) tablets. Remodulin is approved for both subcutaneous (SC) and intravenous (IV) use.
 
The company is also focused on research and development efforts to address the shortage of transplantable organs and tissues through regenerative medicine and organ manufacturing.
 
The company licensed certain exclusive rights to commercialize Adcirca for the treatment of PAH in the United States from Lilly in November 2008. Adcirca/Cialis lost exclusivity in 2018 and generic versions are available.
 
In 2015, the company gained approval for Unituxin for the treatment of pediatric patients with high-risk neuroblastoma. The antibody has been developed under an agreement with the National Cancer Institute (NCI) of the United States National Institutes of Health (NIH).
 
In January 2019, United Therapeutics acquired the worldwide rights to manufacture and develop/commercialize Arena Pharmaceuticals’ (now a part of Pfizer) oral, potent, once-daily IP receptor agonist, ralinepag. Ralinepag is being developed in late-stage studies for PAH.
 
United Therapeutics also has a robust pipeline that includes new indications, formulations, and delivery devices for its existing products, as well as new products to treat PAH, pulmonary fibrosis and other conditions.
 
The company reported total revenues of $2.33 billion in 2023, up 20% year over year.

Bottom Line

Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in United Therapeutics ten years ago, you're likely feeling pretty good about your investment today.

A $1000 investment made in July 2014 would be worth $3,591.24, or a 259.12% gain, as of July 19, 2024, according to our calculations. Investors should note that this return excludes dividends but includes price increases.

Compare this to the S&P 500's rally of 180.28% and gold's return of 79.01% over the same time frame.

Going forward, analysts are expecting more upside for UTHR. The demand for United Therapeutics’ treprostinil medicines is strong despite generic concerns and competitive pressure. Potential approvals for expanded use of Orenitram and Tyvaso can drive long-term growth. United Therapeutics is also progressing well with the development of its organ manufacturing business. The company aims to develop Tyvaso in idiopathic pulmonary fibrosis and progressive pulmonary fibrosis indications, as management believes that sales in PAH indications have reached their peak. Though the company is a leader in PAH, the lack of product and pipeline diversification beyond PAH is a concern. Competition in the PAH market is increasing. Also, the potential impact of Remodulin generics is a concern. The stock has outperformed the industry year to date.
Shares have gained 6.37% over the past four weeks and there have been 4 higher earnings estimate revisions for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.


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