United Therapeutics' CEO Discusses Q1 2012 Results - Earnings Call Transcript

United Therapeutics (UTHR)

Q1 2012 Earnings Call

April 26, 2012 9:00 am ET

Executives

Martine A. Rothblatt - Founder, Chairman and Chief Executive Officer

Andrew Fisher -

John M. Ferrari - Chief Financial Officer, Principal Accounting Officer and Treasurer

Roger A. Jeffs - President, Chief Operating Officer and Director

Analysts

Unknown Analyst

Roz Sweeney - RBC Capital Markets, LLC, Research Division

Joseph P. Schwartz - Leerink Swann LLC, Research Division

Liana Moussatos - Wedbush Securities Inc., Research Division

Mike Schmidt

Presentation

Operator

Good morning. My name is Tyrone and I'll be your conference operator today. At this time, I would like to welcome everyone to the United Therapeutics Corporation First Quarter Earnings Conference Call. [Operator Instructions] Remarks today concerning United Therapeutics will include forward-looking statements, which represent United Therapeutics' expectations or beliefs regarding future events based on current assumptions.

United Therapeutics cautions that such statements involve risks and uncertainties that may cause the actual results to differ materially from those in the forward-looking statements. Consequently, all such forward-looking statements are qualified by the cautionary language and risk factors set forth in United Therapeutics' periodic and other reports filed with the SEC. There can be no assurance that the actual results, events or developments referenced in such forward-looking statements will occur or be realized.

United Therapeutics assumes no obligations to update these forward-looking statements to reflect the actual results, changes in assumptions or changes in the factors affecting such forward-looking statements.

Thank you. Dr. Rothblatt, you may begin your conference.

Martine A. Rothblatt

Thank you very much, conference call operator. Good morning to everybody listening in on the United Therapeutics first quarter 2012 financial results conference call. I have joining me on the conference call today from United Therapeutics, our President and Chief Operating Officer, Dr. Roger Jeffs; our Chief Financial Officer, Mr. John Ferrari; and our Chief Strategy Officer, Mr. Andy Fisher.

Any questions that you may have relating to passing the IP issues could be directed to Mr. Fisher. Questions with regard to distributor, distribution, finance issues could be directed to Mr. Ferrari, and questions with regard to clinical development, sales marketing, and company-wide operations to Dr. Jeffs. And otherwise, I'm pleased to answer any questions you may have.

We've had a really great first quarter and we're announcing today's revenues of $204 million for the quarter. Earnings per share of $1.32 per basic share, $1.29 per diluted share. And then the main metrics that we used to gauge our business operations, the earnings before non-cash charges, Baird we're really pleased to report $2.13 per basic share, $2.08 per diluted share. These really good financial results, on the part is a stepping stone for our revenue guidance, which is plus or minus 5%, $875 million for this calendar year of 2012 and $1 billion for the next calendar year of 2013.

So the big pictures here is that product revenues are growing, earnings are growing and we remain on track for the guidance that we've provided for 2012 and 2013.

Operator, if you could please now open up the lines for any questions that people might have.

Question-and-Answer Session

Operator

[Operator Instructions] We have a question from Mark Schoenebaum of ICI Group (sic) [ISI Group].

Unknown Analyst

This is West sitting in for Mark. I had couple of questions about IP and also use of cash. My first question was around Tyvaso. Could you let us what the earliest potential date for a potential Paragraph IV filing for that product? And your expectations of any filing? And then also, I'd like to know if you have any updates on use of cash around share buybacks, as well as business development for the remainder of the year? Any additional details around that would be very helpful.

Martine A. Rothblatt

Okay, thank you very much. We're going to spend more through our time on your first question and you feel free to get back in the queue on the second question. Just to give you a quick answer, there is no change in our previously announced use of cash fund plans. Andy, can can you expand, provide some color on the IP questions asked?

Andrew Fisher

Sure. Thanks, Martine. So the situation with Tyvaso is that it has orphan drug exclusivity until July of 2016, and it has a range of Orange Book listed patents expiring from 2014 until 2018. So those are the things you need to be mindful of when you consider Tyvaso's exclusivity position with respect to generic filers. I would also remind our listeners that Tyvaso is approved as a drug device combination. So I think the situation presents slightly differently with Tyvaso, than with respect to the current pending Paragraph IV and the filing for a module.

Martine A. Rothblatt

Excellent observations Andy hopefully, that we're responses to Mark's question. I'd like to add just a little top off color, on top of that what Andy said. On the concept to the drug device combination because it's kind of an unusual concept in the biotechnology space. When we were originally getting the Remodulin approved the -- what was somewhat different is that the drug was improved with, sort of a generic step of infusion flow parameters that applied through the Medtronic, and formerly called MiniMed device, that infused it such that one could in fact, provide Remodulin with an -- the equivalent infusion device from another manufacturer. And there are in fact, a couple or maybe even more than 2 different infusion pumps that are used in combination with Remodulin. But as Andy pointed out, it's quite a different situation with Tyvaso being approved as a drug device combination. We ourselves tried more than once to reproduce the dispersal pattern within the bronchi that is associated with our device. It was in fact, not possible. Oftentimes other insulation devices will provide something that was deeper than the Optineb, perhaps some people could argue "better" than the Optineb, in terms of it's dispersal pattern within bronchi. But what was incontestable is that all of the any other device, it was always very, very different from the Optineb. And therefore, it would not in any way, shape or form come within the approval that was granted for Tyvaso and the Optineb device, as the drug device combination. So it would be -- it's going to be a hoarse of another color for there to be an introduction of a substitute for Tyvaso because of this unique drug device combination approval. And of course, as many of you are aware, this is a device that we own all rights to, the manufacture, so on and so forth. Thanks for the question from Mark's Group. And operator, if you can please take the next question.

Read the rest of this transcript for free on seekingalpha.com

More from Stocks

Danica Patrick's Final Race at 2018 Indianapolis 500: What She Thinks About Cars

Danica Patrick's Final Race at 2018 Indianapolis 500: What She Thinks About Cars

Why The FANG Stocks' Dominance May Not Be So Bad For The Market

Why The FANG Stocks' Dominance May Not Be So Bad For The Market

At End of May, Investors Signalling They May Stay Away

At End of May, Investors Signalling They May Stay Away

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Neel Kashkari: The Heart of Our Financial System Is More Radioactive Than Ever

Neel Kashkari: The Heart of Our Financial System Is More Radioactive Than Ever