Summary
United Therapeutics, a $5 bn market cap company, is traded at one of the lowest comparable multiples in biotech space.
Investors are concerned about uncertainty associated with the declining sales of the company's treprostinil franchise.
We'd wait for the company to reach $100-105 per share before opening a position in United Therapeutics.
United Therapeutics (UTHR), a company that focuses on late-stage Pulmonary Arterial Hypertension, or PAH treatments, is a $5 bn market cap company that is traded at 6-7x of its 2017/2018 adjusted earnings.
Company's stock has been volatile in the past due to concerns over revenue erosion of UTHR's main product, Remodulin. However, every time the stock drops below its presumed technical support level of $100, the company's fundamentals - ability to consistently generate growing revenues across its treprostinil franchise - are proving to be too strong to allow a further sell-off.
We think that entering the stock at ~$100-105 would be a worthwhile investment if/when the stock reaches those levels.
