Phase III Readouts Will Broaden Pulmonary And Regenerative Markets

United Therapeutics’ consensus price target has been raised from $380.57 to $399.90, reflecting heightened analyst optimism following positive Phase 3 TETON-2 Tyvaso IPF results that signal a multibillion-dollar sales opportunity and improved revenue outlook despite competitive and litigation risks.

Analyst Commentary

• Bullish analysts increased price targets sharply following "surprisingly positive" Phase 3 TETON-2 results for Tyvaso in idiopathic pulmonary fibrosis (IPF), citing clinically meaningful FVC benefit, strong statistical significance, and a competitive efficacy profile compared to pipeline peers.
• The positive TETON-2 outcome is expected to unlock an estimated $2.5–4B peak, risk-adjusted sales opportunity in IPF, with the potential for seven years of orphan drug exclusivity, significantly boosting United's long-term revenue outlook.
• Expectations have risen for Tyvaso's near-term approval in IPF, with talk of expedited regulatory paths (e.g., rolling submission) and broad IPF treatment paradigm impact, despite the need for TETON-1 results for full FDA submission.
• Some bearish analysts previously trimmed price targets due to competitive threats from emerging therapies (notably Insmed's TPIP), increased market share assumptions for rivals from 15-20% to 40%, and uncertainties regarding United's ongoing patent litigation with Liquidia; however, most see current risks balanced by pipeline progress.
• Analyst consensus sees TETON-2 as a key binary event, with the risk/reward profile now strongly skewed to the upside, and additional support from accelerated share repurchase programs, seasonal sales strength, and a value cushion from ralinepag/PAH assets.

What's in the News

• Short seller Bleecker Street Research has taken a short position in United Therapeutics (UTHR) and a long position in Liquidia (LQDA), citing a meager UTHR pipeline, expected loss of Tyvaso patent protection, and increasing competition from Liquidia’s Yutrepia and other next-generation therapies (Bleecker Street Research, Periodicals).
• United Therapeutics and MannKind amended their license agreement to expand their collaboration to cover an additional development product, with MannKind receiving $5 million upfront, further milestones, and royalties, while UT will handle preclinical and clinical development (Key Developments).
• United Therapeutics announced a $1 billion share repurchase program authorized by the board, to be executed through March 31, 2026, with 45.2 million shares outstanding as of July 2025 (Key Developments).
• The first-in-human clinical trial for a bioengineered external liver assist device (miroliverELAP) by United Therapeutics and subsidiary Miromatrix Medical began, marking a significant milestone in organ alternative innovation and liver failure treatment (Key Developments).
• United Therapeutics concluded enrollment for the pivotal Phase 3 ADVANCE OUTCOMES trial evaluating ralinepag for pulmonary arterial hypertension (PAH); top-line results are expected in H1 2026, following previously favorable but uncontrolled Phase 2 results (Key Developments).

Valuation Changes

Summary of Valuation Changes for United Therapeutics

• The Consensus Analyst Price Target has risen from $380.57 to $399.90.
• The Consensus Revenue Growth forecasts for United Therapeutics has risen from 6.0% per annum to 6.5% per annum.
• The Future P/E for United Therapeutics has risen slightly from 14.81x to 15.26x.