United Therapeutics shares rise after co. swings to profit

NEW YORK—Shares of United Therapeutics Corp. rose Thursday after the biotechnology company said it swung to a first-quarter profit, helped by sales of its blood-pressure treatment and lower research and development costs.

Silver Spring, Md.-based United Therapeutics said net income grew to $11.4 million, or 47 cents per share, from a loss of $2.8 million, or 13 cents per share, a year ago.

Revenue jumped 54 percent to $62 million from $40.2 million a year earlier, driven by strong sales of its lead product, Remodulin. The injection is used to treat pulmonary arterial hypertension, or elevated blood pressure in the lung's blood vessels.

Research and development costs fell to $21.1 million, from $28.1 million a year earlier.

Analysts surveyed by Thomson Financial expected a slightly higher profit of 53 cents per share on revenue of $61.5 million.

Cowan & Co. analyst Phil Nadeau, who has an "Outperform" rating on United Therapeutics, said that he is optimistic about the stock's growth potential in the long term, because of the probable 2009 launch of an inhaled version of Remodulin known as Viveta. He expects shares to outperform the broader market by 30 percent or more over the next 12 to 18 months.

Citi analyst Lucy Lu agreed, adding that the company remains her top pick for 2008. She rates shares "Buy."

Shares of United Therapeutics gained $2.79, or 3.3 percent, to close at $87.29.