After breaking out to a new high last month then pulling back, United Therapeutics has revived its momentum to soar once again. The biotech leader joins industry peers Vertex Pharmaceuticals and Harmony Biosciences on the IBD Breakout Stocks Index.
With a 95 Composite Rating in Stock Checkup, United Therapeutics ties Harmony Biosciences. Vertex leads the group with a 97, meaning it's outpacing 97% of all stocks in terms of key stock-picking traits.
While United Therapeutics did not join Vertex and Harmony Biosciences on the list of new buys by the best mutual funds, 56 funds with an A+ rating from IBD have reported a position in UTHR stock.
Who Joins United Therapeutics And Vertex On The IBD Breakout Stocks Index?
United Therapeutics Eyes 3D Printing Trials For Human Organs
Founded in 1996, United Therapeutics aims to find a cure for pulmonary arterial hypertension (PAH) and other life-threatening diseases. It focuses on the treatment of PAH through its product line, including Adcirca, Orenitram, Remodulin and Tyvaso. The company has gained FDA approval for five medicines.
United Therapeutics is the first publicly traded biotech or pharmaceutical company to take the form of a public benefit corporation. The transition to a PBC, made last year, confirms the company's mission extends beyond profits to include employees, other stakeholders and the environment.
The Maryland-based biotech also aims to create an unlimited supply of transplantable organs.
United Therapeutics has teamed up with 3D Systems to produce "the world's most complex 3D-printed object — a human lung scaffold." According a June 6 news release, "scientists at United Therapeutics plan to cellularize these 3D-printed scaffolds with a patient's own stem cells to create tolerable, transplantable human lungs that should not require immunosuppression to prevent rejection."
Already producing 3D-printed lung scaffolds demonstrating gas exchanges in animal models, United Therapeutics expects human clinical trials of 3D-printed, cellularized lungs in the next five years.
United Therapeutics Profit Growth Accelerates
In Q1, United Therapeutics generated accelerating growth in both earnings and sales. Revenue jumped from an 8% increase a year ago to a 22% increase, while EPS spiked from 6% to 44%.
Last year, United Therapeutics delivered $1.69 billion in sales. Revenue per employee in 2021 came in at an impressive $1.75 million. The company sports an A SMR Rating, boosted by a 55% annual pretax profit margin.
UTHR Leads As Biotech Stocks VRTX, HRMY Set Up
With its relative strength line soaring to new heights, United Therapeutics has jumped back to the buy zone it first cleared in late May and is now slightly extended.
UTHR stock initially broke past a 217.94 buy point May 24 after spiking nearly 12% in massive volume the day before. Including those moves, the stock has posted several days of heavy volume, confirming demand as its rising RS line shows market leadership.
Vertex Pharmaceuticals fell more than 8% below its 276.10 buy point in a cup-with-handle buy point it initially cleared on June 8. But VRTX has bounced back to retake its 50-day moving average as it closes in on the earlier entry.
Harmony Biosciences has also moved back above its 50-day line while forming a cup with handle. On Wednesday, HRMY stock broke past its 47.21 buy point in below-average but rising volume. Its RS line has already hit a new high.
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Follow Matthew Galgani on Twitter at @IBD_MGalgani.
