United Therapeutics Earnings: Tyvaso DPI Sees Strong Demand, but Headwinds From Branded Competition

United Therapeutics reported positive second-quarter results highlighted by nearly $715 million in revenue, representing a 20% increase year over year. Strong uptake of Tyvaso DPI, a dry powder inhaler for treating pulmonary arterial hypertension, continues to be a significant growth driver, accounting for 36% of total quarterly revenue. Despite strong demand for Tyvaso DPI, which increased by 33% year over year, we continue to think United Therapeutics' competitive position in PAH will be challenged by branded competition from J&J’s Uptravi and the recent US Food and Drug Administration approval of Merck’s Winrevair, which just launched with excellent efficacy and posted solid sales of $70 million in the second quarter (partly helped by stocking).