United Therapeutics (UTHR) Morgan Stanley 22nd Annual Global Healthcare Conference summary

Capital allocation and business development priorities

• Capital allocation remains focused on business investment, business development, and share repurchases, with recent activity in all three areas, including a new manufacturing facility and two small acquisitions.

• Share repurchase program is a one-time event, set to conclude by month-end, with future buybacks assessed tactically based on other investment opportunities.

• Business development targets rare disease and specialty products, with openness to opportunities beyond core areas, leveraging clinical, manufacturing, and sales strengths.

• Current M&A focus is on niche areas, allowing for selectivity and strategic fit.

Commercial execution and market dynamics

• Sales and marketing execution remains a priority, with strong performance in Tyvaso and benefits from a recent sales force expansion.

• Inventory position is strong, with bottlenecks resolved and additional manufacturing capacity expected late this year or early next year.

• PH-ILD market penetration is about 15%, with a 10% increase in prescriber base since January, mainly from ILD treaters.

• Prescriber base for PH-ILD is 40-50% larger than for PAH, with ongoing efforts to expand among community physicians.

• Patient support program is being revamped to improve retention, especially in the first 3-4 months of therapy.

Regulatory and reimbursement environment

• Medicare Part D redesign reduces patient out-of-pocket costs, with manufacturer catastrophic coverage phased in over seven years due to a small biotech exemption.

• Patient assistance program utilization has dropped, with commercial patient mix improving.

• Rebating pressures from Part D plans have resulted in modest increases, mitigated by strong market share and competition.