United Therapeutics Corporation (Nasdaq: UTHR) today announced its results of operations for the quarter ended September 30, 2010.
Total revenues for the third quarter of 2010 were $171.0 million, up from $97.2 million for the same quarter in 2009. Net income for the third quarter of 2010 was $39.7 million, or $0.70 per basic share, compared to net income of $11.9 million, or $0.22 per basic share, for the same quarter in 2009. Gross margin from sales was $148.9 million for the third quarter of 2010, compared to $84.2 million for the same quarter last year. Earnings before non-cash charges, a non-GAAP financial measure, was $99.1 million for the third quarter of 2010 compared to $40.6 million for the third quarter of 2009.
"We had a good quarter as the demand for our core products continues to grow," said Martine Rothblatt, Ph.D., United Therapeutics' Chairman and Chief Executive Officer. "Having approvals for multiple products is making a positive difference in our growth rate and in the number of patients that we can help compared to last year."
Financial Results for the Three Months Ended September 30, 2010
The growth in revenues for the three months ended September 30, 2010 reflects the continued increase in the number of patients being prescribed our products. The increase in sales of Remodulin also reflects approximately $9.1 million from the impact of U.S. and international price increases that became effective during March and April of 2010.
Research and Development Expense
Cardiopulmonary. The increase in expenses related to our cardiopulmonary programs for the quarter ended September 30, 2010 compared to the same quarter in 2009 was driven largely by increases in expenses associated with our FREEDOM-M and FREEDOM-C2 Phase III clinical trials and expenses related to our efforts to develop beraprost-MR.
Share-based compensation. The increase in share-based compensation for the quarter ended September 30, 2010 compared to the same quarter in 2009 resulted from increases in the price of our common stock, the number of outstanding awards issued under our share tracking awards plan and the time such awards had accrued toward vesting.
Other. For the quarter ended September 30, 2010, expenses incurred in connection with our investigational projects as well as personnel and overhead costs supporting our research increased primarily as a result of the opening of our new facilities in North Carolina and Maryland.
Selling, General and Administrative Expense
General and administrative. The increase in general and administrative expenses for the quarter ended September 30, 2010 compared to the same quarter in 2009 resulted largely from increases in the following: (1) grants to unaffiliated, not-for-profit organizations that provide therapy-related financial assistance to patients suffering from pulmonary arterial hypertension; (2) professional fees pertaining mainly to legal services provided in connection with ongoing litigation and prospective transactions; and (3) depreciation expense primarily associated with our new facilities in North Carolina and Maryland.