Investing.com — shares rose 9% Monday following the company’s announcement of a new $2 billion stock repurchase program.
The Silver Spring, Maryland-based biopharmaceutical company said its board authorized the buyback program, which includes initial $1.5 billion accelerated share repurchase agreements with Citibank (NYSE:C). The remaining amount of up to $500 million will be available for additional repurchases at the company’s discretion.
The buyback announcement came one week after United Therapeutics reported that its drug ralinepag reduced the risk of disease worsening in a late-stage study for treating a rare lung condition.
United Therapeutics markets several FDA-approved pulmonary arterial hypertension treatments, including oral drug Orenitram, continuous infusion therapy Remodulin, and inhaler-based Tyvaso and Tyvaso DPI.
TD Cowen analysts commented: “UTHR announced that its Board authorized a new stock repurchase program of up to $2B including a $1.5B ASR program executed today. We believe that this signals management’s confidence in continued strength in the commercial franchise given the levers of the soft mist inhaler, ralinepag, and Tyvaso in IPF with data from the Ph. III TETON 1 study expected in the coming weeks. Buy.”
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