SILVER SPRING, Md., May 1 United TherapeuticsCorporation (Nasdaq: UTHR) today announced its results of operations for thequarter ended March 31, 2008.
Total revenues for the first quarter of 2008 were $62.0 million, up 55%from $40.2 million for the first quarter of 2007. Net income for the firstquarter of 2008 was $11.4 million, or $0.51 per basic share as compared to anet loss of $2.8 million, or $(0.13) per basic share, for the first quarter of2007. Earnings before non-cash charges, which measures GAAP earnings beforenon-cash income taxes, depreciation, amortization and stock option expenses,were $25.2 million for the first quarter of 2008, up 102% from $12.5 millionfor the first quarter of 2007. Gross margins from sales were $54.5 million inthe first quarter of 2008, up 52% from $35.8 million in the first quarter of2007. The increases in revenues and gross margins resulted primarily fromgrowth in sales of our lead product, Remodulin.
"We are very pleased that our revenues and earnings before non-cashcharges for the first quarter of 2008 increased substantially over the samequarter in 2007," said Martine Rothblatt, Ph.D., United Therapeutics' Chairmanand Chief Executive Officer. "This indicates continued strong growth inphysician and patient appreciation of Remodulin, our version of the naturalvasoactive molecule prostacyclin, administered intravenously andsubcutaneously."
Research and Development Expenses
The increase in cardiovascular expenses in the first quarter of 2008 ascompared to the first quarter of 2007 was primarily due to an increase inexpenses of approximately $1.2 million and $2.6 million, related to our oraland inhaled treprostinil programs, respectively.
Selling, General and Administrative Expenses
The increase in both general and administrative and sales and marketingexpenses in the first quarter of 2008 were due primarily to increased salariesand related expenses from headcount growth to support our expandingoperations.
Income tax expense totaling $6.6 million was reported in the first quarterof 2008, as compared to a tax benefit of $1.4 million in the first quarter of2007. The tax benefit was the result of the loss incurred during the quarter.We do not anticipate paying significant federal income taxes for 2008 due tothe availability of approximately $32.5 million of net operating losscarryforwards and approximately $71.5 million of research tax credits.
Earnings Before Non-Cash Charges Calculation
The following table provides a reconciliation of net income (loss) andearnings before non-cash charges for the three-month periods ending March 31,2008 and 2007, respectively (in thousands, except per share data):
United Therapeutics will host a half-hour teleconference on Thursday, May1, 2008, at 9:00 a.m. Eastern Time. The teleconference is accessible bydialing 1-800-603-1777, with international callers dialing 1-706-679-8129. Arebroadcast of the teleconference will be available for one week following theteleconference by dialing 1-800-642-1687, with international callers dialing1-706-645-9291, and using access code 43964006. This teleconference is alsobeing webcast and can be accessed via United Therapeutics' website athttp://ir.unither.com/events.cfm.
About United Therapeutics
United Therapeutics is a biotechnology company focused on the developmentand commercialization of unique products to address the unmet medical needs ofpatients with chronic and life-threatening cardiovascular and infectiousdiseases and cancer.
Non-GAAP Financial Information
This press release contains certain financial measures that do not complywith GAAP, but which measures supplement our financial results prepared inaccordance with GAAP.
We use earnings before non-cash charges, a non-GAAP measure, internallyfor operating, budgeting an