United Therapeutic Shares Rocketing Higher Following FDA Approval of Orenitram, JP Morgan Upgrade
Shares of United Therapeutic (NASDAQ: UTHR) are up more than 23 percent just after Monday morning's opening bell, breaking to a new high over $108.
United Therapeutic announced on Friday that the United States Food and Drug Administration approved Orenitram (treprostinil) Extended-Release Tablets for the treatment of pulmonary arterial hypertension (PAH) in WHO Group I patients to improve exercise capacity. United Therapeutics' President and Chief Operating Officer commented that this approval supports the company's mission to provide a "wider choice of PAH therapies for physicians and patients."
Monday morning JP Morgan analyst Geoffrey Meacham upgraded the stock form Underweight to Neutral and raised the price target from $62.00 to $90.00.
Despite the optimism in share price, Meacham noted that approval isn't enough to warrant a move to Overweight. The analyst cited the Sandoz litigation on Remodulin, a potential competition in PAH from Actelion's selexipag. In addition, JP Morgan commented that the Orenitram label appears "very restrictive."
United Therapeutic closed at a record high on December 2, at $94.95. Shares closed at $87.84 on Friday. Shares of United Therapeutic are currently up 23.06% at $108.10.
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