United Therapeutics Corporation

Good morning and welcome to the United Therapeutics Corporation second quarter 2022 earnings webcast. My name is Dennis and I will be your conference operator today. All participants on the call portion of this webcast will be in listen only mode until the question and answer portion of this earnings call. If you would like to ask a question during that time, simply press star, then the number one on your telephone keypad. If you would like to withdraw your question, simply press star then the number one again on your telephone keypad. I will now turn the webcast over to Dewey Stenum, head of investor relations at United Therapeutics.

Good morning. Thank you, Dennis. It's my pleasure to welcome you to the United Therapeutics Corporation second quarter 2022 earnings webcast. Accompanying me on today's call are Dr. Martine Rothblatt, our chairperson and chief executive officer, Michael Benkowitz, our President and Chief Operating Officer, James Edgmund, our Chief Financial Officer and Treasurer, Pat Poisson, our Executive Vice President of Technical Operations, and Dr. Lee Peterson, our Senior Vice President of Product Development. Remarks today will include forward-looking statements representing our expectations or beliefs regarding future events. These statements involve risks and uncertainties that may cause actual results to differ materially. Our latest SEC filings, including Forms 10-K and 10-Q, contain additional information on these risks and uncertainties. We assume no obligation to update forward-looking statements. Today's remarks may discuss progress and details of clinical trials or other developments with respect to our products. These remarks are intended solely to educate investors and are not intended to serve as the basis for medical decision-making or to suggest that any products are safe and effective for any unapproved or investigational uses. And full prescribing information for these products are available on our website. Now I'll turn the webcast over to Dr. Rothblatt for an overview of the second quarter 2022 financial results and business activities of United Therapeutics. Martin?

Thanks, Dewey. Good morning, everyone, and welcome to our second quarter 2022 earnings call. We've hammered all of our numbers this past quarter, and the 31% growth reported in our Tyveso sales is truly impressive. actually for me even eye-popping, and very comforting because we continue at this 30-plus percent growth rate year over year. We will have achieved our stated goal of 25,000 patients. Well, we double our numbers every two and a half years at that percentage growth rate, so we will be able to achieve our 25,000 patient goal on target. Rather than have me read the entire release, Why don't we take a kind of 30,000 foot strategic overview of where we are and where we are going. We are now at nearly a $2 billion per year revenue run rate. And that really puts us on the cusp of three new generations of revenue at United Therapeutics. So I'm going to like stand at this where we are right now at a $2 billion revenue run rate and look out and see where are we going to go from here. And I think that there are three peaks coming in the years ahead. The first generation, or the first next peak of revenue, will be to double our $2 billion of revenue to around 2025 by expansion of our oral, inhaled, and cranial products in pulmonary hypertension. These products include our launched products, such as Arenatram, Tyveso, Tyveso DPI, and Revunity, as well as our late-stage pipeline products, such as Relenopeg and Tybaso for COPD. The launch products alone get us to a revenue doubling, as I just described in the beginning of my presentation, largely just by penetration of WHO Group 3 pulmonary hypertension by Tybaso, the type of results that you see so outstandingly presented in this quarter's numbers. All of the pipeline products are actually just additional gravy to getting us to that goal. Now at that point, this second generation of revenue kicks in above $4 billion. So going from the $2 billion revenue run rate where we are right now to the $4 billion is accomplished overwhelmingly with just our launching products. The second generation of revenue kicks in above and beyond that $4 billion threshold which we should achieve around 2025, with approval of our T-Ton studies as the basis of a disease-modifying treatment and the first disease-modifying treatment for ITF. Here we forecast an additional $4 billion in revenue coming from about 40,000 patients at roughly speaking $100,000 per year. With those kind of numbers, we should be able to close out the 2020s with about $8 billion in revenue annually, roughly half from pulmonary hypertension and half from pulmonary fibrosis. By that time, we'll be ready to monetize our organ manufacturing business with thousands of kidneys, hearts, and lungs, bringing us well over $10 billion in revenue in the 2030s. So that organ manufacturing business is the third peak that we would achieve in the years ahead. In summary, at the 30,000-foot level, we expect greater than five-fold growth in eight or so years. Now that I've shared where we are and where we are going and where after that, let me now turn the podium over to Michael Benkiewicz, our president, for more of a deep dive.