Why United Therapeutics Corporation Shares Soared

Before you go, we thought you'd like these...
Before you go close icon

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of United Therapeutics , a biopharmaceutical company developing therapies to treat unmet diseases and disorders, popped as much as 26% after announcing the approval of Orenitram (previously treprostinil) -- an oral treatment for pulmonary arterial hypertension (PAH) -- by the Food and Drug Administration after the bell on Friday.

So what: According to United Thereapeutics' press release, the approval of Orenitram marks its fifth such indication to treat PAH. The approval followed a late-stage trial whereby patients who were administered Orenitram twice daily demonstrated a 23-meter improvement in walking distance over six minutes compared to the placebo. United Therapeutics ran two additional studies utilizing Orenitram, but noted that it "did not demonstrate a benefit in exercise with median 6MWD at Week 16."

Now what: Slowly but surely, United Therapeutics is building itself quite the array of products to treat PAH. Having such a wide array of therapies available could make it the go-to company for PAH treatments and also assure it strong pricing power for years to come. On the flipside, though, I still remain a bit concerned about the subpoena it received two weeks ago that requests documents related to the marketing practices of its three best-selling drugs. Sometimes these investigations turn up nothing or result in just a slap on the wrist. But I'd rather be safe than sorry and would suggest sticking to the sidelines after today's catapult higher.

Here's the stock you should be watching like a hawk instead
Opportunities to get wealthy from a single investment don't come around often, but they do exist, and our chief technology officer believes he's found one. In this free report, Jeremy Phillips shares the single company that he believes could transform not only your portfolio, but your entire life. To learn the identity of this stock for free and see why Jeremy is putting more than $100,000 of his own money into it, all you have to do is click here now.

The article Why United Therapeutics Corporation Shares Soared originally appeared on Fool.com.

Fool contributor  Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle  @TMFUltraLong . Try any of our Foolish newsletter services free for 30 days . We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights  makes us better investors. The Motley Fool has a disclosure policy .

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

People are Reading