United Therapeutics Corporation (NASDAQ:UTHR) Q4 2023 Earnings Call Transcript

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James Edgemond: Yes. Thank you, Martine. Andreas, it’s good to hear your voice this morning. I think you had two questions kind of weaved in, and I’ll start with capital allocation, and then corporate development. But our capital allocation priorities Andreas, are still unchanged. We have three priorities in order, which are internal research and development, business and corporate development and then return of capital to shareholders. And we see ample opportunities to invest in ourselves in complementary businesses, at this time. And at the JPMorgan conference in January, Martine laid out the need to quickly access and deploy capital to support the potential commercial scale build-out of DPS facilities. And this could be several billions of dollars of CapEx over the next several years.

And so, there was a good discussion at the conference, with respect to capital allocation and specifically looking at manufactured organs. Now with respect to business and corporate development, we are constantly looking for potential acquisitions and also in-license opportunities. We tend to be most interested in complementary products and platforms that focus on rare lung and other cardiovascular diseases. But as you’ve also seen recently, that we disclosed in the 10-K, we did a couple of acquisitions being IVIVA and Miromatrix. They were focused on organ manufacturing. So we’re looking across the board, and things that really complement the strengths of Unitherians internally and add to the research and development we’re doing. So thank you for the question.

And Martine, back to you.

Martine Rothblatt: Yes. I’m going to bounce it over to Mike, to talk about the…

Michael Benkowitz: Yes. So I think Andreas, your first question was leading to sort of safety questions, with new therapies and how that’s — how we think about that and how that’s typically handled. And really I think it’s a question, as it relates to competitors, I think it’s really a question for prescribers and for those manufacturers, to be honest. I think there is a safety profile that’s presented as part of the clinical efficacy, and I think the physicians have to kind of look at that and the way the benefit/risk of that product, relative to the patient’s disease other products that are available. And then as I said at the very beginning, it really kind of comes down to a case dependent decision. So, we’ll just kind of see, how that plays out over time.

James Edgemond: Great. All right. Well, Leigh I think you’re off the hook, because I think Mike commented enough on the safety question. And operator, back to you.

Operator: Thank you for participating in today’s United Therapeutics Corporation Earnings Webcast. A rebroadcast of this webcast will be available for replay for one week by visiting the Events and Presentations section of the United Therapeutics Investor Relations website at ir.unither.com. The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.

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