SILVER SPRING, Md. & RESEARCH TRIANGLE PARK, N.C. - United Therapeutics (NASDAQ:UTHR) Corporation (NASDAQ:UTHR), a biotechnology firm, announced today the authorization of a stock repurchase program of up to $1 billion. This move follows the company's recent $100 million paydown of its revolving credit facility, with an additional $400 million planned for later in 2024.
The company will enter into an Accelerated Share Repurchase (ASR) agreement with Citibank, N.A. to facilitate the repurchase. The initial transaction will involve an upfront payment of $1 billion to Citibank, with immediate delivery of shares approximating 80% of the total number to be repurchased, based on United Therapeutics' closing stock price as of today.
Martine Rothblatt, Ph.D., Chairperson and CEO of United Therapeutics, expressed confidence in the company's financial position and innovative approach to treating end-stage organ disease, including developing technologies for transplantable organs. Rothblatt believes the stock repurchase represents a solid investment to enhance long-term shareholder value.
The ultimate number of shares repurchased will depend on the average daily volume-weighted average price per share during the ASR term, with final settlement expected in the second and third quarters of 2024 for different portions of the ASR agreement.
United Therapeutics, which operates as a public benefit corporation, focuses on developing pharmaceutical therapies and technologies to increase the availability of transplantable organs.
The information in this article is based on a press release statement from United Therapeutics Corporation.
InvestingPro Insights
United Therapeutics Corporation's recent announcement of a stock repurchase program up to $1 billion underscores its robust financial health and commitment to delivering shareholder value. The company's financial strength is further highlighted by real-time data from InvestingPro, which shows a market capitalization of approximately $11.2 billion. This valuation is supported by a strong gross profit margin of 88.94% over the last twelve months as of Q4 2023, reflecting the company's efficient operations and solid market position.
Additionally, United Therapeutics holds a low price-to-earnings (P/E) ratio of 11.28, which is adjusted to 11.48 when considering the last twelve months as of Q4 2023. This P/E ratio, juxtaposed with a PEG ratio of 0.35 during the same period, suggests that the stock is trading at a low valuation relative to near-term earnings growth. For investors, this might indicate an attractive entry point, especially when considering the company's strong fundamentals.
InvestingPro Tips for United Therapeutics also reveal that the company has more cash than debt on its balance sheet, and its cash flows can sufficiently cover interest payments. This financial stability, coupled with the fact that analysts predict the company will be profitable this year, may provide further confidence for investors considering United Therapeutics as part of their portfolio.
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