United Therapeutics Corporation has a market cap of $2.34 billion; its shares were traded at around $45.67 with a P/E ratio of 9.7 and P/S ratio of 3.2.
Highlight of Business Operations:In September 2011, we were awarded a cost plus fixed fee contract with an aggregate value of up to $45.0 million under a Broad Agency Announcement from the U.S. National Institute of Allergy and Infectious Diseases (NIAID) for studies directed at the development of a broad spectrum antiviral drug based on our glycobiology antiviral platform. Under the contracts base period of forty-two months, we will receive $10.6 million in funding. In addition, there are eight milestone-based options to expand the project and funding under the contract. In August 2012, we received a contract modification exercising two of the above-mentioned milestone-based options, increasing total contract funding by $8.7 million. We recognize revenue on this contract to the extent of costs incurred, plus a proportionate amount of fee earned.
Accounts receivable at September 30, 2012, were $108.9 million, compared to $88.7 million at December 31, 2011. The increase in accounts receivable of $20.3 million was attributable to the increase in sales during the quarter ended September 30, 2012 as compared to the quarter ended December 31, 2011.
Accrued expenses were $87.6 million at September 30, 2012, compared to $57.2 million at December 31, 2011. The increase of $30.4 million consisted substantially of the following elements: (1) a $15.0 million accrual for non-refundable license fees; (2) a $4.3 million increase in accrued royalties and rebates corresponding to the increase in sales; (3) a $4.0 million increase in accrued payroll-related expenses due to the growth in headcount during the year; and (4) a $6.2 million increase in various other accruals relating to our operations.
General and administrative. The increase in general and administrative expenses of $8.0 million for the quarter ended September 30, 2012 compared to the same quarter in 2011 was driven mainly by a $3.7 million increase in grants to unaffiliated, not-for-profit organizations that provide financial assistance to PAH patients and a $2.6 million increase in depreciation and operating expenses as a result of the expansion of our corporate headquarters in Maryland and our facilities in North Carolina.
General and administrative. The increase in general and administrative expenses of $14.6 million for the nine months ended September 30, 2012 compared to the same period in 2011 was driven by the following: (1) the recognition of a $6.8 million impairment loss relating to a contract-based intangible asset as described in Note 6Goodwill and Other Intangible Assets to the consolidated financial statements contained in this Quarterly Report on Form 10-Q; (2) an increase of $3.8 million in depreciation as a result of the expansion of our corporate headquarters in Maryland and our facilities in North Carolina; and (3) a $3.5 million increase in grants to unaffiliated, not-for-profit organizations that provide financial assistance to PAH patients.
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