United Therapeutics buys out Pfizer royalty for $525 million

United Therapeutics (NASDAQ: UTHR) will pay $525M upfront to end Pfizer royalties on ralinepag, an investigational pulmonary disease treatment. The deal removes future royalties but keeps $400M in potential milestone payments. Ralinepag's FDA review is set for June 2027.

United Therapeutics (UTHR) acquired Pfizer's (PFE) royalty interest in ralinepag, a lung disease therapy, for $525M. This eliminates UTHR's royalty obligations to PFE. UTHR reported Q3 2026 revenue of $832.5M, up 4% YoY, beating estimates by $51.3M. The FDA is reviewing a new drug application for ralinepag, with a decision expected by June 24, 2027.

Pfizer plans to launch its Lyme disease vaccine in Europe in November 2026, leveraging its existing infrastructure for tick-borne encephalitis treatments. The company aims to address rising Lyme disease cases in the U.S. but sees Europe as the initial market for the vaccine.

United Therapeutics (UTHR) reported Q3 2026 revenue of $832.5M, up 4% YoY, but net income fell 24% to $258.6M due to higher R&D spending and competitive pressures. EPS declined 20% to $5.71. Tyvaso DPI sales rose 13%, while nebulized Tyvaso fell 12%. R&D expenses surged 119% to $279.2M, partly due to the Thymmune acquisition. The company repurchased shares under a 10b5-1 plan and a $2B repurchase program.

Pfizer and Valneva's Lyme disease vaccine is nearing regulatory submission, with Europe likely being the first market. The FDA submission may occur by year-end, according to analysts. The EMA has begun its review, with a decision expected in 2027. Pfizer sees Europe as a strategic starting point due to its existing tick-borne vaccine portfolio and sales infrastructure.

United Therapeutics (UTHR) paid $525M to Pfizer to eliminate royalties on ralinepag, a drug for pulmonary arterial hypertension. The FDA is reviewing an NDA for oral ralinepag, with a decision expected by June 2027. The company is also developing an inhaled version for other pulmonary conditions.