UPDATE: Citadel Securities Color on United Therapeutics Downgrade

Citadel Securities, which downgraded shares of United Therapeutics Corp. (NASDAQ: UTHR), is providing some color on the stock.

“We are downgrading UTHR shares to Neutral from Add following the announcement of disappointing data from the FREEDOM-M study evaluating oral treprostinil monotherapy in pulmonary arterial hypertension,” Citadel Securities writes.

“The study demonstrated a median improvement in six-minute walk distance (6MWD) of 23 meters versus placebo (p=0.0125) in patients who had access to the 0.25mg dose at randomization; however, although statistically significant, the benefit was below investor expectations and raises questions as to the likelihood of success in the ongoing FREEDOM-C2 study. Importantly, the company intends to await data from FREEDOM-C2 prior to filing the NDA for oral treprostinil, which in our view represents a conservative strategy.”

United Therapeutics closed Monday at $59.00.