United Therapeutics' (UTHR) Q2 miss for Tyvaso reflected pressure from rising competition, though the drug could see a meaningful increase in outreach to idiopathic pulmonary fibrosis patients starting late in Q3 as the company expands its sales force, Morgan Stanley said in a Wednesday research note.

United Therapeutics reported Q2 EPS of $7.27, beating Morgan Stanley's $7.04 estimate and the $6.86 consensus forecast. Revenue and Tyvaso sales, however, missed expectations.

The company sees a narrow path to a $4 billion annualized revenue run rate by the end of 2027, supported by Tyvaso and ralinepag revenue in pulmonary arterial hypertension, Morgan Stanley said.

However, the timing of FDA reviews remains a key factor in achieving that target.

United Therapeutics withdrew its prior 2026 revenue-growth guidance but expects its performance in the second half of the year to improve from the first half, according to the note.

Morgan Stanley reiterated its equal-weight rating on the stock and trimmed its price target to $515 from $516.

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