United Therapeutics (UTHR) is poised to unlock a large market opportunity with its lead drug Tyvaso shaping up to be a differentiated idiopathic pulmonary fibrosis treatment, RBC Capital Markets said in a note Friday.

The company announced earlier this month that Tyvaso achieved statistically significant benefits in idiopathic pulmonary fibrosis, or IPF, sending the stock 32% higher and adding $5 billion in market capitalization on Sept. 2, according to the note.

Analysts said investor excitement is understandable, given the large market of about 100,000 IPF patients in the US alone. RBC also said there's a big chance that Tyvaso will enjoy seven years orphan drug exclusivity.

Tyvaso is currently approved as a treatment for pulmonary hypertension associated with interstitial lung disease, but faces near-term pressure from Liquidia's (LQDA) Yutrepia, which was launched in May, although there has been "minimal switching" from Tyvaso among patients, the firm said.

RBC initiated coverage on United Therapeutics with an outperform rating and a $569 price target.

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