Liquidia slumps after US court rules for United Therapeutics in patent fight
LQDA•Liquidia shares plunged nearly 50% after a federal judge ruled that its Yutrepia drug infringed two claims of United Therapeutics’ patent. Liquidia plans to ask the FDA to remove Yutrepia’s PH-ILD indication and said it will pursue available appeals.
1. Patent ruling
The US District Court for the District of Delaware found that Liquidia’s dry-powder drug Yutrepia infringed two foundational claims of United Therapeutics’ ’327 patent, which covers methods of treating pulmonary hypertension-associated interstitial lung disease using inhaled treprostinil and certain dry-powder delivery features.
2. Company responses
The court also denied Liquidia’s motion to strike evidence about United Therapeutics’ patent ownership, finding that Liquidia had adequate notice before trial and did not make timely objections. Liquidia CEO Roger Jeffs said the company disagrees with the decision and is prepared to pursue available appellate options; he said it plans to ask the FDA to remove the PH-ILD indication from Yutrepia’s label.
3. Share moves
Liquidia shares hit their lowest level in nearly four months and were on track to lose about $3.18 billion in market value if losses held. United Therapeutics shares rose 12.3% to $540.54. Analysts said a final judgment was expected in about a week.
