Liquidia surges after $381 million settlement with United Therapeutics for lung disease drug
LQDA•Liquidia shares jumped nearly 40% in premarket trading after it agreed to pay United Therapeutics about $380.7 million through 2027 to settle six lawsuits. Liquidia will stop promoting Yutrepia for PH-ILD but continue selling it for PAH.
1. Settlement terms
The settlement ends six lawsuits involving patents, trade secrets, contracts and antitrust claims related to Liquidia’s Yutrepia, an inhaled dry-powder form of treprostinil. Liquidia will pay United Therapeutics about $380.7 million in installments through 2027 and will not appeal the court ruling.
2. Yutrepia sales
Liquidia will continue selling Yutrepia for pulmonary arterial hypertension (PAH), but stop promoting it for pulmonary hypertension linked to interstitial lung disease (PH-ILD). The company has asked the US Food and Drug Administration to remove PH-ILD from the drug’s label. United Therapeutics said Liquidia will also terminate PH-ILD trial cohorts and cease publication of related data.
3. Company and analyst views
Liquidia Chief Financial Officer Michael Kaseta said the company expects to fund the payments from Yutrepia sales and cash on hand. Jefferies analyst Manoj Eradath said he views Liquidia primarily as a Yutrepia growth story in PAH, with potential from label expansion and its late-stage experimental drug L606. J.P. Morgan analyst Jessica Fye said the payment was better than expected for United Therapeutics.
