Liquidia surges as United Therapeutics settlement removes key litigation risk
UTHR•Liquidia shares jumped nearly 37% in premarket trading after it settled six lawsuits with United Therapeutics over its Yutrepia lung disease drug. Liquidia will stop promoting Yutrepia for PH-ILD, continue selling it for PAH and pay United Therapeutics about $380.7 million in installments through 2027.
1. Settlement terms
The settlement ends six lawsuits over patents, trade secrets, contracts and antitrust claims related to Liquidia’s Yutrepia, an inhaled dry-powder form of treprostinil. Liquidia will stop promoting the drug for PH-ILD but continue selling it for PAH, and will pay United Therapeutics about $380.7 million in installments through 2027. Chief Financial Officer Michael Kaseta said Liquidia expects to fund the payments from Yutrepia sales and cash on hand.
2. Impact on the companies
Liquidia will not appeal the ruling and has asked the U.S. Food and Drug Administration to remove PH-ILD from Yutrepia’s label. United Therapeutics said Liquidia will end PH-ILD trial cohorts and stop publishing related data. Analysts said the settlement removes a major legal risk for Liquidia and could improve visibility into future Tyvaso growth in PH-ILD.
