Liquidia Corporation (NASDAQ:LQDA) shares jumped 42.48% to $38.20 after the bell on Tuesday after the company announced a global settlement with Maryland-based biotechnology and pharmaceutical company United Therapeutics Corporation (NASDAQ:UTHR) that resolves all pending litigation.
Patent Ruling Forces Label Change
According to Liquidia, a biopharmaceutical company based in North Carolina, the settlement follows a Sept. 30 ruling by the U.S. District Court for the District of Delaware. The court found that UTHR’s patent claims were valid and infringed by Liquidia. The claims cover inhaled treprostinil treatment for pulmonary hypertension associated with interstitial lung disease (PH-ILD).
Liquidia agreed not to appeal and filed to remove the PH-ILD indication from YUTREPIA’s label. The settlement includes mutual releases and is not an admission of liability by either party.
YUTREPIA, an inhaled dry-powder form of treprostinil approved in 2025, will continue to be available to patients with pulmonary arterial hypertension (PAH) without interruption, the company said. PAH is a rare, progressive disease with no cure that affects about 45,000 diagnosed patients in the U.S.
Sales and Cash to Fund Payouts
Liquidia will pay UTHR a net $175 million within 30 business days, plus $145.4 million in two $72.7 million installments due Jan. 31 and Apr. 30, 2027. It will also pay $60.3 million this month to resolve antitrust-related interests.
Chief Operating Officer and Chief Financial Officer Michael Kaseta said, “We expect to fund the outlined payments from the ongoing sales of YUTREPIA and cash on hand.”
Preliminary, unaudited third-quarter YUTREPIA net product sales were $222.7 million. Cash and equivalents totaled $396.1 million as of Sept. 30.
Trading Metrics, Technical Analysis
| Metric | Liquidia | United Therapeutics |
|---|---|---|
| Market Capitalization | $2.40 billion | $23.31 billion |
| Annual Trading Range | $21.94–$93.61 | $409.15–$609.35 |
| 1-Year Gain | 17.74% | 25.32% |
LQDA has a Relative Strength Index (RSI) of 22.47.
Price Action: According to Benzinga Pro data, the Liquidia stock closed the regular session at $26.81, down 3.11%.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo: Jirapong Manustrong / Shutterstock
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