LQDA Explodes After Hours On Deal Ending Years Of Patent Fight, Keeping YUTREPIA On Market

(MENAFN- AsiaNet News)

• YUTREPIA will remain available without interruption for PAH patients.
• Liquidia has submitted a supplement to remove the PH-ILD indication from the drug label and has stopped promoting the product for that use.
• Liquidia will make net payments of $380.7 million in installments during 2026 and 2027 as part of the settlement.

Liquidia Corporation (LQDA) shares rose sharply in after-hours trading Monday after the company announced a global settlement with United Therapeutics (UTHR) that ends years of litigation and secures continued sales of its YUTREPIA inhalation powder for pulmonary arterial hypertension (PAH).

LQDA closed the regular session at $26.81, down 3.1%, before climbing roughly 51% after hours. United Therapeutics shares, which closed at $543.40, were little changed after hours.

LQDA-UTHR Settlement Ends All Pending Cases

The agreement resolves all six ongoing lawsuits between the companies and related parties. This includes patent infringement cases, trade-secret and contract claims in North Carolina state court, and an antitrust matter tied to Treprostinil Injection.

The settlement follows a September 30, Delaware federal court ruling that claims 1 and 14 of the patent in question-covering treatment of pulmonary hypertension associated with interstitial lung disease (PH-ILD) with inhaled treprostinil, including dry-powder forms such as YUTREPIA-are valid and infringed by Liquidia. Liquidia agreed not to appeal that decision.

YUTREPIA Continues For PAH; PH-ILD Dropped

YUTREPIA will remain available without interruption for PAH patients. Liquidia has submitted a supplement to remove the PH-ILD indication from the drug label and has stopped promoting the product for that use. The settlement does not cover indications beyond PAH or new treprostinil-containing products.

Liquidia also terminated its promotional agreement for Treprostinil Injection and will no longer support that product commercially. The company said it will continue advancing YUTREPIA and its investigational L606 program as previously planned.

LQDA's Payments Will Total $380.7M

Liquidia will make net payments of $380.7 million in installments during 2026 and 2027. This includes a $175 million net payment to United Therapeutics within 30 business days, two $72.7 million installments due by January 31 and April 30, and $60.3 million this month to other parties with interests in the Treprostinil Injection antitrust litigation.

Liquidia expects to fund the payments from ongoing YUTREPIA sales and cash on hand. Preliminary unaudited third-quarter results showed YUTREPIA net product sales of $222.7 million and cash and equivalents of $396.1 million as of September 30, the company said. Management said it anticipates rebuilding cash and funding clinical programs without additional financing.

Liquidia CEO Roger Jeffs said the deal“fully resolves years of litigation and provides certainty to PAH patients that they can continue to access YUTREPIA,” allowing the company to focus on growing the brand in the indication.

Chief Operating Officer and CFO Michael Kaseta added that the company is confident it can meet the obligations while continuing to invest in the business.

How Did LQDA, UTHR Retail Traders React?

On Stocktwits, retail sentiment around LQDA stock rose from 'bearish' to 'neutral' territory over the past 24 hours, while message volume increased from 'normal' to 'high' levels.

Meanwhile, sentiment around UTHR stock stayed within 'neutral' levels.

A Stocktwits user voiced optimism about the company dismissing the need for any capital raising.

View this Stocktwits post

Another noted that the stock was trading way higher before the litigation and termed the settlement news as huge.

View this Stocktwits post

While LQDA stock has fallen by about 22% year-to-date, UTHR has gained 12%. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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