Liquidia stock surges 40% on $380.7M litigation settlement with UTHR
Liquidia stock surges 40% on $380.7M litigation settlement with UTHR
Liquidia Corporation (NASDAQ:LQDA) shares jumped around 40% in after-hours trading Tuesday following the announcement of a global settlement agreement with United Therapeutics Corporation (NASDAQ:UTHR) that resolves all pending litigation between the companies for $380.7 million.
The settlement fully resolves six ongoing lawsuits and ensures uninterrupted access to YUTREPIA (treprostinil) inhalation powder for patients with pulmonary arterial hypertension. As part of the agreement, Liquidia will pay a net $175 million within 30 business days, followed by two equal installments of $72.7 million due on or before January 31, 2027, and April 30, 2027.
The settlement follows a September 30, 2026 ruling by the U.S. District Court for the District of Delaware that claims of U.S. Patent No. 11,826,327 are valid and infringed by Liquidia. The patent covers treatment of pulmonary hypertension associated with interstitial lung disease with inhaled treprostinil. Liquidia has agreed not to appeal the ruling and has submitted a supplement to remove the PH-ILD indication from YUTREPIA's label.
In connection with the settlement, Liquidia will pay an aggregate of $60.3 million this month to parties with interests in antitrust litigation related to Treprostinil Injection. The company has also terminated the promotional agreement for Treprostinil Injection and will no longer commercially support the product.
Liquidia reported preliminary, unaudited third quarter 2026 YUTREPIA net product sales of $222.7 million, contributing to cash and cash equivalents of $396.1 million as of September 30, 2026. The company expects to fund the settlement payments from ongoing YUTREPIA sales and cash on hand without requiring additional financing.
The settlement includes mutual releases and is not an admission of liability by either party. Liquidia will provide a broader update on its financial position and pipeline priorities during its third-quarter 2026 earnings call in November.