On Monday, BTIG reaffirmed its Buy rating and $25.00 price target for Liquidia Technologies (NASDAQ:LQDA), following legal developments involving the company's product Yutrepia. The Supreme Court of the United States has declined to review a challenge by United Therapeutics (NASDAQ:UTHR) Corporation (Neutral) regarding the '793 patent, which pertained to the use of DPI treprostinil in pulmonary hypertension (PH). This decision effectively invalidates the '793 patent, removing any potential legal barriers for Liquidia.
The analyst from BTIG noted that the FDA has granted tentative approval to Yutrepia for the treatment of both pulmonary arterial hypertension (PAH) and PH associated with interstitial lung disease (PH-ILD). The final approval for Yutrepia now hinges on the expiration of the new chemical entity (NCE) exclusivity granted to Tyvaso DPI, which is set to expire in May 2025. There is also the possibility of an earlier full approval if the NCE determination is reversed before this date.
Liquidia Technologies is now positioned to advance without the threat of legal injunctions from United Therapeutics regarding the '793 patent. The resolution of this patent dispute marks a significant step forward for Liquidia as it seeks to bring Yutrepia to market for patients with PAH and PH-ILD.
The outcome of this legal proceeding could potentially expedite the availability of Yutrepia to patients, depending on the future decisions related to the NCE exclusivity of Tyvaso DPI. The full commercial launch of Yutrepia is anticipated to follow the resolution of the NCE exclusivity period or its earlier reversal.
In other recent news, Liquidia Technologies reported a decrease in Q2 2024 revenue, down to $3.7 million from $4.8 million in the same period last year. Despite this, the company maintains a cash reserve of $133 million. The company is also involved in legal challenges, facing a renewed lawsuit from United Therapeutics Corporation, and has initiated legal proceedings against the FDA over the agency's grant of a 3-year new clinical investigation exclusivity to United Therapeutics' drug Tyvaso DPI®.
Liquidia also secured approximately $100 million for cardiopulmonary drug development, which will support the development of YUTREPIA and other clinical trials. LifeSci Capital initiated coverage of Liquidia Technologies, setting an Outperform rating. Other firms such as H.C. Wainwright, BofA Securities, Jefferies, and BTIG have adjusted their stock price targets for Liquidia, while Goldman Sachs retained a Neutral rating for United Therapeutics.
InvestingPro Insights
As Liquidia Technologies (NASDAQ:LQDA) approaches a potential market entry for Yutrepia, InvestingPro data provides additional context for investors. The company's market capitalization stands at $950.94 million, reflecting investor optimism about its future prospects. Despite the positive legal developments, InvestingPro Tips highlight that analysts anticipate a sales decline in the current year, and the company is not expected to be profitable this year.
However, Liquidia's financial position shows some strengths. An InvestingPro Tip notes that the company's liquid assets exceed short-term obligations, suggesting a solid near-term financial footing as it prepares for Yutrepia's potential launch. Additionally, the company has delivered a strong return over the last year, with a one-year price total return of 51.51%.
Investors should note that Liquidia is trading at a high revenue valuation multiple, which may reflect market expectations for future growth once Yutrepia enters the market. For a more comprehensive analysis, InvestingPro offers 11 additional tips for Liquidia Technologies, providing deeper insights into the company's financial health and market position.
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