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Liquidia and United Therapeutics Settle All Pending Patent and Antitrust Litigation

MixedHigh impact
LQDA$26.81 −3.11%UTHR$543.40 −1.22%

Liquidia Corporation (NASDAQ:LQDA) has entered into a global settlement agreement with United Therapeutics Corporation (NASDAQ:UTHR) to resolve all pending legal disputes between the two biopharmaceutical companies. Under the agreement, YUTREPIA inhalation powder will remain available without disruption for patients with pulmonary arterial hypertension. Liquidia agreed not to appeal a court ruling regarding patent infringement for the pulmonary hypertension associated with interstitial lung disease indication, and has submitted a supplement to remove that indication from YUTREPIA's label.

The settlement ends years of litigation, including patent, trade secret, and antitrust matters. Financial obligations include a net payment by Liquidia to United Therapeutics of $175 million within 30 business days, followed by two installments of $72.7 million due by January 31, 2027, and April 30, 2027. Liquidia will also pay $60.3 million to settle third-party interests tied to Treprostinil Injection antitrust litigation. Liquidia expects to fund these payments using cash on hand and ongoing YUTREPIA sales, having reported preliminary third-quarter 2026 YUTREPIA net sales of $222.7 million and cash reserves of $396.1 million as of September 30, 2026.

Investors should monitor Liquidia's upcoming full third-quarter 2026 earnings report in November for detailed financial updates. Attention will also turn to Liquidia's pipeline initiatives, including planned clinical studies for L606 and potential new indications for YUTREPIA. Shares of Liquidia Corporation fell 3.11% to $26.81, while United Therapeutics Corporation slipped 1.22% to $543.40.

Key points

  • Liquidia Corporation and United Therapeutics Corporation reached a global settlement ending all pending litigation between the two companies.
  • YUTREPIA remains available for pulmonary arterial hypertension patients, but Liquidia removed the indication for pulmonary hypertension associated with interstitial lung disease.
  • Liquidia will make a net payment of $175 million within 30 business days, plus two equal installments of $72.7 million in 2027 and $60.3 million for antitrust obligations.
  • Liquidia reported preliminary third-quarter 2026 YUTREPIA sales of $222.7 million and held $396.1 million in cash as of September 30, 2026.

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Questions and answers

What did Liquidia and United Therapeutics agree to in their settlement?

The companies settled all pending legal disputes, allowing Liquidia to continue commercializing YUTREPIA for pulmonary arterial hypertension while dropping its indication for interstitial lung disease.

How much will Liquidia pay to settle the litigation with United Therapeutics?

Liquidia will pay a net $175 million within 30 business days, two $72.7 million installments in early 2027, and $60.3 million to resolve related antitrust litigation interests.

Will YUTREPIA still be available to patients with PAH?

Yes, YUTREPIA will remain available without disruption to patients with pulmonary arterial hypertension.