Liquidia Settles Lawsuit With United Therapeutics to Keep Yutrepia on Market
Shares of Liquidia Corporation (NASDAQ:LQDA) jumped after the drugmaker settled all pending legal disputes with rival United Therapeutics Corporation (NASDAQ:UTHR). Under the settlement agreement, Liquidia will pay $380.7 million to United Therapeutics while keeping its pulmonary arterial hypertension treatment, Yutrepia, available on the market.
The settlement resolves years of patent litigation concerning the lung-disease therapy treprostinil and eliminates major legal uncertainty for Liquidia. In exchange, Liquidia agreed to modify Yutrepia's label to remove the indication for pulmonary hypertension associated with interstitial lung disease, focusing its commercial efforts exclusively on pulmonary arterial hypertension.
Moving forward, investors will track Liquidia's commercial focus on the pulmonary arterial hypertension market following stronger-than-expected preliminary third-quarter sales for Yutrepia. Market participants will also monitor ongoing sales expectations along with progress on L606, Liquidia's investigational formulation of treprostinil.
Key points
- Liquidia Corporation agreed to pay $380.7 million to United Therapeutics Corporation to resolve all outstanding litigation.
- The settlement allows Liquidia to keep its pulmonary arterial hypertension drug, Yutrepia, on the market.
- Liquidia agreed to remove Yutrepia's indication for pulmonary hypertension associated with interstitial lung disease.
- Liquidia shares gained over 25% following the news of the agreement.
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Why did Liquidia stock jump?
Liquidia stock rose after the company reached an agreement to settle all pending litigation with United Therapeutics Corporation, removing major uncertainty around its drug Yutrepia.
What are the main terms of the Liquidia settlement?
Liquidia will pay United Therapeutics $380.7 million and drop Yutrepia's indication for pulmonary hypertension associated with interstitial lung disease, while retaining the rights to sell the drug for pulmonary arterial hypertension.
Will Liquidia continue selling Yutrepia?
Yes, Liquidia will keep Yutrepia on the market, focusing its commercial efforts solely on treating pulmonary arterial hypertension.