Liquidia Settles Patent Dispute With United Therapeutics, Securing YUTREPIA Access
Liquidia Corporation (LQDA) reached a global settlement with United Therapeutics Corporation (UTHR) to resolve six pending lawsuits, ending years of legal battles across patent infringement, trade-secret, contract, and antitrust claims. Following the announcement, Liquidia shares surged roughly 51% in after-hours trading after closing regular hours down 3.11% at $26.81. United Therapeutics stock closed regular hours down 1.22% at $543.40 and was little changed after hours.
The agreement ensures that Liquidia's YUTREPIA inhalation powder will remain available without interruption for patients with pulmonary arterial hypertension (PAH). In exchange, Liquidia agreed to drop the indication for pulmonary hypertension associated with interstitial lung disease (PH-ILD) from YUTREPIA's label following a Delaware federal court ruling, and it ended its commercial support for Treprostinil Injection. Liquidia will make total net payments of $380.7 million in installments through 2027, starting with $175 million to United Therapeutics within 30 business days.
Liquidia expects to cover the settlement costs using existing cash and ongoing revenue from YUTREPIA, eliminating the need for outside financing. The company held $396.1 million in cash and equivalents as of September 30, alongside preliminary third-quarter YUTREPIA net sales of $222.7 million. Investors will be monitoring Liquidia's execution on YUTREPIA sales as it works to rebuild its cash reserves while advancing its investigational L606 pipeline program.
Key points
- Liquidia Corporation and United Therapeutics Corporation settled all six pending lawsuits, resolving long-standing patent, contract, and antitrust disputes.
- YUTREPIA will stay available for pulmonary arterial hypertension patients, but Liquidia removed the indication for interstitial lung disease.
- Liquidia will pay $380.7 million in total net installments during 2026 and 2027, including $175 million to United Therapeutics within 30 business days.
- Liquidia plans to fund the settlement through cash on hand and YUTREPIA revenue without raising additional capital.
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Why did Liquidia stock surge in after-hours trading?
Liquidia stock surged after the company reached a global settlement with United Therapeutics, resolving six ongoing lawsuits and securing uninterrupted sales of its drug YUTREPIA for pulmonary arterial hypertension.
How much is Liquidia paying to settle the litigation?
Liquidia will pay $380.7 million in net installments in 2026 and 2027. This includes $175 million to United Therapeutics within 30 business days, two $72.7 million payments in early 2027, and $60.3 million to antitrust litigation parties.
Will YUTREPIA remain on the market after the settlement?
Yes, YUTREPIA will remain available for patients with pulmonary arterial hypertension. However, Liquidia removed the indication for pulmonary hypertension associated with interstitial lung disease from the drug label.