Liquidia Settles United Therapeutics Patent Dispute for $380.7 Million
Liquidia Corporation (NASDAQ:LQDA) agreed to a $380.7 million settlement with United Therapeutics Corporation (NASDAQ:UTHR) to resolve six active lawsuits. Under the terms, Liquidia will make an initial $175 million payment within 30 business days, followed by two installments of $72.7 million due by January 31 and April 30, 2027. The company will also pay $60.3 million this month to resolve related antitrust litigation.
The agreement ends ongoing legal uncertainty after a September 30 court ruling determined that Liquidia had infringed two valid patent claims held by United Therapeutics Corporation. Liquidia decided not to appeal that decision and applied to remove the PH-ILD indication from YUTREPIA's label. In exchange, the settlement preserves Liquidia's ability to commercialize YUTREPIA for pulmonary arterial hypertension.
Liquidia reported preliminary, unaudited third-quarter YUTREPIA net sales of $222.7 million and $396.1 million in cash and cash equivalents as of September 30. Management expects to fund the entire settlement through existing cash reserves and ongoing product revenue without seeking additional financing. Investors will look for further updates during the company's third-quarter earnings call in November.
Key points
- Liquidia Corporation agreed to pay $380.7 million to resolve six lawsuits with United Therapeutics Corporation.
- The agreement allows Liquidia to continue commercializing YUTREPIA for pulmonary arterial hypertension.
- Liquidia will pay $175 million within 30 business days and two $72.7 million installments in 2027, plus $60.3 million for antitrust claims.
- The company expects to fully fund the settlement using existing cash and product sales without external financing.
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How we writeDisclaimerQuestions and answers
Why did Liquidia stock surge?
Liquidia stock rose after the company reached a $380.7 million settlement with United Therapeutics, ending six lawsuits and securing market rights for YUTREPIA.
How will Liquidia pay the United Therapeutics settlement?
Liquidia plans to cover the $380.7 million settlement using cash on hand and future YUTREPIA sales, requiring no additional financing.
What is the total cost of Liquidia's legal settlement?
The settlement totals $380.7 million, including $175 million due in 30 business days, two $72.7 million payments in 2027, and $60.3 million for antitrust claims.