Liquidia Shares Rise After Legal Settlement With United Therapeutics

Liquidia (Nasdaq: LQDA) settled six lawsuits—patent, trade‑secret and antitrust—against United Therapeutics (Nasdaq: UTHR). The settlement required Liquidia to pay $380.7 million and to remove the pulmonary‑hypertension‑associated‑with‑interstitial‑lung‑disease (PH‑ILD) indication from its inhaled treprostinil, Yutrepia. The deal cleared a legal cloud that had weighed on the stock, and Liquidia shares jumped 27 % on the first day, from $26.81 to $33.94, before ending the week 25 % higher. United’s shares slipped 0.6 % on Wednesday, rose 0.3 % on Thursday, and fell 2 % on Friday, finishing the week 3 % lower at $533.12.

The dispute began when Sandoz Group and its marketing partner RareGen (now part of Liquidia) accused United of blocking a generic version of United’s injectable treprostinil, first FDA‑approved in 2002 as Remodulin. A 2023 decision by the U.S. District Court for the District of Delaware found Liquidia had infringed claims 1 and 14 of U.S. Patent No. 11,826,327. By accepting the settlement and not contesting that ruling, Liquidia avoided a prolonged appellate process and can continue selling Yutrepia for pulmonary‑arterial‑hypertension (PAH) but must stop promoting it for PH‑ILD.

Yutrepia has achieved Fast‑Track status for Raynaud’s phenomenon and finished the first six months of 2026 with $300.263 million in net product sales, a jump from the $6.517 million reported for January–June 2025. The drug’s sales are split roughly 60/40 between PAH and PH‑ILD, with PAH sales trending toward 70 %. Liquidia projects Yutrepia could reach blockbuster status—more than $1 billion in annual sales—by 2028 if PAH adoption grows. The company also continues development of L606, a liposomal treprostinil inhalation suspension, in partnership with Pharmosa Biopharm for both PAH and PH‑ILD.

Analysts are divided. Jefferies and Needham & Co. view the settlement as a win for Liquidia, raising the 12‑month target to $55 from $45. J.P. Morgan and Jefferies equity analyst Roger Song see United as the clearer victor, noting that United preserves exclusivity in PH‑ILD and may gain sales from patients switching from Yutrepia to United’s Tyvaso. The mixed views mirror the 25 % rally for Liquidia and the modest decline for United.

Liquidia will pay $175 million by October 30, then $145.4 million in two equal installments of $72.7 million due on or before January 31 and April 30 2027, plus $60.3 million to other parties. United receives the bulk of the settlement money and continues its Tyvaso sales, which generated $910.1 million through June 2026. Liquidia’s cash and cash equivalents were $396.1 million as of September 30, giving it room to fund its pipeline.