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On Monday, BTIG analysts increased the price target for Liquidia Technologies stock (NASDAQ:LQDA) to $45 from $37, while maintaining a Buy rating. According to InvestingPro data, LQDA’s stock has surged nearly 33% over the past six months, with analyst targets now ranging from $13 to $41. The adjustment follows the full FDA approval of YUTREPIA, now available in specialty pharmacies, and the denial of United Therapeutics’ (NASDAQ:UTHR) temporary restraining order and preliminary injunction requests last week.
The analysts highlighted that no ongoing lawsuits pose immediate injunctive risks to YUTREPIA. The North Carolina District Judge’s decision considered the merits of the underlying ’782 lawsuit, which BTIG believes bodes well for Liquidia’s chances of receiving a favorable final judgment in the case. Additionally, a similar lawsuit in Delaware saw a preliminary injunction request denied in May 2024, with specific commentary on the merits of United Therapeutics’ claims. InvestingPro analysis shows the company maintains strong liquidity with a current ratio of 2.93, though its overall financial health score remains in the WEAK category.
Currently, United Therapeutics is the defendant in a Liquidia-initiated lawsuit, which alleges infringement of Liquidia’s ’494 patent. This patent protects dosing between 100mcg and 300mcg per session and YUTREPIA’s differentiated titration window.
The increase in the price target is attributed to the denial of the ’782 temporary restraining order and preliminary injunction and the improved probabilities of success for YUTREPIA in treating pulmonary arterial hypertension (PAH) and pulmonary hypertension associated with interstitial lung disease (PH-ILD). The analysts have increased these probabilities to 99% from 95% and have lowered the discount rate to 17.5% from 20.0%.
In other recent news, Liquidia Technologies has commenced its first commercial shipment of YUTREPIA, an FDA-approved inhalation powder for treating pulmonary arterial hypertension and interstitial lung disease. This significant development follows a favorable legal ruling, where the U.S. District Court denied United Therapeutics’ attempt to halt the launch due to patent infringement claims. Analysts at Needham have responded by raising Liquidia’s stock price target to $32, maintaining a Buy rating, citing the reduced legal risks and YUTREPIA’s potential market impact. BTIG analysts also reiterated a Buy rating with a $37 price target, noting the absence of immediate legal threats to YUTREPIA’s market entry. Raymond (NSE:RYMD) James increased their price target to $33, reinforcing their Strong Buy rating, and expressed confidence in Liquidia’s strategic focus on product differentiation. They highlighted the company’s competitive pricing strategy and anticipated sales growth trajectory, predicting profitability by 2026. Liquidia’s swift action in listing and shipping YUTREPIA to specialty pharmacies underscores its proactive market strategy. These developments reflect a positive outlook for Liquidia as it navigates regulatory and market challenges.
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