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On Monday, Raymond (NSE:RYMD) James analyst Ryan Deschner upheld a Strong Buy rating and a price target of $29.00 on Liquidia Technologies (NASDAQ:LQDA), which currently trades at $16.16 with a market capitalization of $1.38 billion. According to InvestingPro data, analysts maintain a strong bullish consensus with price targets ranging from $20 to $36. The focus of Deschner’s commentary was on the ongoing patent litigation surrounding Liquidia’s product Yutrepia, which is pending FDA approval for treatment of PAH and PH-ILD with a PDUFA date set for May 24, 2024.
Deschner noted that the lawsuit against Liquidia does not seek to prevent FDA approval of Yutrepia but aims to secure a temporary restraining order (TRO) and a preliminary injunction to stop the company from commercializing the drug post-approval. He observed that the patent in question, known as the ’782 patent and issued in June 2022, appears to be a narrower version of the previously contested ’793 patent. The ’793 patent was deemed unpatentable due to obviousness and lack of novelty by the Patent Trial and Appeal Board (PTAB), a decision upheld by the Federal Circuit and not taken up by the Supreme Court.
Given this background, Deschner suggests that the ’782 patent, sharing much of the same text and figures as the ’793 patent but with fewer claims, is unlikely to pose a significant threat to the commercialization of Yutrepia. He also pointed out that neither a TRO nor a preliminary injunction was granted in another ongoing case involving the ’327 patent. The market appears to share this optimism, with the stock showing impressive momentum, having gained over 43% in the past six months and currently trading near its 52-week high of $16.81.
The next step in the legal process is a judge’s decision on whether to grant a TRO, which could potentially impact the near-term commercialization of Yutrepia in PAH/PH-ILD. However, Deschner considers such an outcome unlikely, referencing the precedent set by the ’793 patent’s unpatentability.
In addition, Deschner mentioned that Liquidia had filed a separate patent infringement lawsuit in the North Carolina Middle District Court in April, seeking potential damages from United Therapeutics (NASDAQ:UTHR) for patent ’494. This parallel legal action by Liquidia reflects the ongoing complexity of patent litigation in the pharmaceutical industry. For investors interested in deeper analysis of Liquidia’s patent portfolio and financial health, InvestingPro offers comprehensive research reports covering patent analysis, financial metrics, and risk assessment tools. The platform provides 11 additional exclusive ProTips and detailed analysis of the company’s competitive position in the pharmaceutical sector.
In other recent news, Liquidia Technologies reported a net loss of $38.4 million for Q1 2025, an increase from the $30.1 million loss in the same period last year. Despite this, the company saw a slight revenue increase to $3.1 million, driven by developments in its product pipeline. However, earnings per share (EPS) of -$0.45 fell short of the forecasted -$0.40, marking a 12.5% miss, and revenue also came in below expectations. Liquidia is preparing for the potential launch of Eutrebia, with a PDUFA date set for May 24, 2025, which they expect will bolster future revenues. The company is also focusing on a global study for its liposomal sustained-release treprostinil, L606, anticipated to begin by the end of the year. Analysts from BTIG and Jefferies have shown interest in Liquidia’s strategic initiatives and product differentiation, especially in the competitive pulmonary hypertension market. Liquidia remains confident in its preparations for Eutrebia’s launch, emphasizing robust prescriber and patient support programs. Despite ongoing challenges, the company projects gradual improvement in EPS and significant revenue growth over the next two years.
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