Raymond James maintains strong buy on Liquidia stock following court ruling

Published 02/06/2025, 19:28
Raymond James maintains strong buy on Liquidia stock following court ruling

On Monday, Raymond (NSE:RYMD) James analysts reiterated a Strong Buy rating for Liquidia Technologies stock (NASDAQ:LQDA) with a price target of $33.00. The decision follows a favorable court ruling for Liquidia, where the Middle District Court of North Carolina denied United Therapeutics (NASDAQ:UTHR)’ request for a temporary restraining order or preliminary injunction regarding a patent infringement case. United Therapeutics, currently trading near $323 with a market capitalization of $14.57 billion, maintains excellent financial health according to InvestingPro analysis.

The court’s decision removes any immediate legal barriers to the commercialization of Liquidia’s Yutrepia for treating pulmonary arterial hypertension (PAH) and pulmonary hypertension associated with interstitial lung disease (PH-ILD). The judge cited three reasons for the denial: questions over the patent’s validity, evidence supporting Yutrepia’s benefits for patients, and United Therapeutics’ inability to meet patient needs in the near future. Despite these challenges, United Therapeutics maintains strong fundamentals with an impressive 89% gross profit margin and minimal debt-to-equity ratio of 0.03, as revealed by InvestingPro data.

Liquidia announced its first shipment of Yutrepia occurred just five business days after receiving FDA approval, ahead of the expected timeline. This rapid action ensures that Yutrepia is now available to patients through specialty pharmacies.

The court ruling is seen as a setback for United Therapeutics’ legal strategy, which may weaken its ongoing patent infringement claims against Liquidia. With Liquidia now on the offensive in its legal battles, the company’s commercial team is moving quickly to launch Yutrepia for PAH and PH-ILD patients.

Raymond James analysts view the recent developments as a positive shift in legal momentum for Liquidia, reinforcing their optimistic outlook for the company’s future product launches.

In other recent news, United Therapeutics Corporation reported a strong first-quarter 2025 performance, surpassing market expectations with an earnings per share of $6.63 and revenue of $794.4 million, significantly exceeding the anticipated $728.34 million. The company has maintained double-digit revenue growth for 11 consecutive quarters, driven by the success of its treprostinil products, including Tyvaso and Remodulin. BofA Securities raised the company’s stock target to $321, acknowledging the robust quarterly performance while maintaining a Neutral rating due to perceived balanced risks and opportunities. Meanwhile, TD Cowen reaffirmed its Buy rating with a price target of $400, citing the company’s progress with Tyvaso PH-ILD and its innovative xenotransplantation platform. United Therapeutics’ management remains optimistic about the potential of these developments, with initial data for Tyvaso in IPF expected later this year. Additionally, a recent legal ruling in favor of Liquidia Technologies dismissed United Therapeutics’ claims against them, potentially impacting United Therapeutics’ market exclusivity for Tyvaso. Despite these challenges, United Therapeutics continues to focus on innovation and strategic growth, with plans to commence a clinical trial for its xenotransplantation platform by mid-2025.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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