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On Monday, Scotiabank (TSX:BNS) analyst Greg Harrison updated the financial outlook for Liquidia Technologies (NASDAQ:LQDA), increasing the price target to $36.00 from the previous $34.00. The firm’s Sector Outperform rating for the company remains unchanged. According to InvestingPro data, the stock has shown remarkable momentum with an 11.24% return in the past week and is currently trading near its 52-week high of $16.81. Analyst targets range from $20 to $36, suggesting significant upside potential.
The adjustment follows a favorable legal development for Liquidia, as a lawsuit against the U.S. Food and Drug Administration (FDA) by United Therapeutics was dismissed. The lawsuit had challenged the FDA’s handling of an amendment to the New Drug Application (NDA) for Yutrepia, Liquidia’s product candidate. Judge Timothy J. Kelly ruled in favor of dismissing the case, which involved both Liquidia and the FDA. InvestingPro analysis shows the company maintains a strong financial position with a current ratio of 4.43, indicating ample liquidity to support its drug development programs.
This legal clearance is significant as it may smooth the way for the upcoming Prescription Drug User Fee Act (PDUFA) decision regarding Yutrepia, scheduled for May 24. Yutrepia is being reviewed for the treatment of pulmonary arterial hypertension (PAH) and pulmonary hypertension associated with interstitial lung disease (PH-ILD).
The dismissal of the lawsuit has been perceived positively by Scotiabank, with Harrison noting that it removes a major legal uncertainty that had previously deterred some investors from Liquidia’s stock. The analyst expressed increased confidence in Yutrepia’s potential approval, which has led to an enhancement of the Probability of Success (PoS) to 95% from the earlier 90%.
The revised price target of $36 reflects the updated PoS and the anticipation of Yutrepia’s approval, which could be a pivotal moment for Liquidia. Harrison’s full report also includes a catalyst calendar, providing investors with insight into upcoming events that could impact the company’s financial performance.
In other recent news, Liquidia Technologies has achieved significant milestones concerning its lung-disease drug Yutrepia. A federal judge dismissed United Therapeutics Corp (NASDAQ:UTHR).’s cross-claims against Liquidia and the FDA, clearing a major legal hurdle for Yutrepia’s market entry. This decision allows Liquidia to proceed with the launch of Yutrepia, potentially as early as this month, once United Therapeutics’ exclusivity on a competing product expires. Additionally, the FDA has accepted Liquidia’s resubmission for Yutrepia’s New Drug Application, setting a goal date of May 24, 2025, for a final decision.
In legal developments, Liquidia has filed a patent infringement lawsuit against United Therapeutics, alleging infringement on a patent related to a dry powder formulation of treprostinil. Analyst updates from Scotiabank and H.C. Wainwright reflect optimism, with Scotiabank raising Liquidia’s stock target to $34 and H.C. Wainwright maintaining a Buy rating with a $29 target. Both firms highlight Liquidia’s preparedness for Yutrepia’s commercial launch and its legal standing in ongoing patent disputes. Liquidia’s strategic moves, including securing a $100 million financing agreement with HealthCare Royalty, further support its market entry plans for Yutrepia.
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