Liquidia receives $50 million funding after court denies injunction

MORRISVILLE, N.C. - Liquidia Corporation (NASDAQ:LQDA), a $1.13 billion market cap biopharmaceutical company currently trading near its InvestingPro Fair Value, has received an additional $50 million in funding from Healthcare Royalty (HCRx) following a favorable court ruling and the first commercial sale of its pulmonary hypertension treatment YUTREPIA.

The funding comes after the U.S. District Court for the Middle District of North Carolina denied United Therapeutics Corporation’s request for a preliminary injunction and temporary restraining order against Liquidia.

The $50 million represents the latest tranche of a financing agreement with HCRx, bringing the total funding received to $175 million of a potential $200 million. The remaining $25 million would become available if Liquidia achieves aggregate net sales of YUTREPIA exceeding $100 million by June 30, 2026, subject to mutual agreement.

Michael Kaseta, Liquidia’s Chief Financial Officer and Chief Operating Officer, said the proceeds will "accelerate our launch execution, advance our clinical pipeline, and support the expansion of future manufacturing operations."

YUTREPIA is an inhaled dry-powder formulation of treprostinil delivered through a palm-sized device. It is approved for the treatment of pulmonary arterial hypertension (PAH) to improve exercise ability and pulmonary hypertension associated with interstitial lung disease (PH-ILD). Analysts tracked by InvestingPro anticipate significant sales growth for Liquidia, with revenue projected to grow by 202% in the current fiscal year. Get detailed insights and 7 additional ProTips with an InvestingPro subscription.

The additional funding is subject to a fixed payment schedule through 2033, with aggregate payments to HCRx capped at 175% of the total amounts funded.

Liquidia Corporation is a biopharmaceutical company focused on developing therapies for rare cardiopulmonary diseases using its proprietary PRINT Technology.

This article is based on a press release statement from Liquidia Corporation.

In other recent news, Liquidia Technologies has seen significant developments following the full FDA approval of its YUTREPIA inhalation powder for treating pulmonary arterial hypertension (PAH) and pulmonary hypertension associated with interstitial lung disease (PH-ILD). This approval has led to BTIG analysts raising the company’s stock price target to $45, maintaining a Buy rating, while Needham analysts increased their target to $32, also with a Buy rating. The legal landscape has been favorable for Liquidia, as a U.S. District Court denied United Therapeutics’ requests for a temporary restraining order and preliminary injunction, allowing Liquidia to proceed with YUTREPIA’s commercial launch without immediate legal challenges.

Liquidia’s swift action in mobilizing its sales force and listing YUTREPIA with compendia has enabled the company to make its first commercial shipment to specialty pharmacies. Meanwhile, Raymond James has reiterated a Strong Buy rating on Liquidia stock, emphasizing the company’s potential in the PAH and PH-ILD markets despite emerging competition from Insmed. Insmed recently reported positive Phase 2b study results for its TPIP treatment, which may compete with YUTREPIA in the future.

The court’s decision and the subsequent analyst upgrades reflect growing confidence in Liquidia’s ability to capitalize on its market opportunities. Investors are closely monitoring these developments, especially as Liquidia navigates both regulatory and legal environments to establish YUTREPIA as a leading treatment option. These recent advancements underscore the company’s strategic positioning in the competitive landscape of PAH and PH-ILD therapies.

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