Intel stock spikes after report of possible US government stake
Liquidia Technologies Inc. (NASDAQ:LQDA), a biopharmaceutical company with a market capitalization of $1.81 billion, reported its second-quarter earnings for 2025, revealing a significant revenue beat and a pre-market stock surge. The company reported a revenue of $8.8 million, substantially surpassing the forecast of $3.92 million, driven by strong sales of its Eutropia product. Despite posting a larger-than-expected loss per share of $0.49 compared to the forecasted $0.42, the market reacted positively, with the stock rising 16.04% in pre-market trading to $24.60. According to InvestingPro analysis, the stock currently appears overvalued relative to its Fair Value.
Key Takeaways
- Liquidia’s Q2 revenue reached $8.8 million, exceeding expectations by 125.51%.
- EPS came in at -$0.49, missing the forecast by $0.07.
- The stock surged 16.04% in pre-market trading, reflecting investor optimism.
- Strong demand for Eutropia with over 900 unique prescriptions.
- Plans to expand manufacturing capacity by 2026.
Company Performance
Liquidia’s performance in Q2 2025 was marked by robust revenue growth, largely attributed to the successful launch and adoption of its Eutropia product for pulmonary arterial hypertension and related conditions. The company reported $6.5 million in sales from Eutropia, complemented by $2.3 million from a promotion agreement with Sandoz. InvestingPro data shows the company maintains a healthy current ratio of 2.93, indicating strong liquidity to support its operations. This performance stands out in the biopharmaceutical sector, where competition is fierce, and innovation is key. InvestingPro subscribers have access to 14 additional key insights about LQDA’s financial health and market position.
Financial Highlights
- Revenue: $8.8 million, a significant increase from the forecasted $3.92 million.
- Earnings per share: -$0.49, compared to a forecast of -$0.42.
- Cash and cash equivalents: $173 million, providing a solid financial cushion.
- Expenses aligned with expectations, with an anticipated rise in R&D spending.
Earnings vs. Forecast
Liquidia’s actual revenue of $8.8 million exceeded the forecast by 125.51%, while the EPS of -$0.49 represented a 16.67% miss compared to expectations. This mixed performance highlights the company’s revenue-generating capabilities and the challenges it faces in managing costs.
Market Reaction
The market responded favorably to Liquidia’s earnings report, with the stock price jumping 16.04% in pre-market trading to $24.60. This increase reflects investor confidence in the company’s growth prospects, particularly in light of its strong revenue performance and potential for further market penetration.
Outlook & Guidance
Looking ahead, Liquidia anticipates continued growth in its prescriber base and improvements in the payer landscape. The company plans to expand its manufacturing capacity by 2026, which could further drive revenue. Future guidance suggests a narrowing of losses, with EPS expected to improve in subsequent quarters. Analysts tracked by InvestingPro maintain a strong Buy consensus with a rating of 1.67, projecting significant revenue growth of 202% for FY2025. For detailed analysis and comprehensive insights, investors can access LQDA’s Pro Research Report, part of InvestingPro’s coverage of over 1,400 US stocks.
Executive Commentary
CEO Roger Jeff highlighted the rapid market entry and strong initial demand for Eutropia, stating, "Within one week of approval, we were live and in the market, shipping product, supporting physicians, and most importantly, delivering therapy to patients." CFO Michael Kaseta emphasized the company’s commitment to patient choice, saying, "We want to make sure patients have an opportunity to choose Eutropia."
Risks and Challenges
- Patent litigation poses a potential risk to future earnings.
- Increased R&D expenses could impact profitability.
- Market competition from established players remains a challenge.
- Dependence on a limited number of products for revenue growth.
Q&A
During the earnings call, analysts focused on the company’s prescription growth and market expansion strategies. Questions centered on the competitive landscape and potential impacts of ongoing patent litigation. Liquidia’s management reiterated its focus on expanding market access and improving patient retention.
Full transcript - Liquidia Technologies Inc (LQDA) Q2 2025:
Nadia, Conference Operator: Good morning, and welcome everyone to the Liquidia Corporation Second Quarter twenty twenty five Financial Results and Corporate Update Conference Call. My name is Nadia, and I will be your conference operator today. Currently, all participants are in listen only mode. Following the presentation, we will conduct a question and answer session. Instructions will be provided at that time for you to queue for up for questions.
I would like to remind everyone that this conference call is being recorded. I will now hand the conference call over to Jason Nadere, Chief Business Officer. Please go ahead, sir.
Jason Nadere, Chief Business Officer, Liquidia Corporation: Thank you, operator, and good morning, everyone. It’s my pleasure to welcome you to the Liquidia Corporation second quarter twenty twenty five financial results and corporate update call. Joining the call today are chief executive officer, doctor Roger Jeff chief operating officer and CFO, Michael Kaseta chief medical officer, doctor Rajeev Sager chief commercial officer, Scott Mumaw and general counsel, Rusty Schundler. Before we begin, please note that today’s conference call will contain forward looking statements, including those regarding future results, unaudited and forward looking financial information, and the company’s future performance and or achievements. These statements are subject to known and unknown risks and uncertainties, which may cause actual results or performance to differ materially.
For more information, please refer to the documents filed with the SEC available on our website. With that, I’d like to turn the call over to Roger for our prepared remarks. Roger?
Roger Jeff, Chief Executive Officer, Liquidia Corporation: Thanks, Jason, and good morning, everyone. We are very pleased and excited to share our first commercial data for Eutropia with everyone this morning. It’s been a spectacular beginning. Just over eleven weeks ago, we were proud to introduce Eutropia for the treatment of patients with pulmonary arterial hypertension, PAH, and pulmonary hypertension associated with interstitial lung disease, PHILD. Within one week of approval, we were live and in the market, shipping product, supporting physicians, and most importantly, delivering therapy to patients.
This wasn’t simply a product introduction. It was a launch executed with purpose and precision, and one that has been extremely well received by the physician and patient communities that we now serve. Today, we will share data and, as promised, provide additional granularity around key metrics to improve transparency regarding this early launch period. Since May, specialty pharmacies have reported over 900 unique patient prescriptions leading more to more than 550 patient starts on Utruria. That pace of adoption is unprecedented in the treprostinil space and underscores the power of our print enabled prostacyclin product.
We had no doubt about the key attributes of Yotrevio’s profile to enhance deep lung delivery with an easy to use, low effort device enabling a wide range of doses. I can honestly say, in all my years of launching drugs in this space, this has truly outpaced all expectations, even mine, which were very, very high. Not only does this signal the value of what we have developed, but also that existing products fall short in addressing the needs of many patients. In conversations with prescribers and in communications from patients, the ease of use, tolerability, especially with regard to cough, and ability to escalate those to clinical effect represents a market and meaningful improvement in the quality of care. Eutrachio’s differentiated product profile paired with the commercial success in driving brand awareness has led to an early and enthusiastic uptake as you have seen in the prescription and start numbers.
In fact, it’s been an unabated sprint since day one of launch. We’ve seen broad demand from cardiologists and pulmonologists with prescriptions occurring at both specialty centers and community practices, And they are treating a broad group of patients across both diseases who are prostacyclin naive, transitioning from Tyvaso and Tyvaso DPI, and even moving from oral prostacyclins. Utopia is truly off to a strong start and quickly positioning itself as potentially the best in class and first in choice option for patients in need of a prostacyclin therapy. Anticipating the strong interest, our mark market access team prepared premium white glove services and reimbursement support to allow patients to gain early access to Eutrevia. Health care providers have responded positively to the program’s co pay assistance and twenty eight day free vouchers, a first for an inhaled prostacyclin therapy.
As a way of providing some insight, prescriptions received during the first six weeks of launch had a 75% script to start conversion rate. It’s especially noteworthy that this early momentum has been achieved in spite of the customary period of new new to market blocks and non formulary positioning. We see the potential for accelerating growth and possibly higher conversion rates as we continue to expand market access during the third and fourth quarters. While the commercial team has been driving Utopia’s robust update, our clinical team has been analyzing maturing data from the ongoing open label ASCENT study, which was fully enrolled with fifty four PH ILD patients in March. This analysis includes the safety and observational exploratory efficacy data up to week sixteen.
The ASCENT study was intentionally designed to include a real world PH ILD population treated with utrapia. In particular, we treated patients ranging from mild pulmonary hypertension to those with more advanced hemodynamic and forced vital capacity impairments and even patients listed for lung transplantation. The observations at week eight and week sixteen are indeed impressive. The tolerability remains very favorable as evidenced by the fact that only eighteen point five percent of patients discontinued the study at week sixteen with no discontinuations for serious or drug related adverse events, including cough. For context, this favorable tolerability is juxtaposed by prospective data of Tyvaso DPI from the National Jewish Health Center, a preeminent pulmonary care center, where sixty nine percent of treatment naive patients discontinued Tyvaso DPI in a median time of only forty days, with the primary reasons for discontinuation being cough and clinical worsening.
Taking a slightly deeper look at the favorable tolerability that we are observing in the ASCENT study of those patients that reported a treatment related cough, the vast majority, or twenty four of twenty six patients, reported mild cough, and only two patients reported a moderate cough. However, it should also be noted that in the longitudinal analysis, the mean daytime simplified cough scores remained essentially unchanged from baseline through week sixteen, suggesting the cough overall tended to be transient in nature and not worsened with the addition addition of retrevia even with escalating doses, and therefore likely similar to these patients’ historical cough that is associated with their underlying interstitial lung disease. This tolerability is helping patients escalate to higher doses. The median dose at week eight was a hundred and thirty two point five micrograms or approximately 15 breath equivalents to Tyvaso and a hundred and fifty nine micrograms at week sixteen, approximately 18 breath equivalents to Tyvaso, with the highest exposure of three hundred and eighteen micrograms comparable to approximately 36 four times per day of Tyvaso nebulizer. The net result of greater tolerability and higher achieved doses also correlates with a robust efficacy result with the observed median improvements in six minute walk distance of 21.5 meters at week eight that increased further to 31.5 meters at week sixteen.
Overall, this dataset continues to highlight the robust tolerability, titratability, efficacy, and durability of utrephia in a real world population of PH ILD patients. We look forward to sharing the detailed data with the medical community targeting the PH Professional Network Symposium Conference in mid September and a major respiratory conference in October. Now I will pass the call to Mike, who continues to guide the company with a firm hand on the financials and with an eye towards supporting continued growth.
Michael Kaseta, Chief Financial Officer, Liquidia Corporation: Thank you, Roger, and good morning, everyone. In order to save time for more of your questions, I’d just like to hit the headlines on the financial statements filed this morning with the SEC and in our press release. We closed the quarter with over $173,000,000 in cash and cash equivalents on the balance sheet, a solid position that will help us bridge to profitability over the coming quarters as we continue the commercial rollout of Eutrebia, invest in our pipeline and expand operational capabilities. On the revenue side, we generated $8,800,000 in the second quarter of which $6,500,000 came from Eutrebia product sales, which began shipping in June. The additional $2,300,000 in service revenue related to our ongoing promotion agreement of treprostinil injection with Sandoz.
Expenses for the quarter were in line with our expectations as we fully transitioned into commercialization mode. Looking forward to the end of the year, we anticipate increases in quarterly R and D expenses as we continue ongoing label studies and prepare to initiate the pivotal study of L-six zero six. SG and A expenses after excluding non cash and variable costs associated with Eutremia sales should remain flat over the next few quarters. Our planned commercial spending supports the launch, but that said, any increase would be targeted to further acceleration in Eutremia adoption. Lastly, with Eutremia approved, we are expanding our footprint in North Carolina and have signed a lease for additional manufacturing space to support continuing growth, potentially tripling our production capacity.
Targeted for occupancy in 2026, this state of the art facility will include production space to house additional print manufacturing lines and analytical labs to support additional Utopia manufacturing. We are continuing to execute on our plan and our cash position gives us the flexibility to keep moving forward with confidence. With that, I’ll hand it back to Roger.
Roger Jeff, Chief Executive Officer, Liquidia Corporation: Thanks, Mike. In just over two months, Utopia has delivered on every front, with brand awareness growing, prescriptions rapidly escalating, payer access expanding, and clinical data maturing. With a clear and differentiated product profile, we are building a foundation not just for a successful launch, but for long term leadership in the prostacyclin market. I would like to thank our entire team who, like our product, our best in class. One final note before we begin the Q and A session.
We plan to host an R and D day in the fall where we will provide an update on our open label L-six zero six study, which will include data for patients who have been on L-six zero six for up to a year. We are as excited about L six zero six as we are Eutrebia, but today is Eutrebia’s day in the spotlight. Plus, L six zero six deserves its own stage to properly highlight its own unique product profile. With that, operator, first question, please.
Nadia, Conference Operator: Thank you, dear participants. And now we’re going to take our first question. And it comes from the line of Julien Harrison from BTIG. Your line is open. Please ask your question.
Jason Nadere, Chief Business Officer, Liquidia Corporation: Hi, good morning. Congrats on the strong launch and thank you for taking my questions. These are very impressive numbers. Three questions from us. First, on a weekly basis, has the Utopia growth generally looked sequential or was there some bolus effect early on?
Second, PAH versus PHLV mix along with percentage of patients diagnosed with underlying IPF, are you able to disclose those numbers now? And finally on ASCEND, it was great to see the very strong six minute walk data out to or through sixteen weeks. I’m curious if you could talk more about your decisional lead with the median six minute walk changes instead of the average. Why are median changes maybe more appropriate here? And how does that compare to the competitive landscape?
Roger Jeff, Chief Executive Officer, Liquidia Corporation: Great, Julian. Thanks for the questions. So in terms of, uptake, what we said in in the script is that we’ve had accelerating uptake over time. So as we’ve been in the market, you know, again, still just for eleven weeks, each week seems to be a little bit better than the one before, and we think that trend hopefully will continue particularly as we continue to evolve the the payer landscape, and remove some of the things like new to market blocks that existed when you first launched drugs. Awareness is driving a lot of that.
I think we had a focus on the key centers, and certainly the adoption there has been rapid. I think the messages have been resonating very quickly, and that’s the the result of that as you see that in the referrals and and and the script rate. We’re not gonna give the PAH versus PAH ILD split today. We wanna make sure if we were to do that, that we had absolute clarity on what that is. And just because of the way some of that data’s been collected, we can’t really confirm exactly and precisely what the the therapeutic split would be.
And then for the ASCENT trial, maybe I’ll hand that over to to Rajeev to talk about why we think median data is most appropriate and more reflective, but the simple answer is, and I’ll give it to Rajeev, is that it minimizes the impact of outliers. So, particularly in an open label study, you really want to look at medians to give a more accurate and reflective results from a population that we’ve studied. Rajiv, any other comment on that?
Jason Nadere, Chief Business Officer, Liquidia Corporation: Yeah Roger, Julian nice to hear from you. No, I completely agree. I think it’s less susceptible to being skewed to outliers or extreme values. It’s important to provide such tendency in these situations especially with small samples. And I think it also is more akin to how larger data sets are usually conveyed.
I will state that we will be showing more granular detail at the upcoming conference at PHPN and in the upcoming conference in October, but I think we could say with the high degree of certainty that the mean and median values near each other. I think that’s really important to note as well. Very helpful all around. Congrats again.
Roger Jeff, Chief Executive Officer, Liquidia Corporation: Thank you, Julian. Always good to hear from you. Operator, next question, please.
Nadia, Conference Operator: Yes, of course. Now we’re going to take our next question. And the question comes from line of Ryan Deschnev from Raymond James. Your line is open. Please ask the question.
Ryan Deschnev, Analyst, Raymond James: Good morning. Congratulations on the strong start to your Eutropia launch and the Ascent results. What proportion of paid drug is associated with the reported patient starts? And is this in line with your expectations? And what proportion of patient starts are switches from Tyvaso DPI or other inhaled or oral treprostinil products?
Thanks.
Roger Jeff, Chief Executive Officer, Liquidia Corporation: Yeah. So, Sandeep, Mike, if you wouldn’t mind answering the paid drugs question, and Scott, our chief commercial officer, you can talk about proportions as you can.
Michael Kaseta, Chief Financial Officer, Liquidia Corporation: Thanks Roger and Ryan. Great to talk to you. In terms of proportion of paid versus new start, I’m sorry, as free drug as we as everyone knows, we have a couple of programs. We have a voucher program that provides the first twenty eight days free drug for new patients. Then we also have a bridge program that provides an additional twenty eight day supply at any time during one time during a patient’s journey.
So, what I would say is specifically, the amount of paid versus free drug, especially through the usage of the voucher program. It’s in line with our expectations of what we’ve seen in other launches, less than 50% have been on free voucher drugs. But again, we wanted to make sure we gave patients an opportunity to try our drug immediately to see if it’s something that works for them and allows us to start that insurance adjudication process as we go. But we’re very happy with the services that we provide, the market access services specifically that Scott and his team have provided. And I think have been very helpful for us as we’ve gotten you off the ground.
Roger Jeff, Chief Executive Officer, Liquidia Corporation: Great. And Scott, if you’ll handle the second question.
Scott Mumaw, Chief Commercial Officer, Liquidia Corporation: Sure. Good morning. So in terms of switches versus new to prostacyclin patients, you know, I think we’ve said in the past that our primary focus is the new to prostacyclin patients. And so commensurate with that, we’ve certainly the preponderance of the patients that are coming in. We have seen switches.
I think it’s no secret that, you know, there are many patients out there who’ve been on a DPI or nebulized inhaled and are either on that or are dissatisfied or came off And so I think as Roger said in the prepared remarks, we have been surprised, let’s say, with the volume of those. We’re not going to get into the exact numbers. And we are also seeing, as I think Roger mentioned, some oral prostacyclin switches as well. So, we’ll keep an eye on that, you know, as time goes along and get a feel for what the run rate is for that.
But that’s kind of how it’s playing out currently.
Roger Jeff, Chief Executive Officer, Liquidia Corporation: Thanks, Scott. Think the other thing would add to that is, you know, where we said we even I was surprised by the upside here. I think it was because of these switches. You know, what we found is that there is a large number of patients with intolerant cough who remain on Tyvaso DPI that are parked at low dose, so aren’t really getting the benefit of the prostacyclin that they deserve, and those patients have readily looked forward to receiving neutropya. So that’s been where the incremental upside has been in this near term.
And I think that will continue to grow, particularly as the experience in the new patient arena sort of shows shows prescribers and patients that this drug is very, very effective, and it’s the therapeutic prodigy that we hoped it would be. Next question, please.
Nadia, Conference Operator: Yes. Of course. Just give us a moment. And the question comes from the line of Jason Gerberry from Bank of America. Your line is open.
Please ask your question.
Jason Gerberry, Analyst, Bank of America: Hey, good morning guys and congrats on the launch as well. My question, just thinking about second half in these patients that have started on Eutrebia, how should we think about the gross to net? Presumably, they’ve already gone through their twenty eight day voucher, so I’m just curious if those patients are going to flow through it full whack or if there’s a gross to net assumption that we should assume for those patients plus those that maybe convert from the prescription referral to a start. And that 75% conversion rate, the other 25% that haven’t converted, is that just a function of time, or is there anything structural or gating for those patients? Just trying to get a sense of what that process is like and the typical time from starting the prior authorization process to ensuring coverage.
Thanks.
Roger Jeff, Chief Executive Officer, Liquidia Corporation: Great. Thank you, Jason. Great questions. Mike, if you wouldn’t mind answering those questions.
Jason Nadere, Chief Business Officer, Liquidia Corporation: Mike, you might be on mute.
Michael Kaseta, Chief Financial Officer, Liquidia Corporation: Oh, sorry. As it relates to gross to net, it’s not something that we’ve talked about in terms of projecting what our gross to to be. I mean, think what we’ve said all along is from a payer point of view, we wanna make sure patients have an opportunity to choose utremia. As Roger had said earlier, they’ve been new to market blocks, especially in areas where our competitors contracted specifically in the commercial space. We now have signed contracts with all of the major commercial payers.
We expect those new to market blocks to be removed shortly. So, we would expect, like I said, more prescriptions as we move through the year to be subject to rebates. But again, we’re very confident in our ability for Utopia to win in this space. I’m very confident for us to be at parity access. And our stated goal from the very beginning was that we would we want to make sure patients have a choice.
And I think Scott and his team have done a great job of working towards that and we look forward to further development there here in the second half of the year. The second question around the convert rate, what I would say is, again, the patient support services that we put in place, which includes reimbursement specialists to navigate this landscape. We expect when you look at industry standards, I think that’s a very, very good percentage. Again, as Roger said, were some headwinds early on as it relates to these new to market blocks as those release. We think that that could be an accelerant as we get through the back end of the year here and as we move forward to, again, to make sure patients have the ability to choose and we feel very confident in our ability to deliver on that.
Jason Gerberry, Analyst, Bank of America: And Mike, if I could just squeeze a follow-up in. Just any commentary regarding Symphony data on a go forward basis? Should we look at it? Have you guys interrogated that? And how we should interpret that on a go forward basis?
Michael Kaseta, Chief Financial Officer, Liquidia Corporation: Yeah, so what I would say is, as it’s pretty standard in the industry, this information is usually not available. We obviously have seen the data like you have. I would not expect to see future data to come out, we look forward to sharing our results as we go through each quarterly earnings call.
Cory Juvenwell, Analyst, LifeSci Capital: Got it. Thanks.
Nadia, Conference Operator: Now, we’re going to take our next question. And the question comes from the line of Cory Juvenwell from LifeSci Capital. Your line is open. Please ask your question.
Cory Juvenwell, Analyst, LifeSci Capital: Good morning and congrats on all the progress. It seems like traction has been really great so far. As we think about launch plans throughout the rest of the year, what kind of near term levers are there to pull to accelerate growth? And again, given the traction you’ve seen so far, the plan is the plan to kind of largely stay on course versus pull some of these levers. And you also mentioned that you’ve signed contracts with the the three major commercial players.
When do when do those contracts, you know, kick in and and and you start to get reimbursement through that?
Roger Jeff, Chief Executive Officer, Liquidia Corporation: Yeah. Thanks for the question, Corey. So what what we I’ll take the second question first, and then, Scott, if you’ll comment on the the launch plans and and levers that we could pull going forward. But, I guess we’re gonna stick to the script that, like, in the coming quarters, we we think the the the, payer landscape will improve. And then so that that’s that’s going to be in place to happen and be an accelerant as we’ve said.
Scott, maybe you can talk about the the levers that could be pulled going forward in terms of launch.
Scott Mumaw, Chief Commercial Officer, Liquidia Corporation: Yeah. Sure. So first thing I I point out is that, I think we have immense opportunity both from a breadth and for a for a depth standpoint to capitalize on. So, you know, to take, for example, the amount of breadth, I think we said three fifty prescribers have prescribed thus far, but we’ve also said in the past that we have 6,500 targets across the country. So there’s well over 6,000 out there who have not had the opportunity to use utremia.
And from a breadth standpoint, we’re just getting started. I mean, we’ve been pleased to have physicians with one, two, three, four, five plus patients, but many more of them can have that depth and will have that depth. From an activity sort of leverage standpoint, I think, you know, one is just, you know, fuel the fire. We’re going to continue to work with the centers beyond utremia. We have had community physicians for sure that are prescribed, but we will now start to kind of work our way back out into the community to get PAH patients, but also to start to get PH ILD patients.
And then strictly from a tactical perspective, I mean, we’ll be at all the major conferences. We’ll have, you know, we’ll be loud from an electronic standpoint. We still have a full suite of launch marketing that’s going on right now and will certainly continue to go on for the rest of the year.
Roger Jeff, Chief Executive Officer, Liquidia Corporation: And Scott, maybe I’ll add in terms of like, I think all of those activities are clearly gonna be beneficial to to the brand. I think in terms of the levers, I can think of five just off the top of my head. It’s like, as Scott said, continue to increase breadth and depth of prescribers, especially as we go out into the community centers more. Because, you know, I think in this initial phase, we were somewhat focused on the on the major centers. As we’ve said, we’ll get acceleration from payer engagement and coverage.
The third would be that now that there’s traction and and switch opportunity, maybe try to leverage that more broadly and, talk about that experience more widely with prescribers so that they too can can benefit from the transition with their patients. I think the fourth level lever would be to focus on Eutreptia’s dosing flexibility to drive durability. I think it’s just as important as starting patients is keeping patients on therapy, that’s obviously gonna be a key focus for our commercial enterprise going forward. And then I think we should also now begin to capture this initial data from oral transitions, particularly as they come off of atrobi is what we’ve seen early, and begin to focus potentially on an initiative to support that in terms of how to inform doctors how to do that. You know, a lot lots of levers that we can pull all will drive future business.
So I think this is, you know, this is a very levered business in terms of what we can accomplish going forward. Operator, next question, please.
Nadia, Conference Operator: Yes. Of course. And now we’re going to take our next question. It comes from the line of Serge Belanger from Needham. Your line is open.
Please ask your question.
Serge Belanger, Analyst, Needham: Hi. Good morning, and congrats on on a great start. Had some technical difficulties this morning, so apologies if you’ve covered this already. First of all, on the 6,500,000.0, can you give us the split between channel inventory and patient demand? Secondly, regarding payer coverage, can you tell us where you’re currently at and where you expect to be by the next quarter?
And is the coverage similar to Tyvaso?
Cory Juvenwell, Analyst, LifeSci Capital: I have another follow-up, but I’ll start there.
Roger Jeff, Chief Executive Officer, Liquidia Corporation: All right. Thank you, Serge. Mike, can you answer those questions, please?
Michael Kaseta, Chief Financial Officer, Liquidia Corporation: Yes, Serge, thanks for your question. Specifically on the breakdown on revenue, I’d say, especially for first quarter of launch, the vast, vast majority of that revenue was loading the channel. As you can imagine, we we previously talked about, we put product into the channel the June. We dosed our first patient shortly thereafter. But just from a pure timing point of view, there would be a lot of that initial revenue would be loading the channel.
With that being said, obviously with the accelerating patient numbers that we’ve seen, we start seeing stacking of patients as we move into second scripts. The vast majority of that has already been absorbed as we move into Q3. As we related to payer coverage, again, like we’ve always said, we want to make sure that patients have choice. In order for patients to have choice, we need to make sure they have access to utrebia. As I said earlier, we signed contracts with three major commercial payers.
And as those NDC blocks are removed, we feel very confident, as we said, the product profile of Utopia to win and to be the prostacyclin of first choice, as Roger has stated. Being in a parity situation with United Therapeutics, where we are not disadvantaged and as those kick in, we feel very confident that will be the place that we land and feel very confident in our ability to grow.
Serge Belanger, Analyst, Needham: Thanks. And maybe one for Rusty. Just an update on three twenty seven patent litigation. I think there was a hearing a few weeks ago. I guess when you expect a potential decision and what the potential outcomes could be.
Thanks.
Rusty Schundler, General Counsel, Liquidia Corporation: Yeah, thanks for the question, Serge. So you know, trial was held back at the June. At this point, all post trial briefing is complete. The judge set a relatively accelerated post trial briefing schedule, so post trial briefing is now complete. As far as when we get a decision, it’s always hard to predict how quickly courts are going roll on things.
I think in the first Hatch Waxman trial in front of Judge Andrews, it was about two and a half months between the completion of post trial briefing and his decision. Obviously here, he said an accelerated timeline for the post trial briefing that could indicate that his decision will similarly be a little bit faster than last time, but again, hard to predict with any degree of precision. And then finally as to the potential outcomes, you know, it’s the same outcomes we’ve been talking about all along. Know, again, as with prior litigations, we won’t, you know, probabilitize what the outcome’s gonna be or try to, you know, get in front of the judge and guess how he’s gonna rule. But it’s sort of the full range of, you know, at least potential outcomes, you know, consistent with any hedge funds from litigation.
Nadia, Conference Operator: Thank you. And now we’re going to take our next question. And the question comes from line of Thiago Fowl from Wells Fargo. Your line is open. Please ask your question.
Cory Juvenwell, Analyst, LifeSci Capital: Thank you. Let me just add my congratulations as well. A A quick quick one for me. Just thinking about United’s Tetan studies read through, kind of what are some of the implications potentially going forward, some debate on orphan drug exclusivity, Any implications for Eutrepto or for the development test for six zero six? Basically, how you guys are thinking about that if that trial reads out positively.
Thanks.
Roger Jeff, Chief Executive Officer, Liquidia Corporation: Thanks, Tiago. I’ll take that. So, you know, I think they’ve said they’re expecting that result in September, so there’s really no sense in me trying to predict what that trial result will or won’t be. I think if they are successful, they will have some orphan protection for that for a period of time. So I think for us, it would be a matter of developing l six zero six for that indication, so that once that, orphan exclusivity expired, that, we could benefit from that market too if they are to be successful.
But we’ll see we’ll soon see where where that lands.
Nadia, Conference Operator: Thank you. Dear participants, as a last reminder, if you would like to ask a question, please press Dear participants, there are no further questions for today. I would now like to hand the conference over to Roger Jeff for any closing remarks.
Roger Jeff, Chief Executive Officer, Liquidia Corporation: Thank you, everyone, for joining today’s call. We appreciate your enthusiasm for this initial phase of launch. We remain laser focused on the execution in the back half of the year and look forward to driving continued uptake, expanding payer access, and laying in the groundwork for our broader pipeline. And we look forward to speaking with you very, very very soon, especially in the fall when we have our r and d day for L 606. Thank you again.
Nadia, Conference Operator: This concludes today’s conference call. Thank you for participating. You may now all disconnect. Have a nice day.
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