WASHINGTON (dpa-AFX) - Liquidia Corp. (LQDA), a biopharmaceutical company, announced that it has entered into a global settlement agreement with United Therapeutics Corp. (UTHR) resolving all six pending litigation matters between the companies.
The litigation primarily centred on patent disputes involving Liquidia's YUTREPIA and United Therapeutics' treprostinil-based therapies, as well as antitrust claims related to Treprostinil Injection.
The settlement follows the September 30, 2026, ruling by the U.S. District Court for the District of Delaware that two United Therapeutics patent claims were valid and that Liquidia infringed them.
According to the settlement terms, Liquidia will pay a net $380.7 million in multiple instalments through 2027 under the related agreements. The company will continue commercialising YUTREPIA for pulmonary arterial hypertension (PAH), ensuring uninterrupted patient access to the therapy.
YUTREPIA is an inhaled dry-powder formulation of treprostinil used to treat pulmonary arterial hypertension (PAH) and pulmonary hypertension associated with interstitial lung disease.
With the two companies now announcing a global settlement that resolves all pending litigation, Liquidia has agreed not to appeal the court's ruling. The company has also submitted a supplemental application to remove the pulmonary hypertension associated with interstitial lung disease indication from YUTREPIA's label and will no longer promote the drug for this indication.
Under the financial terms, Liquidia will make a net payment of $175 million to United Therapeutics (UTHR) within 30 business days. The amount reflects UTHR's payments to Liquidia to settle antitrust litigation related to Treprostinil Injection.
Liquidia will also pay an additional $145.4 million in two equal instalments of $72.7 million, due by Jan. 31, 2027, and April 30, 2027.
In connection with the settlement, Liquidia has entered into agreements with parties holding interests in the antitrust litigation related to Treprostinil Injection.
Under those agreements, the company will pay an aggregate of $60.3 million this month to fully settle those parties' claims. Liquidia also terminated its promotional agreement associated with Treprostinil Injection and will no longer provide commercial support for the product.
The company expects to fund the outlined payments from ongoing YUTREPIA sales and cash on hand.
Preliminary and unaudited results from the third quarter of 2026 included YUTREPIA net product sales of $222.7 million, contributing to total cash and cash equivalents of $396.1 million as of September 30, 2026.
'We expect to rebuild our cash position and fund our planned clinical studies without requiring additional financing,' said Michael Kaseta, Chief Operating Officer and Chief Financial Officer.
LQDA has traded between $21.94 and $93.61 over the last year. The stock closed Tuesday's trade at $26.81, down 3.11%.
In overnight trading, LQDA is up 46.10% at $39.17.
Note: An earlier version omitted YUTREPIA's FDA-approved indication for pulmonary hypertension associated with interstitial lung disease (PH-ILD) and a settlement term under which Liquidia agreed to seek removal of this indication from the product label and cease promoting YUTREPIA for PH-ILD. The article has been modified to include this.
For more such biotech stock news, visit www.rttnews.com.
Copyright(c) 2026 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2026 AFX News
