Liquidia Plummets 50% After Patent Loss
A US federal court ruled against Liquidia in its patent dispute with United Therapeutics, causing its shares to fall nearly 50% and boosting United Therapeutics' shares by over 12%
A US federal court has ruled against Liquidia in its patent dispute with United Therapeutics, finding that two claims of United Therapeutics’ ‘327 patent were valid and infringed by Liquidia’s Yutrepia. This decision has significant implications for Liquidia, with its shares falling nearly 50% after the court ruling.
The patent in question covers the use of inhaled treprostinil to treat pulmonary hypertension-associated interstitial lung disease, including certain dry-powder formulations. Yutrepia, Liquidia’s lead product, was approved by the US FDA in 2025 for pulmonary arterial hypertension and PH-ILD, and this ruling may impact its ability to compete in the PH-ILD market.
In contrast, United Therapeutics' shares jumped more than 12% after the decision, indicating a positive outcome for the company. The court has directed the parties to submit proposed remedies within one week, with a final judgment expected shortly.
## What happens next Liquidia plans to pursue available appellate options and has also asked the FDA to remove the PH-ILD indication from Yutrepia’s label. This move suggests that the company is exploring all possible avenues to mitigate the impact of the court ruling.
The stakes are high for Liquidia, as Yutrepia is its lead product and a significant contributor to its revenue. The company's ability to compete in the PH-ILD market will depend on the outcome of its appeal and the FDA's decision on the label indication. The market has already reacted strongly to the news, with Liquidia's shares plummeting and United Therapeutics' shares surging.
## Why it matters The patent dispute between Liquidia and United Therapeutics has significant implications for the PH-ILD market. The ruling may limit Liquidia's ability to compete in this market, potentially affecting patients who rely on Yutrepia for treatment. The outcome of the appeal and the FDA's decision will be closely watched by investors and patients alike, as it will determine the future of Yutrepia and Liquidia's position in the market.
