Liquidia stock retook its 50-day line Monday after a U.S. patent judge took its side in a patent dispute with fellow biotech company United Therapeutics.
On Friday, U.S. District Court Judge Richard Andrews denied United Therapeutics' request for a preliminary injunction. The company claimed Liquidia's drug, Yutrpeia, infringes on a United patent covering the inhaled administration of the drug treprostinil. Yutrepia is an inhaled version of treprostinil. Liquidia sells treprostinil in pills, powder and injections.
The news is a boon for Liquidia, which gained tentative Food and Drug Administration approval for Yutrepia in late 2021, pending ongoing litigation. Yutrepia treats pulmonary arterial hypertension, a form of high blood pressure in the lungs.
On today's stock market, Liquidia stock surged 12.7% to close at 14.50. United Therapeutics stock also rose a fraction to close at 276.26.
A Boon For Liquidia Stock
The news is a boon for Liquidia, which is also angling for the pulmonary hypertension and interstitial lung disease market, says Needham analyst Serge Belanger.
"We view the judge's decision as a positive for Liquidia given that an injunction would have likely blocked the launch of Yutrepia in PH-ILD, a significantly larger market opportunity than PAH," he said in a report.
Belanger has a buy rating and 28 price target on Liquidia stock.
The path to full approval is now wide-open as well. Patent exclusivity for Tyvaso in pulmonary hypertension and interstitial lung disease expired on March 31.
"The denial of the preliminary injunction leaves the path to FDA approval and launch of PAH and PH-ILD free of impediments," he said.
Notably, Liquidia stock has a strong IBD Digital Relative Strength Rating of 93, which puts its 12-month performance among the leading 7% of all stocks regardless of industry group.
Follow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.
