Liquidia to pay $380.7 million in United Therapeutics settlement, continue selling Yutrepia
Key Facts
Liquidia and United Therapeutics entered into an agreement on October 13, 2026, to settle their outstanding litigation, under which Liquidia will make total net payments of $380.7 million, according to its official announcement and filing with the U.S. Securities and Exchange Commission. The payments will be made in installments during 2026 and 2027 and include settlements of parties' interests in an antitrust dispute. The agreement followed a September court ruling in favor of United Therapeutics over infringement of patent claims related to an inhaled treatment for lung diseases. The agreement requires the removal of the indication for pulmonary hypertension associated with interstitial lung disease from Yutrepia and an end to promotion for that use. In return, Liquidia retains the right to market, sell and promote the product for pulmonary arterial hypertension. The settlement thus combines financial obligations and restrictions on a specific therapeutic use, while allowing the drug's commercial activity to continue for its other use.
The federal court in Delaware ruled on September 30, 2026, that Liquidia was liable for infringing claims 1 and 14 of the patent at issue, according to a United Therapeutics filing. The court found that Liquidia had failed to establish the invalidity of the claims it was found to have infringed. However, the ruling did not uphold all the claims asserted in the lawsuit against the company. Liquidia said in its litigation update that the remaining patent claims at issue in the case were found invalid. As part of the subsequent settlement, the company said in its official announcement: "Liquidia agreed not to appeal the court's ruling." In trading on the day of the ruling, Investing reported that United Therapeutics shares were up more than 13% at the time it published its report on the session.
The case concerns patent number 11,826,327, which expires on February 3, 2042, according to a United Therapeutics filing. The disputed claims generally cover the treatment of pulmonary hypertension associated with interstitial lung disease using inhaled treprostinil. Their scope includes dry powder formulations, according to Liquidia's explanation in its settlement announcement. For this therapeutic use, the U.S. Food and Drug Administration's approval document confirms that Tyvaso DPI is indicated for pulmonary hypertension associated with interstitial lung disease. The document states that its purpose in treating this condition is to "improve exercise ability." This therapeutic scope is the subject of the settlement's restrictions on Yutrepia, while marketing the product for pulmonary arterial hypertension remains permitted under the agreement.
Yutrepia's continued presence on the market follows sales growth in the second quarter of 2026, according to Liquidia's financial results. Net product sales totaled about $170.4 million in that quarter. That represents an increase of 31% from the first quarter of the same year, according to the company's earnings announcement. Following the settlement announcement, Liquidia shares rose 44.3% in premarket trading, according to Investing. The share price reached $38.68 during that trading, in a move that followed the agreement preserving the company's right to market the drug for pulmonary arterial hypertension. The move came after gains in United Therapeutics shares accompanying the earlier court ruling, with both companies' stocks rising on different developments in the dispute.
The direct financial obligations to United Therapeutics include an initial net payment of $175 million, according to Liquidia's disclosure of the settlement terms. That amount reflects the offsetting payment to settle the antitrust lawsuit under the financial arrangements between the parties. In addition to the initial payment, Liquidia is obligated to make further payments to United Therapeutics totaling $145.4 million. The filing provides for these additional payments to be split into two equal installments during 2027. The first installment is due no later than January 31, 2027. The second is due no later than April 30, 2027, according to the schedule in the company's filing.