Liquidia Records $389.7 Million Settlement Charge

The Tip Desk · November 10, 2026 · 3 min read

YUTREPIA net product sales reached $222.7 million in the third quarter as the company booked a $389.7 million litigation settlement charge.

Liquidia Corporation (LQDA), a biopharmaceutical company focused on inhaled treprostinil, recorded a $389.7 million litigation settlement charge in the third quarter ended September 30, 2026, flipping GAAP results from profit to a net loss of $236.3 million, or $2.64 a share.

The charge followed a global settlement with United Therapeutics Corporation on October 13, 2026, that resolved all six pending lawsuits between the companies. The settlement came after a September 30, 2026, ruling by the U.S. District Court for the District of Delaware that certain claims of U.S. Patent No. 11,826,327, related to the treatment of pulmonary hypertension associated with interstitial lung disease (PH-ILD) with inhaled treprostinil, were valid and infringed.

Under the agreement, Liquidia agreed to pay net $380.7 million in installments in 2026 and 2027, inclusive of payments to other parties to resolve antitrust litigation related to Treprostinil Injection. The company said it expects to fund those payments from current cash and cash equivalents and ongoing sales of YUTREPIA. The settlement charge consisted of $330.4 million payable to United Therapeutics, less a $10.0 million receivable, $60.3 million payable to parties with interests in the antitrust litigation, and other non-cash write-offs related to the Sandoz promotion agreement.

YUTREPIA remains available to patients without disruption, and no patients are required to discontinue. Liquidia agreed not to appeal the ruling, has submitted a Prior Approval Supplement to remove the PH-ILD indication from YUTREPIA’s label, and has ceased promoting YUTREPIA for PH-ILD. The settlement includes mutual releases without admission of liability.

Net product sales were $222.7 million in the third quarter, up 31% from the second quarter of 2026, matching the sequential growth rate reported for the second quarter versus the first quarter. The company said the increase of $171.0 million versus the year-ago quarter was due to higher volume of YUTREPIA sales after U.S. shipments began in June 2025. Paid patient demand excluding voucher and patient access programs was $212.2 million. From launch through September 2026, more than 60% of referrals included a PAH diagnosis, rising to more than 70% in September.

Excluding the settlement charge, YUTREPIA sales led to a fifth consecutive quarter of increasing non-GAAP adjusted EBITDA, which was $140.5 million. Cash and cash equivalents totaled $396.1 million as of September 30, 2026, prior to settlement payments.

In October 2026, total patient shipments reached their highest monthly level since launch. The daily referral rate was more than 75% of the third-quarter daily referral rate, and conversion of monthly referrals to patient starts remained above 87%. The prescriber base reached 1,300 through October.

Service revenue, net, was $2.6 million. The Sandoz promotion agreement was terminated in October 2026, and the company said it will no longer generate service revenue. Research and development expenses were $25.3 million, including an $11.1 million increase for the L606 program versus the year-ago quarter. Selling, general and administrative expenses were $59.0 million. Cost of product sales was $14.0 million.

In September 2026, the FDA granted Fast Track designation to YUTREPIA for systemic sclerosis-associated Raynaud’s phenomenon. Liquidia initiated RE-WARM, a Phase 2 dose-finding study in that indication, with primary completion anticipated in the first quarter of 2027. The company also initiated LTI-403 in PAH patients switching from oral selexipag and advanced SPRINT and EASY-PAH. Enrollment continues in Re-Spire for L606 in PH-ILD.