Liquidia Corp: settles litigation with United Therapeutics, to pay $320,400,000

What happened

• The filing says that on Oct 13, 2026 Liquidia Technologies, Inc., a wholly-owned subsidiary of Liquidia Corporation, entered into a settlement agreement with United Therapeutics Corporation to resolve all ongoing litigation between the parties, including patent, trade secret and breach of contract matters. The filing says the company will continue to market, sell and promote YUTREPIA (treprostinil) inhalation powder for pulmonary arterial hypertension (PAH) but will file with the U.S. Food and Drug Administration to remove pulmonary hypertension associated with interstitial lung disease (PH-ILD) as an indicated treatment and will immediately and permanently cease marketing YUTREPIA for PH-ILD.

Key details

• The filing says the company will (a) make a net payment to United Therapeutics of $175,000,000 due within 30 business days of the effective date after taking into account payment by UTC to the company to settle related litigation with Liquidia PAH, and (b) make additional payments to UTC totaling $145,400,000 to be paid in two equal installments on or before Jan 31, 2027 and Apr 30, 2027.
• The filing says the Releases in the Settlement Agreement become effective only upon satisfaction of conditions including the company’s payment of the UTC payments, filing of dismissals with prejudice of the litigations, and the company’s receipt of FDA approval to remove the PH-ILD indication.
• The filing says the company entered into related settlement and termination agreements with Sandoz (Sandoz payment of $21,750,000 into escrow), Henderson (payment of $19,050,000) and PBM (payment of $19,450,000); the filing says PBM is a related party and that the PBM Agreement was reviewed and approved by the disinterested members of the board.
• The filing says the company and HealthCare Royalty Partners IV, L.P. entered into a Seventh Amendment to the revenue interest financing agreement under which HCR consented to a letter of credit and the company agreed to increase the minimum cash covenant from $15,000,000 to $45,000,000. The filing also says that as of Sep 30, 2026 the company had cash and cash equivalents of $396,100,000 and preliminary Q3 2026 YUTREPIA net product sales of $222,700,000.

Why it may matter

• The filing reports Item 1.01 (entry into a material definitive agreement) covering the Settlement Agreement resolving the litigations with United Therapeutics and related settlement arrangements with Sandoz, Henderson and PBM, Item 7.01 disclosure of cash and preliminary product sales, and Item 8.01 filing of a press release about the agreements. The filing does not show why the insider traded or why the company acted.