Investing.com -- Shares of Liquidia Technologies Inc (NASDAQ: LQDA ) closed up 13.2% following a Bloomberg Law report that a federal judge dismissed United Therapeutics Corp .’s (NASDAQ: UTHR ) cross-claims against the company and the US Food and Drug Administration. This legal development clears a significant hurdle for Liquidia, paving the way for the launch of its lung-disease drug Yutrepia.
The ruling, issued by Judge Timothy J. Kelly of the US District Court for the District of Columbia on Friday, rejected United Therapeutics’ claims that future economic harm provided standing in the case. The judge emphasized that final FDA approval is "much more than mere rubber stamp," signaling the court’s recognition of the regulatory process’s integrity.
The dismissal is particularly timely for Liquidia as it allows Yutrepia, which is positioned to compete with United Therapeutics’ Tyvaso, to receive final approval and potentially launch as early as this month. The market’s positive response reflects the removal of a significant legal obstacle, as Yutrepia’s path to market had been clouded by the litigation with United Therapeutics, which claimed exclusivity for the dry-powder-inhalation version of Tyvaso until May 23.
Investors are reacting to the news that Liquidia now has a clear runway for Yutrepia’s market entry, which could occur when United Therapeutics’ exclusivity expires. This development is seen as a strategic win for Liquidia, potentially allowing the company to capitalize on a market segment that has been, until now, dominated by United Therapeutics.
As the trading session closed, Liquidia Technologies’ stock reflected the market’s optimism about the company’s prospects. With the legal barriers removed, attention now turns to the company’s ability to execute the launch and commercialization of Yutrepia effectively. The upcoming launch will be a critical moment for Liquidia, as it seeks to establish a foothold in the treatment of lung diseases and compete against established therapies.
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