Key Highlights
Liquida (LQDA) has created a new treatment offering via a dry powder inhaler (DPI) using treprostinil, to help patients suffering from pulmonary arterial hypertension (PAH) and pulmonary hypertension associated with interstitial lung disease (PH-ILD).
LQDA has been in a multi-year litigation journey against incumbent, United Therapeutics Corp (UTHR) over their monopoly of PAH and PH-ILD treatments.
UTHR has a history of dragging new drug companies through litigation for years if they pose a threat to their current drug portfolio.
Recently, in October, SCOTUS struck down the last remaining appeal by UTHR but this did not change the fact that the FDA retroactively applied NCI exclusivity for UTHR which expires in May of 2025.
LQDA has sued the FDA for this “unlawful” decision and we should be hearing from the judge in the next month or so if LQDA can start selling before May.
Assuming that they launch in May, we see a path where shares could double at the very least if all works out.
Disc: We are long Liquidia Corp (LQDA) which we disclosed Friday afternoon.
Firstly, we just want to say that this situation represents everything wrong with the pharma industry and the FDA in their ability to curtail innovation and minimize the number of patients that can be helped. It’s a function of greed and abuse by the current regulation system, which we hope will change soon.
Background Context of the Situation
What we just mentioned isn’t an opinion of the situation, it’s a fact. In order to understand the current situation and trade, we need to understand why this setup is even happening in the first place.
Subscribe to Cedar Grove Capital Management to read the rest.
Become a paying subscriber to get access to this post and other subscriber-only research reports.
UpgradeA subscription gets you:
- 20 - 30 Subscriber-Only Reports per Year
- Small Cap and Below LONG Equity Research
- SHORT Equity, Special Situations, IPO Investment Research
- Earnings Updates, Thematic Research, and Quick Trade Ideas