Liquidia Corporation, a Morrisville, North Carolina-based biopharmaceutical company, announced on October 13, 2026 a global settlement agreement with United Therapeutics Corporation that resolves all six pending lawsuits between the companies. Under the settlement, YUTREPIA® (treprostinil) inhalation powder will remain available to patients with pulmonary arterial hypertension (PAH) without disruption.
“We are always guided by our commitment to act in the best interests of patients in everything we do. Today’s agreement fully resolves years of litigation and provides certainty to PAH patients that they can continue to access YUTREPIA, whose differentiated attributes have enabled its rapid adoption by physicians and patients since launch,” said Liquidia CEO Dr. Roger Jeffs. “We can now focus our full attention and resources on further growing the YUTREPIA brand, with the goal of making it the prostacyclin therapy of choice in PAH, whether patients are starting or switching from an inhaled therapy, transitioning from an oral prostacyclin, or de-escalating from parenteral prostacyclin to inhaled.”
How the Litigation Ends
The settlement follows a September 30, 2026 ruling by the U.S. District Court for the District of Delaware that claims of United Therapeutics’ ‘327 patent are valid and infringed by Liquidia. Those claims generally cover treatment of pulmonary hypertension associated with interstitial lung disease (PH-ILD) with inhaled treprostinil, including dry powder formulations. As part of the settlement, Liquidia has agreed not to appeal the ruling, has submitted a supplement to remove the PH-ILD indication from YUTREPIA’s label, and no longer promotes YUTREPIA for PH-ILD.
The settlement includes mutual releases and is not an admission of liability by either party. After Liquidia’s initial payment, the parties will dismiss with prejudice six matters spanning patent infringement, trade secret, breach of contract, and antitrust claims in federal and North Carolina courts.
Financial Terms
Liquidia will pay a net total of $380.7 million across 2026 and 2027:
- $175 million net payment to United Therapeutics within 30 business days, which includes funds United Therapeutics is paying Liquidia to resolve antitrust litigation tied to Treprostinil Injection.
- $145.4 million in two equal installments of $72.7 million, due on or before January 31 and April 30, 2027.
- $60.3 million this month to the parties with interests in the Treprostinil Injection antitrust litigation, in full satisfaction of those interests.
Liquidia also terminated its promotional agreement tied to Treprostinil Injection and will no longer commercially support the product.
“We are confident this settlement is in the best interests of our patients and shareholders and in our ability to meet the settlement obligations while continuing to invest in the business. We expect to fund the outlined payments from the ongoing sales of YUTREPIA and cash on hand,” said Michael Kaseta, Chief Operating Officer and Chief Financial Officer. “Preliminary and unaudited results from the third quarter 2026 included YUTREPIA net product sales of $222.7 million, contributing to total cash and cash equivalents of $396.1 million as of September 30, 2026. We expect to rebuild our cash position and fund our planned clinical studies without requiring additional financing.”
What’s Next
Liquidia will continue post-marketing studies of YUTREPIA and pivotal studies of L606, an investigational extended-release treprostinil formulation given twice daily with a next-generation nebulizer, to support PAH and PH-ILD indications. It is also exploring new studies in systemic sclerosis-associated Raynaud’s phenomenon (SSc-RP), for which YUTREPIA has FDA Fast Track designation, and pulmonary hypertension associated with COPD, where no approved options exist. YUTREPIA is not approved for either condition. The company will provide a broader update on its third-quarter earnings call in November.
About YUTREPIA and PAH
YUTREPIA is an inhaled dry-powder formulation of treprostinil delivered through a palm-sized device. It was designed using Liquidia’s PRINT® technology, which produces drug particles precise and uniform in size, shape, and composition, and was approved in 2025 for PAH. PAH is a rare, chronic, progressive disease in which the pulmonary arteries harden and narrow, potentially leading to right heart failure. An estimated 45,000 patients are diagnosed and treated in the U.S., and there is no cure.
