United Therapeutics and Liquidia have settled their patent fight on terms that put a large cash burden on Liquidia and a smaller offsetting payment to Liquidia.
Liquidia agreed to pay UTC $185 million within 30 business days of the execution date, covering damages tied to sales of the infringing Yutrepia product from June 2, 2025 through the execution date. Liquidia also agreed to pay another $145.4 million for ongoing sales to PH-ILD patients after the execution date, with that amount split into two equal installments of $72.7 million due on or before January 31, 2027 and April 30, 2027.
UTC, in turn, agreed to pay Liquidia $10 million within 30 business days to resolve C.A. No. 2:19-cv-10170.
The agreement requires Liquidia to secure a letter of credit within 10 business days to back the $185 million upfront payment and the $145.4 million future payment. If Liquidia misses that deadline, UTC can terminate the agreement immediately.
The deal also sets a timetable for ending the litigation. Within 10 days after UTC receives the $185 million payment, the parties will seek dismissal with prejudice of the pending claims and counterclaims listed in Schedule A, except for claims against Robert Roscigno individually. Liquidia must also provide a sworn declaration after FDA approval of a product label change stating that it is no longer marketing, promoting, distributing, selling, or offering the infringing product in the U.S.
In total, Liquidia’s cash obligations under the settlement reach $330.4 million, while UTC’s payment to Liquidia is $10 million. Today the company's shares have moved -1.22% to a price of $543.40. Check out the company's full 8-K submission here.
