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Liquidia Receives $50M from HCRx, Accelerates YUTREPIA’s Commercial Launch Following Favorable Court Ruling

Liquidia Corporation (NASDAQ:LQDA) is one of the best low priced pharma stocks to buy now. On June 24, Liquidia announced the receipt of an additional $50 million from Healthcare Royalty/HCRx. The funding followed the US District Court for the Middle District of North Carolina denying United Therapeutics Corp.’s (NASDAQ:UTHR) request for a preliminary injunction and temporary restraining order, and the subsequent first commercial sale of YUTREPIA (treprostinil) inhalation powder.

Under the terms of their financing agreement, Liquidia received a total of $175 million out of a potential $200 million from HCRx. An additional $25 million may become available upon mutual agreement if Liquidia’s aggregate net sales of YUTREPIA exceed $100 million by June 30, 2026. The $50 million received is subject to a fixed payment schedule through 2033, with total payments to HCRx capped at 175% of the funded amounts.

An aerial view of a biopharmaceutical manufacturing plant, signifying the company’s expansive operations.

A true-up payment may be required if HCRx’s internal rate of return for this $50 million falls below a 13% minimum threshold when the cap is reached. These funds will be used to accelerate YUTREPIA’s commercial launch. YUTREPIA is an inhaled dry-powder formulation of treprostinil, a prostacyclin analog, delivered via a convenient, palm-sized device. It was designed using Liquidia’s proprietary PRINT technology.

Liquidia Corporation (NASDAQ:LQDA) is a biopharmaceutical company that develops, manufactures, and commercializes various products for unmet patient needs in the US.

United Therapeutics Corp. (NASDAQ:UTHR) is a biotechnology company that develops and commercializes products to address the unmet medical needs of patients with chronic and life-threatening diseases.

While we acknowledge the potential of LQDA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than LQDA and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

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