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