Liquidia Corporation said that an investment by HealthCare Royalty (HCRx) of up to $100 million will support further clinical development and the potential launch of the company’s Yutrepia treprostinil DPI. In return, HCRx will get tiered royalties on potential net revenue from Yutrepia and other Liquidia products in addition to fixed payments from Liquidia, with total payments limited to 175% of the total advanced. The FDA tentatively approved Liquidia’s NDA for Yutrepia in November 2021; ongoing patent litigation with United Therapeutics is holding up full approval at this time.
According to Liquidia, HCRx will provide $32.5 million at closing of the financing deal and $35 million if and when the patent litigation is resolved successfully. HCRx may also provide $7.5 million “at Liquidia’s discretion to support any acquisition of rights to a clinical stage or commercial stage biopharmaceutical product to diagnose, prevent, or treat pulmonary hypertension.” An additional $25 million would be available “upon the mutual agreement of the parties.”
Liquidia Chief Financial Officer Michael Kaseta commented, “HealthCare Royalty is a premier investment firm, and we are thrilled with this new investment partnership. Not only does their investment further validate the commercial opportunity for Yutrepia and our confidence in the path to FDA approval, but it also provides non-dilutive capital that preserves the financial flexibility to potentially accelerate our launch preparations ahead of the resolution of our ongoing litigation. We have never been in a stronger financial position when combining the current cash on-hand, reduced minimum cash requirements, expected sales of treprostinil injection and access to capital provided by this agreement.”
HCRx Chairman and Chief Executive Officer Clarke Futch said, “Having followed Liquidia’s progress for several years, we make this investment with confidence that the value of its products will soon be realized. Our extensive diligence on Yutrepia and the management team lead us to believe that Liquidia will become a significant force in addressing the needs of patients suffering from rare cardio-pulmonary diseases. We are pleased to partner with Liquidia today and to support their planned growth in the immediate and long-term future.”
Read the Liquidia press release.
