Shares of United Therapeutics Corp. (NASDAQ:UTHR) are rising in Thursday morning trading following a federal court victory in its patent litigation against competitor Liquidia Corp.
Here’s what investors need to know.
- United Therapeutics stock is moving in positive territory. What’s pushing UTHR stock higher?
Federal Court Patent Ruling Against Liquidia
The company announced late Wednesday that the U.S. District Court for the District of Delaware ruled in favor of United Therapeutics in its patent infringement lawsuit against Liquidia.
The court determined that Liquidia induces infringement of claims 1 and 14 of United Therapeutics’ U.S. Patent No. 11,826,327, which covers the use of inhaled treprostinil to treat pulmonary hypertension associated with interstitial lung disease (PH-ILD). The court further concluded that Liquidia failed to prove the patent claims were invalid.
As a result of the ruling, United Therapeutics stated it is seeking a court order instructing the U.S. Food and Drug Administration to withdraw its approval of Liquidia’s New Drug Application for Yutrepia, which could force the competing drug off the U.S. market until its label omits the PH-ILD indication. The company also intends to pursue monetary damages and royalties on past Yutrepia sales.
Management Reaction and BTIG Upgrade
The court set a one-week deadline for both parties to submit an agreed-upon form of final judgment. The decision fortifies United Therapeutics’ market leadership with its approved Tyvaso and Tyvaso DPI products.
“We are pleased with the Court’s decision, which reinforces our significant research and commitment to bring innovative therapies to the patients we serve,” said Michael Benkowitz, President and Chief Operating Officer of United Therapeutics. “Our immediate priority is ensuring that no patient goes without the therapy they need, and we are ready to support a seamless transition to Tyvaso or Tyvaso DPI should PH-ILD be removed from the Yutrepia label.”
On Thursday morning, BTIG analyst Julian Harrison upgraded United Therapeutics from Neutral to Buy, setting a street-high price target of $728 on the stock.
UTHR Stock Rises Thursday Morning
UTHR Price Action: United Therapeutics shares were up 1.44% at $549.69 during premarket trading on Thursday, according to Benzinga Pro data.
Image: Shutterstock
Login to comment