Core Insights - Liquidia Corporation reported a second-quarter loss of 49 cents, which was worse than the consensus estimate of a loss of 43 cents, but sales reached $8.84 million, significantly exceeding the consensus of $3.86 million [1][2] Financial Performance - The company experienced a second-quarter loss of 49 cents per share, missing the expected loss of 43 cents [1] - Sales for the quarter were reported at $8.84 million, surpassing the consensus estimate of $3.86 million [1] Product Development and Market Response - Liquidia analyzed interim data from the ASCENT study, which involved 54 patients with pulmonary hypertension associated with interstitial lung disease (PH-ILD) [2] - The FDA approved and launched YUTREPIA™ (treprostinil) inhalation powder, with over 350 physicians prescribing it within 11 weeks of approval, leading to more than 900 unique patient prescriptions and over 550 patient starts [3] Analyst Ratings and Price Targets - Wells Fargo analyst Tiago Fauth maintained an Overweight rating on Liquidia and raised the price target from $25 to $31 [6] - Raymond James analyst Ryan Deschner maintained a Strong Buy rating and increased the price target from $33 to $41 [6]

Company Performance - Liquidia Technologies, Inc. reported a quarterly loss of $0.49 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.43, and compared to a loss of $0.37 per share a year ago, indicating a decline in performance [1] - The company posted revenues of $8.84 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 124.46%, and showing significant growth from $3.66 million in the same quarter last year [2] - Over the last four quarters, Liquidia has not surpassed consensus EPS estimates, indicating challenges in meeting earnings expectations [2] Stock Performance - Liquidia Technologies shares have increased approximately 80.3% since the beginning of the year, significantly outperforming the S&P 500's gain of 8.4% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.36 on revenues of $11.67 million, and for the current fiscal year, it is -$1.60 on revenues of $42.59 million [7] Industry Outlook - The Medical - Biomedical and Genetics industry, to which Liquidia belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, suggesting a challenging environment for stocks in this sector [8] - The performance of Liquidia's stock may be influenced by the overall outlook for the industry, as historical data shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Financial Performance - Liquidia Corporation reported a second-quarter loss of $0.49, missing the consensus estimate of a loss of $0.43 [1] - Sales reached $8.84 million, significantly exceeding the consensus of $3.86 million [1] - The net product revenue for the three months ending June 30, 2025, was $6.5 million, following the full FDA approval for Yutrepia on May 23, 2025 [1] Product Development and Clinical Trials - The company analyzed interim data from the ASCENT study, which enrolled 54 patients with pulmonary hypertension associated with interstitial lung disease (PH-ILD) [3] - The tolerability profile of Yutrepia in PH-ILD was consistent with initial observations, with 18.5% of patients discontinuing the study, none due to drug-related adverse events [4] - The median improvements in six-minute walk distance were 21.5 meters at week 8 and 31.5 meters at week 16, indicating positive efficacy [5] Market Reaction - LQDA stock increased by 14.13%, reaching $24.20 at the time of publication [6]

Financial Data and Key Metrics Changes - The company closed the quarter with over $173 million in cash and cash equivalents, positioning itself well for future growth and profitability [13] - Revenue for the second quarter was $8.8 million, with $6.5 million from Eutrebia product sales and $2.3 million from service revenue related to a promotion agreement [13][14] - Expenses were in line with expectations as the company transitioned into commercialization mode, with anticipated increases in R&D expenses for ongoing studies [14][15] Business Line Data and Key Metrics Changes - Eutrebia has seen over 900 unique patient prescriptions and more than 550 patient starts within the first eleven weeks of launch, indicating strong market adoption [5][6] - The conversion rate from prescriptions to patient starts was 75% during the first six weeks, showcasing effective market penetration despite initial barriers [9][10] Market Data and Key Metrics Changes - The company has observed broad demand from cardiologists and pulmonologists, treating a diverse patient population including those new to prostacyclin therapy and those switching from existing treatments [7][8] - The ASCENT study demonstrated favorable tolerability, with only 18.5% of patients discontinuing treatment at week sixteen, contrasting sharply with higher discontinuation rates seen in competitors [10][11] Company Strategy and Development Direction - The company aims to build long-term leadership in the prostacyclin market through a differentiated product profile and robust commercial strategies [17] - Plans include expanding manufacturing capabilities to potentially triple production capacity by 2026, supporting ongoing growth [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued growth of Eutrebia, anticipating further acceleration as market access improves and payer engagement increases [21][22] - The company is focused on leveraging early successes to enhance brand awareness and expand its prescriber base [56][57] Other Important Information - The company plans to host an R&D day in the fall to provide updates on ongoing studies, particularly for L-six zero six, which is expected to complement Eutrebia's market presence [18][73] - The company has signed contracts with major commercial payers, which are expected to enhance patient access and reimbursement in the near future [62][63] Q&A Session Summary Question: Weekly growth trends for Eutrebia - Management noted that uptake has been accelerating over time, with each week showing improvement in prescription rates [21] Question: PAH versus PHILD patient mix - The company refrained from disclosing specific numbers regarding the patient mix, citing the need for clarity in data collection [22] Question: Median versus average six-minute walk data in ASCENT trial - Management explained that median data is more reflective and less susceptible to outliers, providing a clearer picture of treatment efficacy [24][25] Question: Proportion of paid drug associated with patient starts - The company indicated that less than 50% of patient starts have been on free voucher drugs, aligning with expectations from previous launches [30][31] Question: Gross to net assumptions for Eutrebia - Management stated that they have not projected gross to net figures yet but expect improved access as new market blocks are removed [43][44] Question: Update on patent litigation - The company is awaiting a decision from the judge regarding the patent litigation, with an accelerated timeline for the ruling [66] Question: Implications of competitor studies on orphan drug exclusivity - Management indicated that if competitors succeed, they would develop L-six zero six to benefit from the market once exclusivity expires [69]

Liquidia Corporation 2Q2025 Financial Results & Corporate Update August 12, 2025 ©2025 LIQUIDIA CORPORATION ALL RIGHTS RESERVED Forward-looking statements ©2025 LIQUIDIA CORPORATION ALL RIGHTS RESERVED 3 Rapid adoption over last 11 weeks! As of August 8, 2025 This presentation includes, and our response to questions may include, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 ("PSLRA"). All statements contained in this presentation other than statements ...

Financial Performance - Total revenue for Q2 2025 was $8.837 million, a significant increase from $3.659 million in Q2 2024, representing a growth of 142% year-over-year[18]. - Product sales for Q2 2025 amounted to $6.517 million, while service revenue was $2.320 million, compared to $0 in product sales and $3.659 million in service revenue in Q2 2024[18]. - The net loss for Q2 2025 was $41.579 million, compared to a net loss of $28.668 million in Q2 2024, indicating a 45% increase in losses year-over-year[18]. - For the six months ended June 30, 2025, Liquidia Corporation reported a net loss of $79.9 million, compared to a net loss of $58.8 million for the same period in 2024, indicating an increase in losses of approximately 36.0% year-over-year[24]. - Total program expenses for the three months ended June 30, 2025, were $17.579 million, up from $6.290 million in 2024, indicating a 179% increase[177]. - The company reported personnel expenses, including stock-based compensation, of $21.431 million for the three months ended June 30, 2025, compared to $15.338 million in 2024, marking a 40% increase[177]. Expenses - Research and development expenses for the first half of 2025 totaled $12.987 million, down from $19.477 million in the same period of 2024, reflecting a decrease of 33%[18]. - Selling, general and administrative expenses for Q2 2025 were $38.824 million, up from $19.943 million in Q2 2024, marking a 94% increase[18]. - The company reported stock-based compensation expenses of $14.4 million for the six months ended June 30, 2025, compared to $8.9 million for the same period in 2024, reflecting a significant increase of approximately 62.0%[24]. - Liquidia's net cash used in operating activities for the six months ended June 30, 2025, was $70.2 million, compared to $47.5 million for the same period in 2024, representing an increase of approximately 47.8%[24]. Assets and Liabilities - Total current assets as of June 30, 2025, were $195.583 million, an increase from $185.105 million as of December 31, 2024[17]. - Total liabilities increased to $242.221 million as of June 30, 2025, compared to $150.935 million as of December 31, 2024, representing a 61% increase[17]. - Cash and cash equivalents were $173.422 million as of June 30, 2025, slightly down from $176.479 million as of December 31, 2024[17]. - As of June 30, 2025, the accumulated deficit reached $637.3 million, reflecting the ongoing financial challenges faced by the company[35]. - The carrying value of long-term debt as of June 30, 2025, was $193.6 million, with a fair value of $188.3 million, compared to a carrying value of $113.3 million and a fair value of $110.2 million as of December 31, 2024[93]. Product Development and Commercialization - YUTREPIA, an inhaled dry powder formulation of treprostinil, was approved by the FDA on May 23, 2025, and commercially launched on June 2, 2025[28]. - The company is focused on maintaining regulatory approvals for its products, including YUTREPIA, and plans to develop and commercialize additional product candidates[9]. - Liquidia's revenue generation includes sales from YUTREPIA and profit-sharing from Sandoz's generic treprostinil injection, indicating a diversified revenue stream[26]. - The company is developing L606, an investigational liposomal formulation of treprostinil, which is currently being evaluated in an open-label study for PAH and PH-ILD[30]. Legal and Regulatory Matters - The company is involved in ongoing patent litigation with United Therapeutics regarding YUTREPIA, which could result in substantial costs and potential market removal[159][163]. - The company is actively defending against claims in various litigations, which may involve substantial costs and uncertain outcomes[165]. - In the RareGen Litigation, a judgment of $70.6 million was entered against the company, which is currently under appeal[172]. - The company has filed a motion to dismiss claims in a breach of contract litigation, which was denied, and an appeal has been filed[168]. Stock and Equity - The company reported a weighted average of 85,588,108 common shares outstanding for Q2 2025, compared to 76,435,831 shares for Q2 2024[18]. - The company has 1,553,998 shares available for future grants under the 2020 Long-Term Incentive Plan as of June 30, 2025[111]. - The company issued 117,320 shares under the Employee Stock Purchase Plan during the six months ended June 30, 2025, compared to 67,982 shares in the same period of 2024[115]. - The total unamortized compensation expense as of June 30, 2025, was $51,936 million, with stock options at $5,096 million and restricted/performance stock units at $46,840 million[117]. Cash Management - Liquidia's cash and cash equivalents at the end of the period were $176.9 million, up from $133.1 million at the end of June 2024, representing an increase of approximately 33.0% year-over-year[24]. - The company has a revenue interest financing agreement with HealthCare Royalty Partners IV, L.P., which requires maintaining cash and cash equivalents of at least $15.0 million[36]. - The company is required to maintain cash and cash equivalents of at least $15.0 million for the remainder of the payment term, concluding in 2033[140]. Inventory and Supply Chain - As of June 30, 2025, the total inventory increased to $28.6 million from $10.8 million as of December 31, 2024, representing a 164% increase[94]. - The company began capitalizing prelaunch inventory for YUTREPIA in late 2023, indicating a positive outlook for future sales[54]. - The company has non-cancelable commitments for product manufacturing and supply costs of approximately $14.2 million as of June 30, 2025[156]. - The company entered into a multi-year supply agreement with LGM Pharma, requiring a minimum purchase commitment of $2.7 million annually[156].

[Corporate Overview and Highlights](index=1&type=section&id=Corporate%20Overview%20and%20Highlights) The company achieved significant milestones in Q2 2025, including FDA approval and successful commercial launch of YUTREPIA, securing financing, and positive clinical data, positioning for growth [CEO Statement & Key Achievements](index=1&type=section&id=CEO%20Statement%20%26%20Key%20Achievements) The CEO highlighted Q2 as a defining period, marked by successful FDA approval and rapid commercial launch of YUTREPIA™ for PAH and PH-ILD, with initial market uptake exceeding expectations and positive interim data from the ASCENT study reinforcing its profile - YUTREPIA™ achieved over **900** unique patient prescriptions and **550** patient starts within the first 11 weeks of its commercial launch[3](index=3&type=chunk)[6](index=6&type=chunk) - The initial launch success was achieved with broad demand from both cardiologists and pulmonologists, even ahead of securing full payor coverage, indicating strong underlying clinical demand[4](index=4&type=chunk) - Interim data from the ASCENT study in PH-ILD patients showed a median improvement in six-minute walk distance (6MWD) of **31.5 meters** at Week 16, with a favorable tolerability profile and no discontinuations due to drug-related adverse events like cough[5](index=5&type=chunk)[6](index=6&type=chunk) - The company is well-capitalized to scale YUTREPIA access and expand clinical programs following recent funding under its financing agreement with Healthcare Royalty (HCRx)[6](index=6&type=chunk) [Second Quarter and Recent Corporate Highlights](index=2&type=section&id=Second%20Quarter%20and%20Recent%20Corporate%20Highlights) This section details key corporate events in Q2 2025, including the FDA approval of YUTREPIA, its commercial launch, securing $50 million in financing, leasing a new 70,000 sq ft manufacturing facility, and positive interim data from the ASCENT trial - On May 23, 2025, the FDA approved YUTREPIA™ for treating PAH and PH-ILD, with the commercial launch and first shipments initiated in the first week of June 2025[10](index=10&type=chunk) - The company secured **$50.0 million** on June 23, 2025, under its financing agreement with HCRx following the first commercial sale of YUTREPIA[10](index=10&type=chunk) - To support future growth, Liquidia signed a lease on June 16, 2025, for an additional **70,000 square feet** of manufacturing space, targeted for occupancy in 2026[10](index=10&type=chunk) - The ASCENT open-label study was fully enrolled with **54** PH-ILD patients, and interim data showed good tolerability, with only **2 of 26** patients reporting a moderate cough and no change in mean cough scores through Week 16[10](index=10&type=chunk) [Q2 2025 Financial Performance](index=2&type=section&id=Q2%202025%20Financial%20Performance) Liquidia's Q2 2025 financial performance reflects initial YUTREPIA sales, increased net loss due to commercialization expenses, and a strong cash position [Financial Results Summary](index=2&type=section&id=Financial%20Results%20Summary) For Q2 2025, Liquidia reported total revenue of $8.8 million, primarily from YUTREPIA product sales, with a net loss increasing to $41.6 million due to a 95% rise in SG&A expenses for commercialization and a 36% decrease in R&D spending Q2 2025 vs Q2 2024 Financial Performance (in millions, except per share data) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **Product Revenue, net** | $6.5 | $0.0 | +$6.5 | | **Service Revenue, net** | $2.3 | $3.7 | -$1.4 | | **Total Revenue** | $8.8 | $3.7 | +$5.1 | | **R&D Expenses** | $6.0 | $9.4 | -36% | | **SG&A Expenses** | $38.8 | $19.9 | +95% | | **Net Loss** | ($41.6) | ($28.7) | +$12.9 | | **Net Loss Per Share** | ($0.49) | ($0.38) | +$0.11 | - Cash and cash equivalents stood at **$173.4 million** as of June 30, 2025, a slight decrease from **$176.5 million** at the end of 2024[8](index=8&type=chunk) - The **95%** increase in SG&A expenses was primarily driven by higher headcount for commercialization activities (**$8.8 million**), increased legal fees for ongoing litigation (**$5.8 million**), and commercial/consulting expenses (**$2.3 million**)[13](index=13&type=chunk) - The **36%** decrease in R&D expenses was mainly due to a shift in personnel from R&D to commercial activities and lower expenses for YUTREPIA development, partially offset by increased clinical expenses for the L606 program[12](index=12&type=chunk) [Condensed Financial Statements](index=7&type=section&id=Condensed%20Financial%20Statements) The unaudited condensed financial statements provide a detailed view of Liquidia's financial position and operational results, with the balance sheet showing total assets of $257.4 million and total liabilities of $242.2 million as of June 30, 2025, and a net loss of $41.6 million for the quarter Condensed Consolidated Balance Sheet Data (unaudited, in thousands) | | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $173,422 | $176,479 | | Total assets | $257,410 | $230,313 | | Total liabilities | $242,221 | $150,935 | | Total stockholders' equity | $15,189 | $79,378 | Condensed Consolidated Statements of Operations (unaudited, in thousands) | | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total revenue | $8,837 | $3,659 | | Total costs and expenses | $46,342 | $30,856 | | Loss from operations | ($37,505) | ($27,197) | | Total other expense, net | ($4,074) | ($1,471) | | Net loss and comprehensive loss | ($41,579) | ($28,668) | [Product Portfolio and Pipeline](index=3&type=section&id=Product%20Portfolio%20and%20Pipeline) Liquidia's portfolio includes the recently approved YUTREPIA, the investigational L606, and a generic treprostinil injection, leveraging proprietary technology for pulmonary hypertension treatments [YUTREPIA™ (treprostinil) Inhalation Powder](index=3&type=section&id=YUTREPIA%E2%84%A2%20(treprostinil)%20Inhalation%20Powder) YUTREPIA is an FDA-approved inhaled dry-powder formulation of treprostinil for treating PAH and PH-ILD, developed using Liquidia's proprietary PRINT® technology for enhanced lung deposition via a convenient, low-effort device - Indicated for the treatment of PAH and PH-ILD to improve exercise ability[16](index=16&type=chunk) - Utilizes PRINT® technology to create precise and uniform drug particles for enhanced delivery to the lung[16](index=16&type=chunk) [L606 (liposomal treprostinil) Inhalation Suspension](index=4&type=section&id=L606%20(liposomal%20treprostinil)%20Inhalation%20Suspension) L606 is an investigational, sustained-release liposomal formulation of treprostinil administered twice daily with a next-generation nebulizer, currently being evaluated in an open-label study for PAH and PH-ILD, with a global pivotal study planned for PH-ILD treatment - L606 is an investigational, sustained-release formulation of treprostinil administered twice-daily[17](index=17&type=chunk) - A global pivotal placebo-controlled efficacy study is planned for the treatment of PH-ILD[17](index=17&type=chunk) [Treprostinil Injection](index=4&type=section&id=Treprostinil%20Injection) This is a first-to-file, fully substitutable generic treprostinil for parenteral administration, equivalent to Remodulin, marketed in the United States through a commercial partnership with Sandoz - A fully substitutable generic treprostinil for parenteral administration[18](index=18&type=chunk) - Marketed in the U.S. in partnership with commercial partner Sandoz[18](index=18&type=chunk) [Other Information](index=5&type=section&id=Other%20Information) This section addresses forward-looking statements, highlighting litigation risks and the revision of prior financial statements due to immaterial accounting errors [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) This section contains standard cautionary language advising investors that the press release includes forward-looking statements involving significant risks and uncertainties, including ongoing patent litigation with United Therapeutics, which could materially affect actual results - The press release contains forward-looking statements with significant risks and uncertainties, and actual results could differ materially[23](index=23&type=chunk) - A key risk highlighted is the ongoing litigation with United Therapeutics, which is seeking an injunction that could block the continued sale of YUTREPIA[23](index=23&type=chunk) [Financial Statement Revision](index=6&type=section&id=Financial%20Statement%20Revision) The company disclosed that during Q1 2025, it identified and corrected immaterial errors in its accounting treatment of amendments to the HCR Agreement, leading to the voluntary revision of previously issued 2024 annual and interim financial statements - Immaterial errors were identified in the accounting treatment for the fourth and fifth amendments to the HCR Agreement[24](index=24&type=chunk) - Previously issued 2024 financial statements have been revised to correct the errors, with the financial data presented in this press release reflecting these revisions[24](index=24&type=chunk)

Core Viewpoint - Liquidia Corporation reported strong early commercial performance and clinical evidence for its newly approved product YUTREPIA, indicating significant market demand and potential for growth in treating pulmonary arterial hypertension (PAH) and pulmonary hypertension associated with interstitial lung disease (PH-ILD) [2][3][5] Company Highlights - The FDA approved YUTREPIA on May 23, 2025, and it was commercially launched in June 2025, with over 900 unique patient prescriptions and more than 550 patient starts recorded within 11 weeks post-launch [6][7] - The initial demand for YUTREPIA has exceeded expectations, with 75% of prescriptions converting to treatment starts in the first six weeks [7] - Liquidia has signed a lease for approximately 70,000 square feet of additional manufacturing space, targeted for occupancy in 2026, to support continued growth [7] - The company received $50 million under its financing agreement with Healthcare Royalty following the first commercial sale of YUTREPIA [7] Clinical Evidence - The ongoing ASCENT study has shown positive interim data, with median improvements in six-minute walk distance of 21.5 meters at Week 8 and 31.5 meters at Week 16, reinforcing YUTREPIA's tolerability and efficacy profile [4][8] - The study fully enrolled 54 patients, with no discontinuations due to drug-related adverse events, indicating a favorable safety profile [4][8] Financial Performance - As of June 30, 2025, Liquidia reported cash and cash equivalents of $173.4 million, a slight decrease from $176.5 million at the end of 2024 [9][27] - Product revenue for the second quarter of 2025 was $6.5 million, marking the first revenue recognition following YUTREPIA's approval [9][28] - Service revenue decreased to $2.3 million from $3.7 million in the same period last year, primarily due to unfavorable gross-to-net returns [10][28] - Research and development expenses decreased by 36% to $6.0 million, reflecting a shift towards commercialization activities [12][28] - Selling, general and administrative expenses increased by 95% to $38.8 million, driven by higher personnel costs and legal fees related to ongoing litigation [13][28] - The net loss for the second quarter was $41.6 million, or $0.49 per share, compared to a net loss of $28.7 million, or $0.38 per share, in the prior year [14][28]

Core Viewpoint - Liquidia Corporation is set to report its second quarter 2025 financial results on August 12, 2025, and will host a webcast to discuss these results and provide a corporate update [1]. Company Overview - Liquidia Corporation is a biopharmaceutical company focused on developing innovative therapies for patients with rare cardiopulmonary diseases [3]. - The company is engaged in the development and commercialization of products targeting pulmonary hypertension, utilizing its proprietary PRINT Technology [3]. - Liquidia's approved product, YUTREPIA™ (treprostinil) inhalation powder, is designed for treating pulmonary arterial hypertension (PAH) and pulmonary hypertension associated with interstitial lung disease (PHILD) [3]. - The company is also working on L606, an investigational sustained-release formulation of treprostinil, which is administered twice daily using a next-generation nebulizer [3]. - Additionally, Liquidia markets a generic version of Treprostinil Injection for PAH treatment [3].

Group 1 - The article emphasizes value-oriented investment ideas, particularly in mid/small cap stocks, and highlights the importance of identifying orphaned and unfashionable investment opportunities with potential catalysts for asymmetric upside/downside payoffs [1] - There is a noted shift towards being influenced more by momentum and quality in investment decisions compared to previous approaches [1] Group 2 - The author has a beneficial long position in LQDA shares, indicating a personal investment interest in the company [2] - The information presented is based on sources believed to be reliable, but it has not been independently verified, suggesting a need for caution in interpreting the data [3]