Liquidia Corporation Strengthens Financial Position by Amending HealthCare Royalty Agreement to Incrementally Add Up to $100 Million

Core Viewpoint - Liquidia Corporation has announced a sixth amendment to its agreement with HealthCare Royalty to secure up to an additional $100 million in financing to support the development of its product YUTREPIA™ and other corporate purposes [1][2]. Financing Details - The financing will be provided in three tranches:$ 25 million at closing, $50 million upon the first commercial sale of YUTREPIA after FDA approval, and$ 25 million upon mutual agreement after achieving net sales exceeding $100 million by June 30, 2026 [2]. - The total payments to HealthCare Royalty are capped at 175% of the amounts advanced, with minimum rates of return set at 16%, 13%, and 12% for the new tranches [3]. Product Development Focus - Liquidia is focused on the commercial development of YUTREPIA for treating pulmonary arterial hypertension (PAH) and pulmonary hypertension associated with interstitial lung disease (PH-ILD) [1][4]. - The company is also pursuing clinical trials for pediatric patients and further evaluations for WHO Group 1 and Group 3 patients [1]. Management Insights - The Chief Financial Officer of Liquidia expressed optimism that the new financing, combined with a successful launch of YUTREPIA, could lead the company to profitability without needing additional capital [3]. - The CEO of HealthCare Royalty emphasized the potential of YUTREPIA to meet unmet medical needs in patients with PAH and PH-ILD [3]. Company Overview - Liquidia Corporation specializes in developing innovative therapies for rare cardiopulmonary diseases, with a focus on pulmonary hypertension and proprietary PRINT® Technology [4]. - The company also markets generic Treprostinil Injection for PAH treatment and is developing L606, a sustained-release formulation of treprostinil [4]. HealthCare Royalty Overview - HealthCare Royalty is a leading royalty acquisition company that has invested over$ 5 billion in more than 90 biopharmaceutical products [5].