Liquidia Corporation (NASDAQ: LQDA) and Pharmosa Biopharm have recently announced an expansion of their collaboration to develop a sustained release inhaled treprostinil (L606), an innovative therapy for patients with rare cardiopulmonary diseases. This amendment to the exclusive license agreement includes key markets in Europe, Japan, and elsewhere, allowing Liquidia to broaden its licensed territory beyond North America. As part of the agreement, Liquidia has also acquired rights to Pharmosa’s next-generation nebulizers for use with L606.
The expanded partnership involves a significant financial commitment, with Pharmosa set to receive an upfront payment of $3.5 million and up to $157.75 million in additional development and sales milestones tied to commercial sales outside of North America. Notably, royalties payable by Liquidia to Pharmosa on global net sales of L606 remain two tiers of low, double-digit royalties as set forth in the original agreement.
Clinically, L606 continues to generate encouraging data, demonstrating a favorable tolerability and titratability profile in an open-label safety study in the United States for the treatment of pulmonary arterial hypertension (PAH) and pulmonary hypertension associated with interstitial lung disease (PH-ILD). Pharmacokinetic studies in healthy volunteers have shown therapeutic levels of L606 up to 12 hours and a 7-times lower peak plasma concentration compared to Tyvaso®, indicating controlled, continuous drug coverage during sleeping and waking hours.
L606 is an investigational, liposomal formulation of treprostinil administered twice-daily with a short-duration next-generation nebulizer. The proprietary liposomal formulation encapsulates treprostinil, allowing for slow, controlled release into the lung, enhancing drug exposure over an extended period and reducing local irritation of the upper respiratory tract. It is currently being evaluated in an open-label study in the United States for the treatment of PAH, with a planned pivotal study for the treatment of PH-ILD.
Liquidia Corporation, a biopharmaceutical company focusing on the development and commercialization of products in pulmonary hypertension, is also developing Yutrepia™ (treprostinil) inhalation powder and currently markets generic treprostinil injection for the treatment of PAH.
Pharmosa Biopharm Inc. (PBI), a Taiwan-based biotechnology company, is focused on developing new drugs through its proprietary liposomal formulations and manufacturing technology, with the aim of expanding the clinical potential of existing drugs by exploiting innovative delivery formulations and medical devices.
The expansion of this collaboration reflects the companies' commitment to addressing the unmet medical needs of patients with PAH and PH-ILD, particularly in regions outside of North America, and underscores the potential for long-term value creation for both parties involved in the partnership. The market has reacted to these announcements by moving the company's shares -2.1% to a price of $10.01. For the full picture, make sure to review Liquidia's 8-K report.
