Liquidia Corporation has announced a significant financial move by amending its agreement with Healthcare Royalty to potentially add up to $100 million in financing. The company intends to utilize the funds for various purposes, including the ongoing commercial development of Yutrepia™ (treprostinil) inhalation powder for the treatment of pulmonary arterial hypertension (PAH) and pulmonary hypertension associated with interstitial lung disease (PH-ILD), as well as for general corporate purposes.
As per the terms of the sixth amendment, Liquidia will receive $25.0 million at the closing, with the potential to receive two additional tranches of funding: $50.0 million upon the first commercial sale of Yutrepia following the receipt of final FDA approval for the treatment of PAH and PH-ILD, and an additional $25.0 million upon achieving aggregate net sales of Yutrepia in excess of $100 million at any time on or before June 30, 2026.
The company's Chief Financial Officer and Chief Operating Officer, Michael Kaseta, expressed optimism about the potential combination of the proceeds resulting from the sixth amendment and a successful Yutrepia launch, indicating the potential for Liquidia to reach profitability without the need for additional capital.
In exchange for the additional $25.0 million funded at closing, Liquidia has agreed to a fixed payment schedule that terminates in 2032. Furthermore, the aggregate payments to Healthcare Royalty are capped at 175% of the total amounts advanced by HCRX, with a potential true-up payment to be made by Liquidia if HCRX's internal rate of return is less than a minimum rate of return on the date the cap is reached.
This move comes as Liquidia Corporation continues to focus on developing innovative therapies for patients with rare cardiopulmonary diseases, with a current emphasis on the development and commercialization of products in pulmonary hypertension and other applications of its proprietary PRINT® technology. The company's lead candidate, Yutrepia, is an investigational drug for the treatment of PAH and PH-ILD.
The amendment and the potential financing it brings represent a significant development for Liquidia Corporation's financial position and its ongoing efforts in the biopharmaceutical space. Today the company's shares have moved 0.4% to a price of $14.85. If you want to know more, read the company's complete 8-K report here.
