Liquidia Technologies (LQDA) PT Lowered to $58 at H.C. Wainwright

H.C. Wainwright analyst Andrew S. Fein lowered the price target on Liquidia Technologies (NASDAQ: LQDA) to $58.00 (from $130.00) while maintaining a Buy rating.

The analyst commented: "While the ultimate remedy remains uncertain for Liquidia’s patent litigation with United Therapeutics (UTHR: Buy)—including the possibility of broader restrictions on product availability—we believe the most likely near-term outcome is a “skinny label” for Yutrepia, with PH-ILD removed while the appeals process plays out, rather than an immediate disruption to the broader PAH business. Importantly, we view LQDA’s stock movement as an overreaction, given that the ruling does not by itself establish that Yutrepia will be removed from the market and the ultimate remedy has yet to be determined. With the PH-ILD contribution eliminated based on legal and regulatory uncertainty, we are removing PH-ILD from our model and focusing our valuation on PAH and the pipeline, where Yutrepia’s commercial trajectory remains intact. We believe deepened penetration into the PAH market can be a driver of near-term growth given Yutrepia’s attractive dosing and efficacy profile, and value per patient. In our view, this provides a more conservative framework for valuing the company while preserving the potential for additional value should the appeals process ultimately improve the PH-ILD outlook. Based on our estimated modeled peak sales in PAH alone reaching $1.1B in 2030, we currently focus on revenue driven by: (1) growth for the PAH indication; and (2) the L606 pipeline opportunity in both PAH and PH-ILD. We reiterate our Buy rating while reducing our price target from $130 to $58 per share. We believe the court ruling provides near-term uncertainty, while the platform remains a bastion of long-term value."

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