United Therapeutics Resolves Patent Litigation with Liquidia via $330.4M Settlement

Executive Summary

On October 13, 2026, United Therapeutics Corporation entered into a comprehensive Settlement Agreement with Liquidia Technologies, Inc., bringing a definitive resolution to multiple contentious patent, antitrust, and trade secret proceedings between the two pharmaceutical rivals.

Key Terms of the Settlement

1. Financial Considerations:

   • Payments to United Therapeutics: Liquidia will pay an aggregate of $330.4 million to UT:
     • $185.0 million within 30 business days of execution, representing damages for past sales of Yutrepia for pulmonary hypertension associated with interstitial lung disease (PH-ILD).
     • $145.4 million in prospective damages for ongoing transition sales to PH-ILD patients, split into two equal installments of $72.7 million due on or before January 31, 2027, and April 30, 2027.
     • Liquidia must secure these payments via an irrevocable letter of credit within 10 business days.
   • Payment by United Therapeutics: UT will pay $10.0 million to Liquidia within 30 business days to settle all claims arising from the RareGen/Sandoz generic Remodulin® litigation.

2. Commercial & Regulatory Restrictions on Liquidia:

   • Liquidia must immediately apply to the FDA to amend Yutrepia's New Drug Application (NDA) to completely remove the PH-ILD indication and references.
   • Liquidia must immediately cease all marketing, advertising, promotion, medical education, and detailing for PH-ILD.
   • Liquidia must instruct prescribers to transition PH-ILD patients to alternative therapies, notify payers to deny PH-ILD authorization requests, and require Group 1 PAH certification on all order and voucher forms.
   • Liquidia must terminate the PH-ILD cohorts of its ASCENT clinical trial and cease publishing or disseminating data from those cohorts until expiration of UT's '327 patent.

3. Litigation Dismissals and Patent Covenants:

   • Mutual dismissals with prejudice for pending litigation (including Delaware District Court infringement findings and North Carolina federal actions).
   • Mutual covenants not to sue and agreements not to contest or challenge specified patents.

Commercial Impact

This settlement is highly favorable for United Therapeutics. Beyond securing $320.4 million in net cash proceeds, it protects UT's Tyvaso® and Tyvaso DPI® franchise from competition in the lucrative PH-ILD indication, eliminating Liquidia's Yutrepia as a direct labeled competitor in that patient segment until patent expiration.