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

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Liquidia (NASDAQ: LQDA) has amended its agreement with HealthCare Royalty (HCRx) to secure up to $100 million in additional financing through three tranches:

- $25 million available at closing
- $50 million upon first commercial sale of YUTREPIA™ after FDA approval for PAH and PH-ILD treatment
- $25 million upon reaching $100 million in YUTREPIA sales by June 30, 2026

The funds will support YUTREPIA's commercial development, clinical trials including pediatric studies, L606 development, and general corporate purposes. The agreement includes fixed payment schedules until 2032, with payments capped at 175% of advanced amounts, plus potential true-up payments based on minimum return rates of 16%, 13%, and 12% for the three tranches.

Liquidia (NASDAQ: LQDA) ha modificato il suo accordo con HealthCare Royalty (HCRx) per garantire fino a 100 milioni di dollari in finanziamenti aggiuntivi attraverso tre tranche:

- 25 milioni di dollari disponibili al closing
- 50 milioni di dollari al primo vendita commerciale di YUTREPIA™ dopo l'approvazione della FDA per il trattamento della PAH e PH-ILD
- 25 milioni di dollari al raggiungimento di 100 milioni di dollari in vendite di YUTREPIA entro il 30 giugno 2026

I fondi supporteranno lo sviluppo commerciale di YUTREPIA, studi clinici inclusi studi pediatrici, sviluppo di L606 e scopi aziendali generali. L'accordo include programmi di pagamento fissi fino al 2032, con pagamenti limitati al 175% degli importi anticipati, più potenziali pagamenti di adeguamento basati su tassi di rendimento minimi del 16%, 13% e 12% per le tre tranche.

Liquidia (NASDAQ: LQDA) ha modificado su acuerdo con HealthCare Royalty (HCRx) para asegurar hasta 100 millones de dólares en financiamiento adicional a través de tres tramos:

- 25 millones de dólares disponibles al cierre
- 50 millones de dólares tras la primera venta comercial de YUTREPIA™ después de la aprobación de la FDA para el tratamiento de la PAH y PH-ILD
- 25 millones de dólares al alcanzar 100 millones de dólares en ventas de YUTREPIA antes del 30 de junio de 2026

Los fondos apoyarán el desarrollo comercial de YUTREPIA, ensayos clínicos incluidos estudios pediátricos, desarrollo de L606 y propósitos corporativos generales. El acuerdo incluye cronogramas de pago fijos hasta 2032, con pagos limitados al 175% de los montos adelantados, más posibles pagos de ajuste basados en tasas de retorno mínimas del 16%, 13% y 12% para los tres tramos.

리퀴디아 (NASDAQ: LQDA)는 헬스케어 로열티(HCRx)와의 계약을 수정하여 1억 달러의 추가 자금 조달을 확보했습니다. 이는 세 개의 분할금으로 이루어져 있습니다:

- 2500만 달러는 거래 종료 시 사용 가능
- 5000만 달러는 PAH 및 PH-ILD 치료를 위한 FDA 승인 후 YUTREPIA™의 첫 상업적 판매 시점에 지급
- 2500만 달러는 2026년 6월 30일까지 YUTREPIA 판매액이 1억 달러에 도달했을 때 지급됩니다.

이 자금은 YUTREPIA의 상업적 개발, 임상 시험(소아 연구 포함), L606 개발 및 일반 기업 목적을 지원합니다. 계약에는 2032년까지 고정 지불 일정이 포함되어 있으며, 지급액은 선급금의 175%로 제한되며, 세 개의 분할금에 대해 최소 수익률이 16%, 13%, 12%일 경우 조정 지급 가능성이 있습니다.

Liquidia (NASDAQ: LQDA) a modifié son accord avec HealthCare Royalty (HCRx) pour garantir jusqu'à 100 millions de dollars de financement supplémentaire par le biais de trois tranches :

- 25 millions de dollars disponibles à la clôture
- 50 millions de dollars lors de la première vente commerciale de YUTREPIA™ après l'approbation de la FDA pour le traitement de la PAH et de la PH-ILD
- 25 millions de dollars lorsque 100 millions de dollars de ventes de YUTREPIA seront atteints d'ici le 30 juin 2026

Les fonds soutiendront le développement commercial de YUTREPIA, les essais cliniques, y compris les études pédiatriques, le développement de L606 et les objectifs d'entreprise généraux. L'accord comprend des calendriers de paiement fixes jusqu'en 2032, avec des paiements plafonnés à 175 % des montants avancés, plus des paiements d'ajustement potentiels basés sur des taux de rendement minimum de 16 %, 13 % et 12 % pour les trois tranches.

Liquidia (NASDAQ: LQDA) hat seine Vereinbarung mit HealthCare Royalty (HCRx) geändert, um bis zu 100 Millionen US-Dollar an zusätzlicher Finanzierung in drei Tranchen zu sichern:

- 25 Millionen US-Dollar sind bei Abschluss verfügbar
- 50 Millionen US-Dollar nach dem ersten kommerziellen Verkauf von YUTREPIA™ nach der FDA-Zulassung zur Behandlung von PAH und PH-ILD
- 25 Millionen US-Dollar nach Erreichen von 100 Millionen US-Dollar an YUTREPIA-Verkäufen bis zum 30. Juni 2026

Die Mittel werden die kommerzielle Entwicklung von YUTREPIA, klinische Studien einschließlich pädiatrischer Studien, die Entwicklung von L606 und allgemeine Unternehmenszwecke unterstützen. Die Vereinbarung umfasst feste Zahlungspläne bis 2032, wobei die Zahlungen auf 175 % der vorausgezahlten Beträge begrenzt sind, zuzüglich möglicher Anpassungszahlungen basierend auf Mindestrenditen von 16 %, 13 % und 12 % für die drei Tranchen.

Positive
  • Secured up to $100M additional financing through three tranches
  • Immediate access to $25M at closing
  • Company projects reaching profitability without additional capital needs
  • Clear revenue milestone target of $100M in YUTREPIA sales by June 2026
Negative
  • High minimum return rates required (12-16%) on financing tranches
  • Payment obligations capped at 175% of borrowed amounts
  • Additional true-up payments may be required if minimum return rates aren't met
  • Financing terms extend payment obligations through 2032

Insights

Liquidia's amended agreement with HealthCare Royalty represents a significant non-dilutive capital infusion of up to $100 million structured in three strategic tranches. The immediate $25 million provides near-term operational runway, while the remaining $75 million is intelligently tied to derisking milestones: $50 million upon YUTREPIA commercialization and $25 million after achieving $100 million in sales.

This financing structure reflects both confidence in YUTREPIA's commercial potential and prudent risk management by HCRx. The payment cap at 175% of borrowed funds creates a clear ceiling on Liquidia's obligations while the graduated minimum IRR requirements (16%, 13%, and 12%) demonstrate decreasing risk premium for later tranches.

Most telling is CFO Kaseta's statement that this financing combined with YUTREPIA's launch could lead to profitability without additional capital raises. For a pre-commercial biopharma company approaching a pivotal launch moment, securing this runway removes significant financing uncertainty. The May 2025 regulatory exclusivity expiration timing aligns perfectly with commercialization plans.

Beyond the immediate YUTREPIA launch support, this capital enables Liquidia to pursue indication expansion through additional clinical trials, including pediatric studies and evaluations in WHO Group 1 and Group 3 patients. This multi-pronged development approach enhances YUTREPIA's long-term market potential while the L606 program advancement provides pipeline diversification.

MORRISVILLE, N.C., March 18, 2025 (GLOBE NEWSWIRE) -- Liquidia Corporation (NASDAQ: LQDA), a biopharmaceutical company developing innovative therapies for patients with rare cardiopulmonary disease, today announced that it has entered into a sixth amendment to its agreement with HealthCare Royalty (“HCRx”) to provide for up to an additional $100 million of financing in three tranches (the “Sixth Amendment”), subject to certain closing conditions including the funding conditions discussed below. Liquidia intends to use the proceeds to fund ongoing commercial development of YUTREPIA™ (treprostinil) inhalation powder for the potential treatment of pulmonary arterial hypertension (PAH) and pulmonary hypertension associated with interstitial lung disease (PH-ILD), continued development of YUTREPIA in other clinical trials, including but not limited to trials for pediatric patients and trials further evaluating the use of YUTREPIA in WHO Group 1 and WHO Group 3 patients, clinical development of L606 and for general corporate purposes.

Under the terms of the Sixth Amendment, Liquidia will receive $25.0 million at closing with the potential to receive two additional tranches of funding: $50.0 million upon the first commercial sale of YUTREPIA following receipt of final FDA approval for the treatment of PAH and PH-ILD, so long as no injunction has been issued prohibiting Liquidia from commercializing YUTREPIA for either or both of PAH and PH-ILD, and $25.0 million upon the mutual agreement of the parties after achieving aggregate net sales of YUTREPIA in excess of $100 million at any time on or prior to June 30, 2026.

Michael Kaseta, Liquidia’s Chief Financial Officer and Chief Operating Officer, said: “We appreciate the trust and commitment demonstrated by HCRx during the past several years. We are optimistic that the combination of the proceeds resulting from the Sixth Amendment, and a successful launch of YUTREPIA following the expiration of regulatory exclusivity in May 2025, could lead to Liquidia reaching profitability without the need for additional capital.”

Clarke Futch, Chairman and Chief Executive Officer of HCRx added: “We continue to look forward to Liquidia’s potential receipt of final FDA approval of YUTREPIA. We strongly believe in YUTREPIA’s ability to address unmet medical needs in patients with PAH and PH-ILD, and we are eager for patients to have access to a new therapeutic option that has demonstrated great clinical promise.” 

As consideration for the additional $25.0 million funded at closing, Liquidia has agreed to a fixed payment schedule that terminates in 2032. Payments on the last two tranches, when funded, would also follow a fixed payment schedule. The aggregate payments to HCRx are capped at 175% of the total amounts advanced by HCRx, but also include 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. The minimum rates of return for the three new tranches are 16%, 13% and 12%, respectively.

About Liquidia Corporation
Liquidia Corporation is a biopharmaceutical company developing innovative therapies for patients with rare cardiopulmonary disease. The company’s current focus spans the development and commercialization of products in pulmonary hypertension and other applications of its proprietary PRINT® Technology. PRINT enabled the creation of Liquidia’s lead candidate, YUTREPIA™ (treprostinil) inhalation powder, an investigational drug for the treatment of pulmonary arterial hypertension (PAH) and pulmonary hypertension associated with interstitial lung disease (PH-ILD). The company is also developing L606, an investigational sustained-release formulation of treprostinil administered twice-daily with a next-generation nebulizer, and currently markets generic Treprostinil Injection for the treatment of PAH. To learn more about Liquidia, please visit www.liquidia.com.

About HealthCare Royalty
HealthCare Royalty is a leading royalty acquisition company focused on commercial or near-commercial biopharmaceutical products. With offices in Stamford, Conn., San Francisco, Boston, London and Miami. HCRx has invested $5+ billion in over 90 biopharmaceutical products since inception. For more information, visit https://www.hcrx.com. HEALTHCARE ROYALTY® and HCRx® are registered trademarks of HealthCare Royalty Management, LLC.

Cautionary Statements Regarding Forward-Looking Statements
This press release may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release other than statements of historical facts, including statements regarding our future results of operations and financial position, our strategic and financial initiatives, our business strategy and plans and our objectives for future operations, are forward-looking statements. Such forward-looking statements, including statements regarding clinical trials, clinical studies and other clinical work (including the funding therefor, anticipated patient enrollment, safety data, study data, trial outcomes, timing or associated costs), regulatory applications and related submission contents and timelines, including the potential for final FDA approval of the NDA for YUTREPIA, which may occur after the expiration of the exclusivity period of TYVASO DPI, if at all, the timelines or outcomes related to patent litigation with United Therapeutics in the U.S. District Court for the District of Delaware, litigation with United Therapeutics and FDA in the U.S. District Court for the District of Columbia or other litigation instituted by United Therapeutics or others, including rehearings or appeals of decisions in any such proceedings, the issuance of patents by the USPTO and our ability to execute on our strategic or financial initiatives, the potential for future advances by HCRx, our anticipated use of net proceeds funded under the HCR Agreement, our estimates regarding future expenses, capital requirements and needs for additional financing, and potential revenue and profitability of YUTREPIA, if approved, involve significant risks and uncertainties and actual results could differ materially from those expressed or implied herein. The favorable decisions of courts or other tribunals are not determinative of the outcome of the appeals or rehearings of the decisions. The words “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “would,” and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives and financial needs. These forward-looking statements are subject to a number of risks discussed in our filings with the SEC, as well as a number of uncertainties and assumptions. Moreover, we operate in a very competitive and rapidly changing environment and our industry has inherent risks. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the future events discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Nothing in this press release should be regarded as a representation by any person that these goals will be achieved, and we undertake no duty to update our goals or to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact Information

Investors:
Jason Adair
Chief Business Officer
919.328.4350
Jason.adair@liquidia.com

Media:
Patrick Wallace
Director, Corporate Communications
919.328.4383
patrick.wallace@liquidia.com


FAQ

How much additional financing can Liquidia (LQDA) receive through the amended HCRx agreement?

Liquidia can receive up to $100 million in three tranches: $25M at closing, $50M upon YUTREPIA's first commercial sale after FDA approval, and $25M upon reaching $100M in YUTREPIA sales by June 2026.

What are the payment terms for Liquidia's (LQDA) new financing agreement with HCRx?

The agreement includes fixed payment schedules until 2032, with payments capped at 175% of advanced amounts and minimum return rates of 16%, 13%, and 12% for the three tranches.

When is YUTREPIA expected to launch for Liquidia (LQDA)?

YUTREPIA is expected to launch after the expiration of regulatory exclusivity in May 2025, pending final FDA approval.

What will Liquidia (LQDA) use the new financing for?

The funds will support YUTREPIA's commercial development, clinical trials including pediatric studies, L606 development, and general corporate purposes.
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