Liquidia Appears Undervalued Even in the Case of a Negative Decision – BofA
2022.08.30 22:54
Liquidia (LQDA) Appears Undervalued Even in the Case of a Negative Decision – BofA
By Sam Boughedda
Liquidia Technologies Inc (NASDAQ:LQDA) shares have tumbled Tuesday, down 27% at the time of writing, after a decision from the U.S. District Court denying its request to stay a decision on the ‘793 patent.
Following the decision, a BofA analyst explained that Liquidia and United Therapeutics (NASDAQ:UTHR) are awaiting a decision on the Hatch-Waxman (H-W) case determining infringement of United’s ‘066 and ‘793 patents on treprostinil. “After Liquidia’s recent IPR win invalidating the ‘793 patent, Liquidia requested a stay in the H-W decision pending an anticipated appeal of the IPR decision,” wrote the analyst.
The analyst, who reiterated a Buy rating and $14 price target on the stock, believes that while it is a negative headline, they don’t view the stay denial as a “material setback” for the company, as the ‘793 patent has “already been invalidated in the IPR proceeding and that the H-W decision is expected later this year.”
“We would further argue that even in the case of a negative decision on ‘793 the stock appears undervalued to us as IPR decisions are rarely overturned, which would still allow for a Yutrepia launch in 2024,” the analyst added. “Of course, this also hinges on the ‘066 decision in the H-W case, which is not impacted by today’s decision.”
