Liquidia: Needham Raises PT to $36 from $32, Maintains Buy Rating

Liquidia: Needham Raises PT to $36 from $32, Maintains Buy Rating

Needham Securities has upgraded its price target for Liquidia Corporation (LQDA) to $36 from $32, while maintaining its "Buy" rating for the stock [1]. The upgrade reflects the analyst's optimism about Liquidia's YUTREPIA launch and the company's strong financial position.

Liquidia's Q2 2025 earnings call highlighted the robust launch of YUTREPIA, with over 900 unique patient prescriptions and more than 550 patient starts within the first 11 weeks [1]. The company has achieved a 75% script-to-start conversion rate, indicating strong market acceptance and effective patient support services. Additionally, Liquidia closed the quarter with over $173 million in cash and cash equivalents, providing a solid financial position to support future growth [1].

The company has signed contracts with major commercial payers, which is expected to improve market access and remove new-to-market blocks, potentially accelerating growth in the coming quarters [1]. However, Liquidia still faces customary new-to-market blocks and non-formulary positioning challenges that could impact growth [1].

Needham analysts noted that YUTREPIA's differentiated product profile, including ease of use and tolerability, has been well-received by both physicians and patients, leading to rapid adoption [1]. The company's proprietary PRINT® technology delivers a dry-powder formulation through a low-effort device, addressing key limitations of existing therapies like United Therapeutics' Tyvaso [2].

Despite the strong launch, there are still uncertainties regarding the outcome of ongoing patent litigation, which could impact future market dynamics [1]. The company faces competition from existing products like Tyvaso, and there is a need to continuously improve payer engagement and coverage to maintain growth momentum [1].

Needham's upgrade to a $36 price target reflects the analyst's belief in Liquidia's ability to navigate these challenges and capitalize on the growing market for pulmonary arterial hypertension (PAH) and pulmonary hypertension associated with interstitial lung disease (PH-ILD) [2]. The company's focus on rare diseases and high pricing power positions it well to capture a significant share of this $2 billion market.

References:

[1] https://www.gurufocus.com/news/3057716/liquidia-corp-lqda-q2-2025-earnings-call-highlights-strong-yutrepia-launch-and-financial-position

[2] https://www.ainvest.com/news/liquidia-lqda-navigating-legal-uncertainty-yutrepia-launch-unlock-hidden-2508/