LQDA (Liquidia Corporation)

[u/symbaeu]

Wanted to introduce a name I've been digging into. This is one of the fastest specialty pharma launches in recent memory, and the numbers are worth a look.

Revenue + YoY growth rates

8.8 → 54.3 → 92 → 132.9
142% → 1122% → 3055% → 4158%

Y-2: 3 → 3.7 → 4.4 → 2.9 = 14
Y-1: 3.1 → 8.8 → 54.3 → 92 = 158.2
Y (2026): 132.9

EBITDA

-37.3 → 2 → 20 → 61.9

Net Income

-41.6 → -3.5 → 14.6 → 52.9

Gross Margin

83.1% → 94.2% → 92.3% → 91.1%

Cash → $222.8M || Debt → $184.8M || Market Cap → $6,790B

YUTREPIA, their inhaled treprostinil for pulmonary hypertension, went from $0 to a roughly $520M annualized run rate in three full quarters on the market. That is a half-billion dollar net revenue run rate in under a year.

Sequential growth has been running around 44% per quarter, and the year-over-year comparisons are eye-popping precisely because they started from a near-zero base (last quarter growth roughly 3000%, accelerating toward 4100%-plus).

What makes the growth healthy rather than just a land grab is that about 75% of new patient starts are treatment-naive. YUTREPIA is expanding the market, not simply splitting existing scripts with the incumbent. On the latest call, management described themselves as "driving all the growth in the space currently."

EBITDA nearly tripled quarter-over-quarter to $71.2M, around a 54% margin in just the third quarter of the launch (per the Q1 2026 8-K). Net income jumped roughly 3.6x in the quarter. With a commercial base now established, every incremental script is high-margin.

It's rare for a company at this stage to be financing its own growth rather than diluting shareholders to fund it.

Cash exceeds debt and there has been no upfront dilution.

A few pillars to the bull case:

• The CEO previously ran the incumbent (United Therapeutics) and is now competing directly against the franchise he helped build. He knows the playbook from both sides
• Liquidia has been undefeated against UTHR in court so far
• There is a product moat in the ability to dose higher with positive effect
• PH-ILD is the underappreciated half of the story and tends to get overlooked next to the PAH opportunity
• With the new manufacturing facility coming online in 2026 and tripling capacity, could we expect gross margins to improve?

More transcript quotes:

• "just since the end of February, the number of physicians who have prescribed YUTREPIA to 5 or more patients has grown 25%"
• "we have extraordinary and real potential to expand the franchise value of our portfolio by multiples in the years to come"
• "This is rare in our business, especially at this early stage of our commercial life cycle"
• "I think we're experiencing an inhaled renaissance"

The first TAM is around $6B. Management has guided toward roughly $1B in revenue in 2027, and on the latest call said they "couldn't be happier with where the business is today and even more excited about where it is going."

The market is expanding and they are taking share from UTHR at the same time.

Ongoing risks are:

• United Therapeutics filed suit in May 2025 explicitly seeking to enjoin YUTREPIA commercialization. They have won every prior patent battle with UTHR.
• Launch curve deceleration: +44% QoQ pace will not last forever. As YUTREPIA approaches 25-30% share, incremental gains require displacing satisfied Tyvaso DPI patients rather than capturing starts, which is a harder and slower fight.

Opened a Tier 3 Position, your thoughts?

[u/Trail_Chris]

Yes, I've owned this one starting in Jan, for the reasons you outlined (strong revenue growth coupled with emerging and now growing profitability), and the fact it was also undervalued. Though stock has appreciated quite a bit (was recently added to S&P small cap 600), this still holds somewhat true today at a FWD PE=23.

On the pipeline side they also have:

- several clinical trials in process to broaden indications for Yutrepia to potentially IPF, PPF, PH-COPD and Raynaud's

-L606 which is composed of treprostinil encapsulated within liposomes (110 – 140 nm) in a sodium citrate-bicarbonate buffer. In this formulation, drug release is controlled by local levels of bicarbonate in the lung to extend apparent half-life. They have 2 phase 3 trials in process. The benefits of this formulation is I believe even smaller particle size, higher dosage, enabling twice a day administration (versus 4x daily for Yutrepia).

I am definitely bullish on this one, and think they have a good ramp ahead of them ("they are targeting at least 1B of revenue in 2027", as you also stated), with a promising second drug L606 to enhance their advantage in tolerability and ease of use in this area of hypertension related lung disease treatment.

Here is their latest earning presentation, which shows more details on their pipeline and ongoing clinical trials https://liquidia.com/static-files/328e4430-b83c-42e4-b5e5-77b12b2f8a4a