Liquidia (NASDAQ:LQDA) shareholders are a happy bunch, and there are good reasons for that. It’s worth noting that this biopharmaceutical company’s stock price has increased about 78% in the past three months.
Positive developments, including the favorable court ruling in the ongoing patent dispute with United Therapeutics (UTHR), and the U.S. FDA’s (Food and Drug Administration) tentative approval for its Yutrepia (treprostinil) inhalation powder (used for pulmonary arterial hypertension or PAH treatment), provided a significant boost to this penny stock.
What’s Next?
Liquidia highlighted that the addressable market for inhaled treprostinil is large and will likely expand in the future, which augurs well for its growth.
However, could Liquidia emerge as one of the top penny stocks for 2022? The answer to that is not simple as a lot would depend on final FDA approval, which Liquidia expects could occur in October 2022 or earlier depending upon the resolution of the ongoing litigation.
Liquidia stated that due to the lawsuit filed by United Therapeutics for patent infringements, the FDA cannot grant final approval until the expiration of the regulatory stay (i.e., on October 27, 2022).
In response to the FDA’s tentative approval, Andrew Fein of H.C. Wainwright stated, “We continue to foresee Yutrepia not being clear to enter the market for the treatment of PAH patients prior to October 2022.”
Fein added, “As Yutrepia can prospectively enter the PAH market, we ultimately believe up-titration of inhaled dry powder therapy presents upside with regard to the potential for greater usage and an expanded dose range driven by observed patient benefit.”
Fein has a Buy rating on LQDA with a price target of $6.
Wall Street’s Take
Wall Street is upbeat about Liquidia’s prospects. On TipRanks, Liquidia has received a Strong Buy consensus rating based on 3 Buys and 1 Hold. Further, the average Liquidia price target of $6.75 indicates 35.5% upside potential to current levels.
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Disclosure: On the date of publication, Amit Singh had no position in any of the companies discussed in this article.
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