Liquidia enters Revenue Interest Financing Agreement with HealthCare Royalty

Liquidia announced that it has entered into a Revenue Interest Financing Agreement with HealthCare Royalty for a total investment amount of up to $100 million. Liquidia intends to use the proceeds from the financing to fund the potential launch of YUTREPIA inhalation powder upon final regulatory approval by the U.S. FDA, to support the continued clinical development of YUTREPIA, to provide capital for business development activities directed towards expanding Liquidia’s product pipeline and for general corporate purposes.Under the terms of the agreement, Liquidia will receive $32.5 million from HCRx at closing, with the potential to receive three additional tranches of funding: $7.5 million at Liquidia’s discretion to support any acquisition of rights to a clinical stage or commercial stage biopharmaceutical product to diagnose, prevent, or treat pulmonary hypertension; $35 million upon a favorable resolution of the ongoing patent litigation with United Therapeutics Corporation or upon earlier, mutual agreement of the parties; and $25 million to be drawn upon the mutual agreement of the parties. Upon closing, Liquidia intends to use approximately $22.3 million from the initial $32.5 million to retire the company’s existing term debt with Silicon Valley Bank.