Morgan Stanley believes attention will now turn to United’s Tyvaso PH-ILD patent

Morgan Stanley analyst Terence Flynn notes that the Federal Circuit has released its opinion affirming the PTAB ruling, thereby invalidating United Therapeutics’ (UTHR) ‘793 Patent and shares are trading down. The firm expects United to request a rehearing, but does not expect the issues in the opinion would likely result in the Federal Circuit granting such request. As the data exclusivity for United’s Tyvaso expires in March 2024, Morgan Stanley sees the FDA’s final approval action on competitor Liquidia’s (LQDA) Yutrepia after that, setting it up for a potential launch in Q2 2024. The firm believes investors’ attention will now turn to United’s Tyvaso PH-ILD patent, which is asserted in the new District Court case in Delaware. Morgan Stanley has an Overweight rating and a price target of $314 on United’s shares.