LQDA - Liquidia hits 2-month high after Ladenburg initiates coverage at Buy

Liquidia ( NASDAQ: LQDA ) climbed as much as 16.2% to hit a 2-month high on Friday after Ladenburg Thalmann began coverage of the stock with a Buy rating.

The brokerage set a $15 price target on LQDA, implying potential upside of 198.2% to its last close.

"We believe Yutrepia has characteristics in its favor (portability; titratability; tolerability; durability), supported by clinical development history," said analyst Matthew Kaplan.

Yutrepia, LQDA's lead asset, is a dry powder inhaler of treprostinil to treat group 1 pulmonary hypertension – pulmonary arterial hypertension.

Yutrepia got tentative FDA nod in Nov. 2021, with full approval pending expiration of the 30-month stay on Oct. 27 or resolution of a patent litigation case with United Therapeutics ( UTHR ).

A court ruled in favor of LQDA earlier this week and Ladenburg expects the written decision for the case before or soon after expiration of the 30-month stay.

"We believe Yutrepia will be able to launch, which we do not believe will infringe on UTHR's patents," said Kaplan, noting that LQDA is eyeing a launch in late 2022.

Ladenburg's rating on LQDA is in-line with SA Quant's bullish rating . Wall Street analysts on average also rated LQDA Buy (3 Strong Buy, 2 Buy and 1 Hold).

Shares of LQDA gained 6.4% YTD and more than doubled in value in the last 1 year .

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