Liquidia Corporation (NASDAQ:LQDA), the biopharmaceutical company, surged 25% to $33.47 after settling all six pending lawsuits with United Therapeutics Corporation (NASDAQ:UTHR) , ending years of patent and antitrust disputes.

The agreement removes a major source of legal uncertainty surrounding YUTREPIA, Liquidia's inhaled treprostinil treatment for pulmonary arterial hypertension, a condition involving high blood pressure in the lungs.

Liquidia will pay $380.7 million in settlement-related instalments through April 2027, but management expects to meet the obligations using cash reserves and revenue from YUTREPIA sales without raising additional funds.

The company has also agreed not to appeal a recent patent ruling and has submitted a supplemental application to remove pulmonary hypertension associated with interstitial lung disease (PH-ILD) from YUTREPIA's approved label.

The settlement, therefore, trades a prolonged legal battle for a defined payment schedule while narrowing the treatment's labelled indications.

Investors will now focus on whether YUTREPIA sales can generate enough cash to cover the settlement costs while supporting Liquidia's wider operations and commercial expansion.

The agreement represents a major shift in Liquidia's relationship with United Therapeutics, whose inhaled treprostinil treatment, Tyvaso, competes in the pulmonary hypertension market.