Liquidia Stock Rose
What has happened
LQDA Stock : One of the most volatile healthcare stocks in the past few days, Liquidia Technologies ( LQDA -1.26 percent), had quite the positive period on the Friday. The share price of investors jumped of the drug company by nearly 21% after a string of modest but a boost to confidence-building insider purchases.
What’s the question?
Liquidia is a volatile share due to developments in the realm of law including the patent infringement case it was involved in against United Therapeutics, the defendant. United Therapeutics ( UTHR 1.59 percent). On Monday the 13th of January, a district court in Delaware ruling against United and found that Liquidia violated one of two patents at issue in connection with Yutrepia generic name of an inhalation drug used to treat the condition known as pulmonary arterial hypertension (PAH).
Each United and Liquidia declared victory in the contest in the event that Liquidia wasn’t found to violate the patents of both companies.
In spite of this the decision is a clear negative for Liquidia since it’s possible to be issued by the courts an injunction that will stop from the Food and Drug Administration (FDA) from giving Yutrepia an approval final. The drug was approved tentatively at the end of November in 2021.
After the market closed on Thursday, top executives at Liquidia delivered a powerful message to investors that they are confident in the efforts of their company.
A set of regulatory filings reveals 5 of biotech’s executives , including chief executive officer Roger Jeffs and chief financial officer Mike Kaseta — purchased the shares just two days after the ruling given. All buyers purchased quantities within a narrow interval of 1,918 shares up to 2,166 shares.
Liquidia Returns vs. S&P
| 1 YEAR | 5 YEAR | 5 YEAR ANNUALIZED | SINCE IPO | |
|---|---|---|---|---|
| LQDA | +17.08% | -36% | ||
| S&P | -7.62% | +49.76% | +8.40% | +46% |
Assets
QUARTERLYANNUAL
| Q3 2022 | YOY CHANGE | |
|---|---|---|
| Net Cash | $98.32M | +53.5% |
| Accounts Receivable | $3.14M | +2.8% |
| Inventory | 0 | – |
Liabilities
QUARTERLYANNUAL
| Q3 2022 | YOY CHANGE | |
|---|---|---|
| Long Term Debt | $23.51M | +54.7% |
| Short Term Debt | $1.10M | +2.3% |
Ratios
QUARTERLYANNUAL
| Q3 2022 | YOY CHANGE | |
|---|---|---|
| Return On Assets | -39.5% | -3.2% |
| Return On Invested Capital | -53.2% | +629.5% |
Cash Flow
QUARTERLYANNUAL
| Q3 2022 | YOY CHANGE | |
|---|---|---|
| Free Cash Flow | -$5.67M | +0.2% |
| Operating Free Cash Flow | -$5.58M | -1.5% |
Valuation
QUARTERLYANNUAL
| Q4 2021 | Q1 2022 | Q2 2022 | Q3 2022 | YOY CHANGE | |
|---|---|---|---|---|---|
| Price to Earnings | – | – | – | – | – |
| Price to Book | 2.88 | 2.88 | 4.18 | 3.43 | +114.8% |
| Price to Sales | 19.81 | 28.41 | 19.64 | 25.43 | +83.6% |
| Price to Tangible Book Value | 2.88 | 2.88 | 4.89 | 3.72 | +132.9% |
| Price to Free Cash Flow TTM | – | – | – | – | – |
| Enterprise Value to EBITDA | -20.45 | -25.65 | -24.32 | -36.20 | +106.4% |
| Free Cash Flow Yield | – | – | – | – | – |
| Return on Equity | -50.7% | -69.9% | -48.8% | -54.8% | -3.1% |
