Liquidia Corporation Q3 FY2025 earnings call

• Roger Jeffs highlighted YUTREPIA's success with over 2,000 unique prescriptions, 1,500 patients initiated, and 600+ prescribers in the U.S. by October 30. The referral-to-start ratio was around 85%.
• Michael Kaseta noted the third quarter was a breakthrough both operationally and financially, with $51.7M in net product sales, positive adjusted EBITDA of $10.1M, cash on hand of $157.5M, and September marked the first month of positive net cash flow.
• Scott Moomaw emphasized continuing to increase breadth by driving awareness and new prescribers, and depth by working with current prescribers.
• Rajeev Saggar discussed TETON-2 data suggesting inhaled treprostinil may slow FVC decline in IPF patients and highlighted the importance of dose in treatment.

In the third quarter of 2025, Liquidia achieved $51.7 million in net product sales of YUTREPIA. The company recorded a net loss of $3.6 million, but on a non-GAAP basis, adjusted EBITDA was $10.1 million in the first full quarter of YUTREPIA sales. PAH has accounted for a majority of total prescriptions, with PH-ILD usage growing steadily. Approximately 3 out of 4 patients starting YUTREPIA are new to treprostinil, while about 1 in 4 are transitioning from other prostacyclin therapies, with around 25% of switches from Tyvaso products and ~10% from oral therapies.

• Expect the positive cash flow trend to extend into 2026 while focusing on driving profitability and reinvesting in R&D to support sustained long-term growth.
• Intend to translate early commercial success into long-term sustainable growth by broadening YUTREPIA's clinical utility through niche studies and advancing next-generation product L606.

• Litigation with United Therapeutics, where potential outcomes range from YUTREPIA being removed from the market to a royalty, depending on the judge's decision.

Q: Based on back-of-the-envelope math, uptake of YUTREPIA is doubling Tyvaso's launch, what's driving uptake and breakdown between PAH and PH-ILD?

A: Roger Jeffs and Scott Moomaw mentioned strong demand driven by YUTREPIA's product profile, growing opportunity, PAH being majority and PH-ILD growing steadily.

Q: What percentage of revenues are associated with contracted versus noncontracted reimbursement, and status of being on formularies?

A: Michael Kaseta stated they have signed contracts with 3 major commercial payers, new-to-market blocks are being removed, and in commercial, they have started receiving rebates but no contracting in Medicare Part D yet.

Q: Of 1,500 patients on YUTREPIA, how many were in 28-day voucher period and average time from prescription to shipment?

A: Michael Kaseta said slightly over 50% of new patients were using the voucher program, and average time from prescription written to shipment is within a few weeks.

Q: Trend of channel loading and naive versus treprostinil experienced patients?

A: Michael Kaseta said they have settled into normal inventory levels with SPs holding 3-4 weeks of inventory, and about 75% are naive to treprostinil, 25% transitioning.

Q: Update on payer coverage and plans for YUTREPIA in IPF and PPF?

A: Michael Kaseta said they have signed commercial contracts with 3 largest payers and new-to-market blocks are being removed; Rajeev Saggar discussed TETON-2 data and interest in evaluating YUTREPIA's use in IPF and PPF.

Q: Timing and potential ramifications of litigation?

A: Rusty Schundler said judge's decision timing is uncertain, with possible outcomes including market removal or royalty, dependent on judge's ruling.

Q: Litigation timing and potential outcomes?

A: Rusty Schundler said judge's decision timing is uncertain, with wide range of potential outcomes depending on judge's ruling.