Liquidia Corporation Q4 FY2025 earnings call

• 2025 showed rapid establishment of preferred product profile, launch, scale, and profitability within 120 days. Eutropia's product profile benefits led to it being a top specialty drug launch. • Momentum carried into 2026 with over 3,600 unique patient referrals and over 2,900 patients shipped therapy. Increased prescribers to ~860. • 2026 begins full clinical exploration with initiation of multiple new studies, including those transitioning patients from oral and inhaled prostacyclines, studying new combinations, and expanding into additional disease areas like systemic sclerosis-associated Raynaud's phenomenon and PHCOPD. • Next generation L606 pivotal study initiated in multiple territories with enrollment expected in following quarters. • Financial results reflect sustained patient growth and retention, with revenue, margin contribution, and cash generation increasing over the last nine months.

Eutrekia generated $148.3 million in net product sales in 2025, with $90.1 million in the fourth quarter, representing 74% growth over the third quarter. Fourth quarter also had non-GAAP adjusted EBITDA of $27.3 million and net income of $14.6 million. Revenue share from inhaled tripostal increased from 10% in Q3 to 17% in Q4. Prescribers increased to around 860, with ~25% of physicians referring five or more patients. New patient prescriptions roughly equal between PAH and PHILD, with patient starts 75% naive to 25% transitions from other prostacyclines.

• Confident in 2026 and years ahead, focusing on building a durable franchise with increasing patient preference and clear path to at least a billion-dollar franchise in 2027 with increasing growth beyond. • Believes share of revenue will continue to increase, with opportunities in PAH oral market and enhanced PHILD market. • Financial results show cash generating growth engine, with $190.7 million in cash and cash equivalents at year end and $33 million positive cash flow in fourth quarter alone.

Q: Given the greater than 2,900 patients starts, where do you think this puts you in terms of current market share and how are you thinking about continued growth in the first half of 2026?

A: Hard to give accurate percent market share from patient number standpoint as competitors don't disclose numbers. Analyzed based on revenue, inhaled tripostal revenue for Q4 was ~$550 million, had 80% increase quarter over quarter, accounting for more than 100% of market growth in Q4, revenue share increased from 10% in Q3 to 17% in Q4. Seeing continued momentum in first two-thirds of Q1 2026 and bullish on continued successful launch.

Q: With new outcome data from a competitor, what's your take on the potential impact on the eutropia launch?

A: Competitor's new outcome data on oral prostacyclin receptor agonist has no impact. Their results are similar to Updravi, with muted effect on symptomatology and high GI side effects. Eutropia's launch trajectory and success are in presence of UpTravie, and not concerned about impact.

Q: Can you help us better understand the differentiation potentially of eutrepia and maybe L606 as well relative to a soft mist inhaler? And regarding the PAH versus PHLD split of patients on eutrepia, should we still be thinking about that on approximately a three-to-one basis? How do you see that maybe evolving over time?

A: Eutrepia's differentiation is due to print formulation of engineered particles in lower end of respirable range, dosing flexibility, and no exacerbation of cough in PHLT patients. Now at pretty equal split between PAH and PHILD, with more white space opportunity in PHILD. Growing sales force significantly by a third to penetrate PHILD market more, and PAH has oral and parenteral opportunities. Over time, PHILD likely to be bigger but both have growth opportunities.

Q: When we look at your path to the $1 billion revenue target in 2027, is that the right way to think about the trajectory and what gives you confidence in maintaining current pace? How much visibility do you have into the patient funnel and where are the patients coming from?

A: Start with inhale to profit market already a $2 billion market, share increasing quarter over quarter. PAH has $2 billion oral opportunity to gain share, and just scratching the surface in PHILD with enhanced sales force. Confident due to sustained patient growth, retention, and execution. Visibility into patient funnel from new patient starts and transitions, with 75% naive to 25% transitions.

Q: Any new updates or developments on the legal front? And regarding payer access, how does the 85% prescription to patient start conversion vary across Medicare and commercial segment, and will additional payers need to come online over the remainder of 2026?

A: Legal front: oral hearing in June, post-trial briefings in August, remain confident in arguments and prepared for any outcome. Payer access: 85% plus pull-through from launch, goal to improve it, and no change seen in coming, continue to work on pull-through to ensure patients have choice.

Q: Any color on launch dynamics into the first quarter, inventory, stocking trends, or refill rate? And on the systemic sclerosis RP program, can you walk us through the evidence in support and path forward?

A: January and February had strong new patient starts and referrals, staying on same trajectory as Q4. Inventory and stocking normalized nine months in, demand extremely strong. Systemic sclerosis RP: systemic sclerosis patients have Raynaud's phenomenon, prostacyclin class used in salvage therapies for digital ulcers. Oral truprocinol had tolerability issues, eutrepia has improved tolerability and can dose to high level. Plan to initiate Phase IIa program near end of year.

Q: View on role for inhaled trypospinol in PAH setting and perspective on oral versus inhaled prostacyclines in PAH. And perspective on fourth quarter numbers and gross to net adjustment in 2026?

A: Paradigm shifting to patients not willing to accept off-target effects. Orals have significant GI toxicities and minimal symptomatic benefit. Eutropia provides better benefit-to-risk profile. Fourth quarter dynamics: new-to-market blocks removed, will pay more rebates but offset by more patient access, small incremental increase in growth to net expected but still confident in trajectory to billion-dollar product in 2027.

Q: Color on one in four prostacyclin transition patients and what bucket of prostacyclin therapy they are coming from. And description of new exploratory eutropia trials and their label enhancing potential?

A: 25% transitions: 30% from orals in PAH, rest from inhaled, and starting to see more transitions from perineurals. New exploratory trials: transitioning patients from oral prosonoid to eutropia, studying combinations like with cetatocept, switching studies from Celexapeg to Eutropia, highlighting hemodynamic capacity. Trials are label enhancing as data can be presented to agency for label discussions