What is the total financial value UT will receive under the Liquidia settlement?

Liquidia will pay UT an aggregate of $330.4 million, consisting of $185 million for estimated damages on past Yutrepia sales for PH-ILD, payable within 30 business days of the Settlement Agreement, and $145.4 million for continuing PH-ILD sales, payable in two equal installments of $72.7 million on or before February 1, 2027 and April 30, 2027 (the agreement text states January 31, 2027, with a next-business-day adjustment).

Does UT have to pay anything under the settlement?

Yes. UT will pay Liquidia $10.0 million within 30 business days of the Settlement Agreement to resolve the Sandoz and RareGen litigation, in which Liquidia has agreed to obtain any necessary third-party consents, including from Sandoz, to secure dismissal.

What happens to Yutrepia's PH-ILD indication?

Liquidia must immediately file with the FDA to amend the Yutrepia label to remove PH-ILD. Until FDA approval, it may sell Yutrepia under its current label but must stop PH-ILD marketing and promotion. Upon FDA approval of the amendment, Liquidia must immediately cease all sales of Yutrepia bearing the PH-ILD indication.

Does the settlement end all litigation between the companies?

The parties agreed to seek dismissal with prejudice of the covered actions within ten days after UT receives the $185 million payment. UT may continue its trade secrets claims against former Liquidia executive Dr. Robert Roscigno individually, and the releases and dismissals are subject to conditions including the FDA label change and the officer's declaration.

How long do the settlement's restrictions last?

The agreement expires on the later of the expiration of the last UT patent with a valid PH-ILD claim and the expiration of the last valid claim of the applicable Liquidia patents, unless terminated earlier. Certain labeling, promotional and patent-challenge obligations expire at the earlier of the end of the term and the expiration of the last applicable UT PH-ILD patent.

UTHR 8-K SEC Disclosure

01—Abstract

Summary

Summary of the 8-K filed October 14, 2026. Cited figures are marked; the original filing is the authoritative source.

United Therapeutics Corporation (UT) entered into a Settlement Agreement dated October 13, 2026 with Liquidia Technologies, Inc. (Liquidia) to resolve multiple pending patent and trade secret litigations between the parties.

Under the agreement, Liquidia will pay UT an aggregate of $330.4 million^a: $185 million as an estimate of damages for past sales of Yutrepia for PH-ILD, due within 30 business days, and $145.4 million for continuing PH-ILD sales, payable in two equal installments of $72.7 million on or before January 31, 2027 and April 30, 2027. UT will pay Liquidia $10.0 million to resolve a related case brought by Sandoz and RareGen. The parties agreed to seek dismissal with prejudice of the covered actions, with UT retaining its trade secret claims against former Liquidia executive Dr. Robert Roscigno.

Liquidia must file with the FDA to remove the PH-ILD indication from Yutrepia's labeling and must cease PH-ILD marketing immediately, with sales of PH-ILD-indicated product ceasing upon FDA approval of the label amendment. Liquidia also agreed to new promotional restrictions, patient-referral certification requirements, termination of PH-ILD cohorts in its ASCENT trial, and covenants not to sue and not to challenge certain UT patents. Releases take effect only after UT receives the $185 million^b payment, receives an officer's declaration that Liquidia has ceased marketing the PH-ILD-indicated product, and the cases are dismissed.

Separately, the filing describes an October 7, 2026 Third Circuit decision in the RareGen/Sandoz antitrust and contract litigation. The court affirmed summary judgment for UT on the antitrust and state unfair competition claims, but reversed the summary judgment on the Sandoz breach of contract claim, vacated the prior $61.6 million^c damages award, and remanded the contract and tortious interference claims for further proceedings. The settlement resolves all claims in that litigation.

02—Key points

Key Highlights

Liquidia agreed to pay UT an aggregate of $330.4 million: $185 million for past PH-ILD sales (due within 30 business days) and $145.4 million for continuing PH-ILD sales, in two $72.7 million installments due January 31, 2027 and April 30, 2027.
The settlement resolves the pending UT v. Liquidia patent cases (’327 and ’782 patents), Liquidia v. UT case (’494 patent), and the trade secrets litigation, with dismissals with prejudice to be sought within ten days after UT receives the $185 million payment.
Liquidia must file to remove the PH-ILD indication from Yutrepia's label and cease all sales of PH-ILD-indicated product upon FDA approval of the amendment; in the interim it must halt PH-ILD marketing and promotion immediately.
Liquidia must restrict promotion to practitioners treating PAH, require a Group 1 PAH certification on referral forms and vouchers, send letters to practitioners, payers and pharmacies, and terminate PH-ILD cohorts of its ASCENT trial.
UT agreed to pay Liquidia $10.0 million to resolve the RareGen/Sandoz litigation, which the filing says follows an October 7, 2026 Third Circuit decision that vacated the prior $61.6 million Sandoz damages award and remanded the breach of contract and tortious interference claims.
Releases become effective only after UT receives the $185 million payment, receives a Liquidia officer's declaration of cessation of PH-ILD sales, and the covered cases are dismissed; the Roscigno trade secrets claims are excluded and continue.

03—Questions

Frequently Asked Questions

What is the total financial value UT will receive under the Liquidia settlement?
Liquidia will pay UT an aggregate of $330.4 million, consisting of $185 million for estimated damages on past Yutrepia sales for PH-ILD, payable within 30 business days of the Settlement Agreement, and $145.4 million for continuing PH-ILD sales, payable in two equal installments of $72.7 million on or before February 1, 2027 and April 30, 2027 (the agreement text states January 31, 2027, with a next-business-day adjustment).
Does UT have to pay anything under the settlement?
Yes. UT will pay Liquidia $10.0 million within 30 business days of the Settlement Agreement to resolve the Sandoz and RareGen litigation, in which Liquidia has agreed to obtain any necessary third-party consents, including from Sandoz, to secure dismissal.
What happens to Yutrepia's PH-ILD indication?
Liquidia must immediately file with the FDA to amend the Yutrepia label to remove PH-ILD. Until FDA approval, it may sell Yutrepia under its current label but must stop PH-ILD marketing and promotion. Upon FDA approval of the amendment, Liquidia must immediately cease all sales of Yutrepia bearing the PH-ILD indication.
Does the settlement end all litigation between the companies?
The parties agreed to seek dismissal with prejudice of the covered actions within ten days after UT receives the $185 million payment. UT may continue its trade secrets claims against former Liquidia executive Dr. Robert Roscigno individually, and the releases and dismissals are subject to conditions including the FDA label change and the officer's declaration.
How long do the settlement's restrictions last?
The agreement expires on the later of the expiration of the last UT patent with a valid PH-ILD claim and the expiration of the last valid claim of the applicable Liquidia patents, unless terminated earlier. Certain labeling, promotional and patent-challenge obligations expire at the earlier of the end of the term and the expiration of the last applicable UT PH-ILD patent.

04—Continue

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