Liquidia Corporation (LQDA): Business Model Canvas [Dec-2025 Updated]

You're digging into the mechanics of Liquidia Corporation right after their flagship product, YUTREPIA, hit the market, trying to see how the engine is actually running. Honestly, the model hinges on converting that new inhaled therapy into real cash flow-we saw $51.7 million in net product sales in Q3 2025, which is a solid start, supported by $157.5 million in cash as of September 30, 2025. But this isn't just about sales; it's a complex play balancing commercialization, advancing the next-gen L606, and funding a major patent battle. Let's break down the nine blocks that define Liquidia Corporation's strategy right now, so you can see exactly where the near-term risks and upside are hiding.

Liquidia Corporation (LQDA) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that support Liquidia Corporation's commercial and operational structure as of late 2025. These aren't just names on a slide; they represent committed capital, manufacturing capacity, and market access channels. Honestly, these partnerships are critical, especially given the recent YUTREPIA launch.

Promotion agreement with Sandoz, Inc. for Treprostinil Injection

Liquidia Corporation shares profits from the sale of Treprostinil Injection in the United States under this Promotion Agreement, which began on August 1, 2018. Revenue from this arrangement is reported as service revenue, net.

Here are the recent financial snapshots related to this specific profit-sharing stream:

Metric	Period Ended September 30, 2025	Period Ended September 30, 2024
Service Revenue, Net	$2.7 million	$4.4 million
Cost of Service Revenue	$0.9 million	$1.6 million

For the first quarter ended March 31, 2025, the service revenue was $3.1 million, an increase of $0.1 million from the $3.0 million reported for the three months ended March 31, 2024. Cost of revenue for that same Q1 period was $1.5 million for both 2025 and 2024. The decrease in service revenue in Q3 2025 reflects lower sales volumes under the agreement following the YUTREPIA commercial launch in Q2 2025.

Revenue interest financing with HealthCare Royalty Partners (HCRx)

The financing relationship with HealthCare Royalty Partners (HCRx) has been substantially upsized to support the YUTREPIA launch. Liquidia Corporation entered into a sixth amendment in March 2025 to add up to an incremental $100 million in financing tranches.

The total potential funding under the amended agreement stands at $200 million. Here's how the funding tranches break down:

• Initial closing tranche (March 2025): $25.0 million received.
• Second tranche (Received June 23, 2025): $50.0 million upon first commercial sale of YUTREPIA.
• Third tranche: $25.0 million contingent on aggregate net sales of YUTREPIA exceeding $100 million by June 30, 2026.

As of June 23, 2025, Liquidia Corporation had received a total of $175.0 million from HCRx. The repayment terms for the latest $50.0 million tranche involve fixed payments extending through 2033. The aggregate payments to HCRx are capped at 175% of the total amounts advanced. The minimum internal rate of return requirement for this specific tranche is set at 13%. The minimum rates of return for the three new tranches, if all are funded, are 16%, 13%, and 12%, respectively.

Commercial Manufacturing and Supply with Lonza Tampa LLC

Lonza Tampa LLC serves as the sole supplier for the encapsulation and packaging services for YUTREPIA™ (treprostinil) inhalation powder. The Amended and Restated Commercial Manufacturing Services and Supply Agreement is effective as of July 13, 2023, replacing an earlier contract. The initial term of this agreement is set to remain in effect until December 31, 2028.

Key operational commitments under the agreement include:

• Liquidia Corporation must provide a written forecast of expected requirements every quarter for the next 24-month period.
• The forecast for the nearest 12 months is considered a firm order.
• The Company is obligated to purchase certain minimum annual order quantities.

The agreement included a provision related to potential termination due to FDA delay; in such an event, Liquidia would reimburse Lonza for 50% of documented out-of-pocket expenditures for any capital equipment purchased by Lonza for the services, capped at $2.5 million in aggregate. Lonza may use affiliates for obligations, but remains fully responsible.

Collaboration with specialized Pulmonary Hypertension (PH) Centers

The commercial uptake of YUTREPIA following its May 23, 2025, final FDA approval demonstrates engagement with the specialized PH treatment centers and prescribers. The company tracks its reach through prescriptions and the number of supporting physicians.

Here's the latest snapshot of YUTREPIA commercial adoption as of late 2025:

Metric	As of October 30, 2025	As of August 12, 2025 (11 weeks post-launch)
Unique Patient Prescriptions	More than 2,000	Over 900
Patients Shipped To	More than 1,500	More than 550 patient starts
Prescribers Nationwide	Over 600	More than 350 physicians

The ASCENT study, which evaluated YUTREPIA in PH-ILD patients, fully enrolled 54 patients. Interim data at Week 16 showed a median improvement in six-minute walk distance of 31.5 meters for the PH-ILD cohort.

Finance: draft 13-week cash view by Friday.

Liquidia Corporation (LQDA) - Canvas Business Model: Key Activities

You're looking at the core engine driving Liquidia Corporation right now, which has clearly shifted from pure R&D to aggressive commercial execution post-FDA approval. The key activities reflect this pivot, balancing the immediate need to scale YUTREPIA sales against the long-term necessity of pipeline advancement and IP defense.

Commercialization and Sales of YUTREPIA Inhalation Powder

This is the primary focus, and the numbers from the third quarter of 2025 show a massive ramp-up. Liquidia Corporation achieved its first operating profit in Q3 2025, which is a huge milestone for a company transitioning to commercial stage. The success here is directly tied to getting YUTREPIA, which got full FDA approval on May 23, 2025, into the hands of patients quickly.

Here's the quick math on the commercial impact through the end of September 2025:

Metric	Q3 2025 Value	Comparison/Context
Net Product Sales (YUTREPIA)	$51.7 million	First full quarter of sales post-launch in June 2025
Total Revenue	$54.34 million	Represents a 1,121% increase from Q3 2024 revenue of $4.45 million
Operating Income	$1.77 million	First operating profit recorded; compared to a $29.19 million operating loss in Q3 2024
Net Loss	$3.53 million	Significant reduction from $31.0 million net loss in Q3 2024
Adjusted EBITDA (non-GAAP)	$10.14 million	Indicates strong underlying operational performance

The adoption curve is steep. As of October 30, 2025, the company reported significant real-world traction:

• More than 2,000 unique patient prescriptions received.
• Over 1,500 patient starts supported.
• Support from more than 600 prescribers nationwide.
• September 2025 marked the first month with positive net cash flow of $5 million.

This rapid commercialization required a massive reallocation of resources, which you can see in the expense structure.

Research and Development (R&D) for Pipeline Product L606

Even with the commercial launch underway, Liquidia Corporation is actively investing in its next-generation assets. The R&D spending reflects a prioritization, but L606 remains a key future driver. The company is advancing L606, which is an investigational, sustained-release formulation of treprostinil administered twice-daily, into pivotal trials.

Here's how R&D spending looked in the most recent periods:

• Q3 2025 Research and development expenses were $9.35 million, a 21% decrease from $11.89 million in Q3 2024.
• This decrease occurred as resources shifted to commercialization, though clinical expenses for L606 were a driver in earlier periods; for instance, Q1 2025 saw a $1.7 million increase in clinical expenses specifically related to the L606 program.

The plan is to initiate a global, pivotal, randomized, placebo-controlled study for PH-ILD for L606.

Manufacturing Using Proprietary PRINT® Technology

The proprietary PRINT® Technology is fundamental, as it enabled the precise, uniform drug particles used in YUTREPIA, engineered for enhanced deep-lung deposition. Scaling this capability is a critical activity for future growth.

To support this, Liquidia Corporation took concrete steps in mid-2025:

• On June 16, 2025, the company signed a lease for approximately 70,000 square feet of additional manufacturing space.
• This state-of-the-art facility is targeted for occupancy in 2026 and will house additional PRINT manufacturing lines, analytical labs, and cleanrooms.

This investment shows you they are building the internal capacity to support not just YUTREPIA's current trajectory but also future PRINT-enabled products like L606.

Managing Ongoing Patent Litigation with United Therapeutics

Defending the commercial launch against United Therapeutics Corporation (UTHR) has been a major, ongoing operational task, directly impacting Selling, General, and Administrative (SG&A) expenses. UTHR filed a complaint on May 9, 2025, alleging infringement of U.S. Patent No. 11,357,782, seeking to stop YUTREPIA sales.

The legal management activity has seen both costs and key wins:

• The '782 patent claims the same general subject matter as UTHR's previously invalidated '793 patent.
• The court recently denied UTHR's request for a preliminary injunction, allowing the commercial launch to proceed.
• Legal fees contributed to the SG&A increase; for example, Q1 2025 saw a $0.6 million increase in legal fees related to ongoing YUTREPIA litigation.
• Overall SG&A expenses nearly doubled year-over-year in Q2 2025 to $38.8 million, reflecting increased personnel and these legal costs.

You can see the financial pressure from this in the expense reports, but the operational activity of successfully defending the launch is what allowed the $51.7 million in Q3 sales to be recognized.

Finance: draft 13-week cash view by Friday.

Liquidia Corporation (LQDA) - Canvas Business Model: Key Resources

You're looking at the core assets Liquidia Corporation (LQDA) is leaning on to drive its commercial success post-launch. Honestly, for a biopharma company, the key resources are a mix of intellectual property, regulatory wins, and the cash to fund the sales engine. It's a defintely high-stakes combination right now.

The foundation of Liquidia Corporation's current value proposition rests heavily on its proprietary particle engineering platform. This technology is what allows them to create the drug particles for YUTREPIA. Here's a quick look at what that technology is engineered to do for inhaled therapies:

• Targeted delivery to the site of the disease
• Drug particles engineered for enhanced aerosolization for deep-lung deposition
• Reduced systemic exposure with the possibility of reduced adverse events
• Improved aerodynamic properties
• Enhanced stability and storage

The most tangible key resource is the FDA-approved product itself, YUTREPIA (treprostinil inhalation powder). Full approval came on May 23, 2025, allowing the company to start shipping to customers in the United States in June 2025. This regulatory clearance is the gate key to the revenue stream. The early commercial traction is already showing up in the numbers, which is what you want to see from a newly launched asset.

To support the product, Liquidia Corporation has built out a dedicated commercial sales and medical affairs field force. You can see the investment in this infrastructure reflected in the Selling, General and Administrative (SG&A) expenses, which hit $40.1 million for the three months ended September 30, 2025, up significantly from $20.2 million in the prior year quarter. That spending is directly fueling the adoption metrics we're seeing in the market. Plus, the company still maintains a solid balance sheet to keep this engine running.

Here's a table summarizing the critical financial and commercial resource metrics as of the end of the third quarter of 2025:

Key Resource Metric	Value as of September 30, 2025	Context/Period
Cash and Equivalents	$157.5 million	Balance Sheet Date
Net Product Sales (YUTREPIA)	$51.7 million	Three Months Ended September 30, 2025
Total Revenue	$54.3 million	Three Months Ended September 30, 2025
Operating Income	$1.7 million	Three Months Ended September 30, 2025 (First full quarter of sales)
Non-GAAP Adjusted EBITDA	$10.1 million	Three Months Ended September 30, 2025
SG&A Expenses	$40.1 million	Three Months Ended September 30, 2025
Unique Patient Prescriptions	More than 2,000	As of October 30, 2025
Patients Started on Therapy	More than 1,500	As of October 30, 2025
Prescribers Nationwide	Over 600	As of October 30, 2025

The proprietary PRINT® Technology is the platform, but YUTREPIA is the current commercial asset built upon it. The company is also advancing L606, another product leveraging this core technology, into pivotal trials, which represents a future key resource pipeline.

Finance: draft 13-week cash view by Friday.

Liquidia Corporation (LQDA) - Canvas Business Model: Value Propositions

You're looking at the core reasons why patients and prescribers choose Liquidia Corporation's offerings over alternatives right now. The value proposition centers on innovation in drug delivery and addressing significant unmet needs in rare cardiopulmonary diseases.

YUTREPIA: Convenient, Low-Effort, Palm-Sized Inhaled Treprostinil Delivery

The primary value driver is YUTREPIA™, the inhaled dry-powder formulation of treprostinil. This product, which received full FDA approval in May 2025 and began shipping in June 2025, offers a significant step up in convenience over older delivery methods. As of October 30, 2025, the market response shows this convenience is valued, evidenced by over 2,000 unique patient prescriptions and shipments to more than 1,500 patients, supported by over 600 prescribers nationwide.

The financial validation of this value proposition is clear in the third quarter of 2025 results, where YUTREPIA generated net product sales of $51.7 million in its first full quarter on the market. This rapid uptake helped Liquidia Corporation achieve operating profitability with $1.7 million in operating income and a positive non-GAAP adjusted EBITDA of $10.1 million for Q3 2025.

Treatment for Rare Cardiopulmonary Diseases: PAH and PH-ILD

Liquidia Corporation targets specific, underserved patient populations with its therapies. The current addressable market in the United States for Pulmonary Arterial Hypertension (PAH) is estimated to be around 45,000 diagnosed and treated patients. Furthermore, the company addresses Pulmonary Hypertension associated with Interstitial Lung Disease (PH-ILD), where a current estimate of prevalence in the United States is greater than 60,000 patients.

The value proposition here is providing an approved, modern treatment option for these serious, chronic, and progressive diseases where the goal of existing treatments is to alleviate symptoms, maintain functional class, and delay progression.

Potential for Improved Patient Tolerability and Compliance

The design of YUTREPIA aims directly at improving patient experience, which translates to better compliance. Data from the ASCENT trial, which evaluated YUTREPIA in PH-ILD patients, supports this claim. Interim data showed a median improvement in six-minute walk distance of 31.5 meters at Week 16 for patients transitioning from Tyvaso. This suggests that the new delivery method does not compromise efficacy while potentially offering a better tolerability profile than existing inhaled options.

The shift in commercial focus is also telling; Selling, general, and administrative expenses nearly doubled year-over-year to $40.1 million in Q3 2025 to support the commercialization, while Research and Development expenses decreased by 21% to $9.3 million, indicating a focus on scaling the proven value proposition.

Advancing Next-Generation, Twice-Daily Inhaled Treprostinil (L606)

The pipeline offers a future value proposition centered on further convenience and optimized dosing with L606, an investigational, sustained-release formulation of treprostinil. Liquidia Corporation is planning for a global pivotal study, RESPIRE, to initiate later in 2025, which will support indications for both PAH and PH-ILD based on agreement with the FDA for a single Phase 3 trial.

The company is allocating capital to this future development, holding $157.5 million in cash and cash equivalents as of September 30, 2025, and achieving its first month of positive net cash flow of $5 million in September 2025, which provides a foundation for this continued investment.

Here is a quick summary of the key metrics supporting these value propositions as of late 2025:

Metric Category	Product/Area	Value/Amount (as of late 2025)
Commercial Adoption (YUTREPIA)	Unique Patient Prescriptions	Over 2,000
Commercial Adoption (YUTREPIA)	Patient Starts Shipped To	More than 1,500
Financial Performance (Q3 2025)	Net Product Sales (YUTREPIA)	$51.7 million
Financial Performance (Q3 2025)	Operating Income	$1.7 million
Financial Performance (Q3 2025)	Non-GAAP Adjusted EBITDA	$10.1 million
Target Population (PAH)	Estimated US Patients Diagnosed/Treated	45,000
Clinical Efficacy (ASCENT Trial)	Median 6MWD Improvement (Week 16 vs Baseline)	31.5 meters
Pipeline Development (L606)	Pivotal Study Initiation Target	Later in 2025
Balance Sheet	Cash & Equivalents (Sept 30, 2025)	$157.5 million

The value is also seen in the operational shift:

• Research and development expenses decreased by 21% to $9.3 million in Q3 2025.
• Selling, general, and administrative expenses were $40.1 million in Q3 2025.
• Net loss significantly reduced to $3.5 million in Q3 2025 from $31.0 million in Q3 2024.

Liquidia Corporation (LQDA) - Canvas Business Model: Customer Relationships

High-touch, specialized engagement with PH prescribers is central to Liquidia Corporation's commercial strategy for YUTREPIA™.

The company's commercial field team, medical science liaisons, and reimbursement specialists support the proper conveying of scientific, medical, and healthcare economic information to healthcare professionals.

Key physician call points are located within PH centers of excellence and high prescribers of approved therapies, including cardiologists and pulmonologists and their supporting staff.

The breadth of the prescriber base grew significantly in the second half of 2025.

Metric	As of August 8, 2025	As of October 30, 2025
Unique Prescriptions Received	More than 900	More than 2,000
Patients Shipped To/Started	More than 550 patient starts	More than 1,500 patients
Prescribers Nationwide	More than 350 physicians	More than 600 prescribers

Patient support focuses on access and adherence, critical given industry-wide new-to-brand abandonment rates hitting 35% to 40% in 2025.

The initial conversion rate from prescription to treatment start for YUTREPIA was approximately 75% within the first six weeks post-launch.

Direct medical education and clinical data sharing reinforce the product profile with prescribers.

The open-label ASCENT study in PH-ILD patients fully enrolled 54 subjects by March 2025.

Interim data from the ASCENT trial, presented at the CHEST 2025 Annual Meeting and the PHPN Symposium, supported tolerability and efficacy:

• Median improvement in six-minute walk distance (6MWD) was 31.5 meters at Week 16.
• Patients titrated to a median dose of 159 mcg at Week 16.
• The mean cough score remained stable across dose escalation.

The company recorded $51.7 million in net product sales from YUTREPIA for the three months ended September 30, 2025, its first full quarter of sales.

Liquidia Corporation (LQDA) - Canvas Business Model: Channels

You're looking at how Liquidia Corporation (LQDA) gets its value proposition-the approved YUTREPIA™ (treprostinil) inhalation powder-into the hands of patients with pulmonary arterial hypertension (PAH) and pulmonary hypertension associated with interstitial lung disease (PH-ILD). The channel strategy is a focused mix of direct engagement and specialized third-party logistics.

Distribution through a network of Specialty Pharmacies

Liquidia Corporation relies on a network of specialty pharmacies to dispense YUTREPIA™. This is a critical channel for complex, high-touch medications. Competitors are known to vigorously defend their positions within these specialty pharmacy and hospital distribution channels, so Liquidia's success here is hard-fought.

The effectiveness of this channel is evident in the adoption metrics following the product's US launch in June 2025. By October 30, 2025, the company reported that YUTREPIA had shipped to more than 1,500 patients, supported by the prescriber base.

Here's a look at the early commercial traction achieved through these channels:

Metric	Value as of Late 2025	Date of Measurement
Total Unique Prescriptions Received	More than 2,000	October 30, 2025
Total Patients Shipped To	More than 1,500	October 30, 2025
Total Unique Patient Prescriptions (Earlier Data Point)	Over 900	August 8, 2025
Patient Start Conversion Rate (Initial Period)	75% of prescriptions converted to starts (first six weeks post-launch)	August 8, 2025

The company is actively managing access, as evidenced by the fact that specialty pharmacies reported over 900 unique patient prescriptions within just 11 weeks after approval. If onboarding takes 14+ days, churn risk rises.

Direct commercial sales force targeting over 600 prescribers

Liquidia Corporation employs a direct commercial sales force to drive awareness and adoption among specialists. This team is focused on reaching the physicians who treat PAH and PH-ILD patients.

The reach of this direct effort as of the third quarter of 2025 was substantial:

• Targeted prescribers nationwide: Over 600.
• Physicians prescribing YUTREPIA (Earlier Data Point): More than 350.
• Prescriber base supporting recent volume: Over 600.

This direct engagement is crucial for educating prescribers on YUTREPIA's profile, especially as they transition patients from existing therapies like Tyvaso® or oral prostacyclins. The selling, general, and administrative expenses increased to $40.1 million in Q3 2025, up from $20.2 million in Q3 2024, reflecting this investment in commercial infrastructure.

Medical conferences and peer-reviewed publications

Scientific exchange through medical conferences and publications serves as a key channel for establishing clinical credibility and disseminating real-world evidence. Liquidia Corporation actively participates in major industry events to present data on YUTREPIA and its pipeline assets like L606.

Recent, concrete examples of this channel activity in late 2025 include:

• Presentation at the 2025 UBS Global Healthcare Conference on November 10, 2025.
• Presentation at the 2025 Wells Fargo Healthcare Conference on September 3, 2025.
• Poster Presentations announced at the Pulmonary Hypertension Professional Association (PHPN) Symposium on September 11, 2025.
• Oral presentations sharing ASCENT trial data at the CHEST 2025 Annual Meeting, held October 19-22, 2025.

These presentations allow for direct engagement with key opinion leaders and specialists, reinforcing the data supporting YUTREPIA's potential to become the preferred inhaled prostacyclin. Finance: draft 13-week cash view by Friday.

Liquidia Corporation (LQDA) - Canvas Business Model: Customer Segments

You're looking at the customer base for Liquidia Corporation (LQDA) as they push YUTREPIA following its full FDA approval in May 2025. The segments are clearly defined by the rare diseases they target and the professionals who manage those patients.

The total addressable market (TAM) for the indications Liquidia targets is substantial, estimated to be between a $5B and $29B opportunity. This range is based on a patient population estimate between 18,000 and 100,000 individuals, with a Wholesale Acquisition Cost (WAC) per month of $24,000.

Adult patients with Pulmonary Arterial Hypertension (PAH)

This is one of the core patient groups for YUTREPIA. The current estimate for patients diagnosed and treated for PAH in the United States sits at approximately 45,000 individuals. Since there's no cure, the focus for this segment is on treatments that alleviate symptoms and improve functional class. The early commercial traction shows that this segment is responding, with YUTREPIA supporting over 1,500 patient starts as of late October 2025.

Adult patients with Pulmonary Hypertension associated with Interstitial Lung Disease (PH-ILD)

This segment represents a significant portion of the addressable population. The current estimate for PH-ILD prevalence in the United States is greater than 60,000 patients. Liquidia Corporation has actively worked to establish clinical evidence in this area; for instance, their ASCENT study completed enrollment of Cohort A with more than 50 patients in March 2025. The product's initial demand reflects broad uptake across both PAH and PH-ILD indications.

Here's a look at the early commercial uptake data for YUTREPIA across both indications:

Metric	Value as of Late 2025	Reporting Period Reference
Total Unique Patient Prescriptions Received	More than 2,000	As of October 30, 2025
Total Patients Shipped To	More than 1,500	As of October 30, 2025
Net Product Sales (Q3 2025)	$51.7 million	Three months ended September 30, 2025
Total Revenue (Q3 2025)	$54.3 million	Three months ended September 30, 2025

Specialist physicians: Pulmonologists and Cardiologists

These are the key prescribers who control access to the therapy. Liquidia Corporation has successfully engaged this group following the commercial launch. As of the second quarter update, more than 350 physicians across the country had already prescribed YUTREPIA. By late October 2025, this network expanded to include over 600 prescribers nationwide supporting the patient base.

The engagement with specialists is critical for driving adoption, especially given the product's profile:

• YUTREPIA is an inhaled dry-powder formulation of treprostinil.
• It offers flexibility and better tolerability compared to older methods.
• Physicians are using it for patients new to prostacyclin treatment or transitioning from other forms.

Managed care organizations and government payers

Payers determine the ultimate commercial success by establishing coverage and reimbursement. Liquidia Corporation noted in their early 2025 filings that significant uncertainty exists regarding the coverage and reimbursement status from third-party payors, including government authorities and managed care providers. Still, the early momentum is telling. The company achieved operating income of $1.7 million in the third quarter of 2025, which was the first full quarter post-launch. This suggests that despite the ongoing reimbursement hurdles, a significant volume of product is moving through the system, likely supported by patient assistance programs or favorable initial formulary placements.

The financial health supporting this commercial push as of the end of Q3 2025 included:

• Cash and cash equivalents of $157.5 million as of September 30, 2025.
• Positive non-GAAP adjusted EBITDA of $10.1 million in Q3 2025.

Finance: draft 13-week cash view by Friday.

Liquidia Corporation (LQDA) - Canvas Business Model: Cost Structure

You're looking at the cost side of Liquidia Corporation (LQDA) as they scale up YUTREPIA commercialization through late 2025. The shift from a heavy R&D focus to a sales-driven model is clearly visible in the expense structure.

High Selling, General, and Administrative (SG&A) expenses for launch are a major component now. This reflects the necessary investment to build out the commercial infrastructure supporting YUTREPIA. For the third quarter ended September 30, 2025, SG&A expenses were reported at $40.1 million. This nearly doubled the $20.2 million recorded in the same quarter last year, showing the immediate financial impact of the product launch efforts. That's a big spend to get the drug to market.

Research and Development (R&D) expenses are being managed more tightly as commercialization takes priority. In Q3 2025, R&D expenses decreased by 21% year-over-year, coming in at $9.3 million. This reallocation of resources signals a strategic pivot, though continued investment in pipeline advancement, like the L606 program, remains a cost driver.

The Cost of product sales for YUTREPIA is now a direct, measurable expense tied to revenue generation. For the three months ended September 30, 2025, the cost of product sales was $2.3 million, which was related directly to YUTREPIA sales. This is a new line item, as the company did not record any cost of product sales during 2024.

Manufacturing capacity expansion is locking in significant future fixed costs. Liquidia Technologies secured a new facility lease for approximately 70,131 rentable square feet at Pathway Triangle Building 1 in Morrisville, North Carolina. The monthly base rent is set to begin on May 1, 2026, starting at $260,069.13, with an annual increase of 3.0% thereafter. The lease term runs through November 1, 2036.

The ongoing patent litigation with United Therapeutics Corporation (UTHR) represents a substantial, though often unquantified in quarterly summaries, cost center. The company is defending against allegations of infringement related to U.S. Patent No. 11,357,782, following a complaint filed on May 9, 2025.

Here's a quick look at the key operating expense components from the third quarter of 2025:

Cost Category	Q3 2025 Amount	Context/Driver
Selling, General, and Administrative (SG&A)	$40.1 million	YUTREPIA commercialization infrastructure build-out
Research and Development (R&D)	$9.3 million	Focused R&D efforts, down 21% year-over-year
Cost of Product Sales (YUTREPIA)	$2.3 million	Direct expenses tied to the first full quarter of YUTREPIA sales
Cost of Service Revenue	$0.9 million	Decrease from $1.6 million in Q3 2024 due to commercial launch shift

The cost structure is clearly dominated by commercial execution expenses, which is expected post-launch. However, the new facility lease adds a significant long-term commitment to the fixed cost base starting in 2026.

You should review the expected run-rate for the new facility costs against the current operating income of $1.7 million achieved in Q3 2025.

The primary cost drivers for Liquidia Corporation as of late 2025 include:

• $40.1 million in SG&A for Q3 2025, reflecting commercial scale-up.
• A new facility lease commitment starting May 1, 2026, at $260,069.13 per month.
• Ongoing defense costs associated with patent litigation against United Therapeutics Corporation.
• $9.3 million in R&D spending for Q3 2025.
• $2.3 million in Cost of Product Sales for YUTREPIA in Q3 2025.

Finance: draft 13-week cash view by Friday.

Liquidia Corporation (LQDA) - Canvas Business Model: Revenue Streams

You're looking at the revenue side of Liquidia Corporation's business model as of late 2025, right after the first full quarter of YUTREPIA's commercial launch. This is where the rubber meets the road, showing how the company is generating cash to fund its operations and pipeline development. Honestly, the shift from pre-revenue to product sales has been dramatic, which is what you'd expect when a major product finally hits the market.

The primary engine for Liquidia Corporation's current revenue is the sale of its flagship product, YUTREPIA. This is the core of their current financial story, and the numbers from the third quarter of 2025 really tell that tale. It's a high-margin business once you get the scale, which is key for a specialty pharma company like this.

Here's a quick look at the key revenue components we saw reported for the three months ended September 30, 2025:

• Net product sales of YUTREPIA: $51.7 million.
• Service revenue from the Sandoz promotion agreement: $2.7 million.

The service revenue, which comes from sharing profits on the sale of Treprostinil Injection with Sandoz, Inc., actually decreased to $2.7 million for the quarter, compared to $4.4 million in the same period last year. This drop was primarily attributed to lower sales volumes for that specific product in the current quarter, which makes sense as the focus shifts heavily to the newly launched YUTREPIA.

Beyond the immediate sales, Liquidia Corporation has also secured significant, non-dilutive funding tied to commercial success, which acts as a near-term revenue stream. You should definitely note the financing event from the second quarter of 2025, which was triggered by the first commercial sales of YUTREPIA. This is capital infusion, not traditional sales, but it's cash flowing into the business based on product performance.

Here's the quick math on that financing event:

Financing Event Source	Tranche/Milestone Achieved	Amount Received (Q2 2025)	Trigger/Context
HCRx (HealthCare Royalty)	Second Tranche Funding	$50.0 million	First commercial sale of YUTREPIA and denial of preliminary injunction

What this estimate hides is the contingent nature of future funding. Liquidia Corporation has the potential for further capital under the amended HCRx agreement, which is tied to future sales performance. This is a critical, albeit less direct, revenue stream to monitor.

Looking at the pipeline, future milestones and royalties are definitely part of the long-term plan, even if the dollar amounts aren't public yet. The company is advancing L606, an investigational sustained-release formulation. The HCRx agreement itself provides a concrete example of a future milestone-based revenue event:

• Potential for an additional $25.0 million tranche from HCRx if aggregate net sales of YUTREPIA exceed $100.0 million on or prior to June 30, 2026.

This structure means that successful market penetration of YUTREPIA directly unlocks future non-dilutive capital, which is a smart way to finance late-stage development and commercial scale-up. If onboarding takes 14+ days, churn risk rises, which could delay hitting that $100 million sales threshold for the next funding tranche.