Liquidia (LQDA) Q2 FY26 earnings call: guidance and Q&A

What efficacy signal is needed in the RE-WARM Raynaud's study for a registrational trial, and how does L606's exposure/tolerability translate to clinical advantage compared to other long-acting inhaled treprostinil approaches?

The RE-WARM study will evaluate YUTREPIA's tolerability and clinical response in Raynaud's, informing Phase III design. For L606, management emphasized that tolerability drives dose, which drives efficacy and durability. They provided a detailed comparison of L606's dose attainment versus TPIP, highlighting L606's favorable profile in achieving higher breath equivalents.

“But I think if you believe the paradigm that tolerability drives dose, then what you can see with L606 is that we've already shown a favorable profile vis-a-vis TPIP and the rest will sort itself out because as you achieve dose, you will get effect and as you achieve effect, you will get durability.”

asked by Amy Li · answered by Roger Jeffs

How will the expanded sales force balance existing prescriber relationships vs. new prescriber expansion? What is the status of payer coverage? What are the expected outcomes and timing for the 327 trial?

The expanded sales force will pursue both deepening existing relationships and expanding into the community, targeting PAH and PH-ILD centers. Payer coverage is considered very good and at parity. For the 327 trial, outcomes range from winning all claims to a royalty or adjunctive relief; a decision is expected 'any day now' but timing is uncertain.

“So when you look at PAH centers, we still feel like we have an amazing amount of opportunity there to get in front of the oral prostacyclins and the inhaled prostacyclins to be the first PAH prostacyclin of choice. In the PH-ILD centers, there's both opportunity to get in front of the other inhaled prostacyclins and also patient identification.”

asked by Julian Harrison · answered by Scott Moomaw

How should the growth trend for new patient adds continue for the remainder of the year and long-term?

The company expects to maintain the linear trajectory of referrals and new patient starts observed since launch, supported by the expanded sales force and patient support services. They are confident in achieving over $1 billion in sales by 2027.

“What we've seen since launch is really a linear trajectory of referrals and new patient starts really since the beginning of the launch last June. So we're very confident in what we're doing, as Scott had spoken earlier, increasing our -- the size of our sales force, looking to increase our patient support services.”

asked by Ben Burnett · answered by Michael Kaseta

Where is the biggest script growth coming from in PAH and PH-ILD? How have findings on pharmacists' roles in patient transitions influenced commercial strategy?

Short-term growth is from existing centers, with a 'flywheel' effect of prescribers trying and recommending YUTREPIA. Longer-term growth is expected from community patients, especially in PH-ILD. Pharmacists are critical in the care team; the company focuses on educating them about YUTREPIA's benefits, ease of use, and titratability, recognizing their role in coordinating care and managing side effects.

“So I think the flywheel of YUTREPIA is turning only more strongly as time goes along and more prescribers get a chance to try it. And so we have many examples of when one prescriber who's tried it and really found it to be satisfying has talked to better -- has talked to another prescriber and said, "Look, it's not the same. You really need to try this.”

asked by Ryan Deschner · answered by Scott Moomaw

Is growth primarily from category expansion or switches? Are IPF patients expanding the pie? What are the right ways to think about patient adherence?

Growth is from both category expansion and switches, with YUTREPIA gaining share from other inhaled, oral, and parenteral prostacyclins. IPF is not yet expanding the market, but there's future interest. Adherence is expected to be best-in-class due to YUTREPIA's tolerability, with discontinuations primarily due to intolerance in the first 1-3 months or patient comorbidities, not AEs at the rate of competitors.

“So the only growth that you're seeing is in the inhaled category. And the only reason for that growth is YUTREPIA launch. So what we're starting to do is broadly take share, not only from the competitive inhaled brand, but also from oral and parenteral as people figure out that, again, this paradigm of tolerability is key and the linchpin to success for these patients.”

asked by Jason Gerberry · answered by Roger Jeffs