What happened
Liquidia Technologies (LQDA 0.47%) stock went on quite a ride during Thursday's trading session. On the back of a new analyst take on the company, its shares climbed almost 22% higher in early action before settling down to a gain of slightly over 10% on the day.
So what
Bank of America Securities was the entity behind the analysis. The bank's Greg Harrison initiated coverage on Liquidia Thursday morning with a buy recommendation at a price target of $12 per share. That's more than three times the level at which the stock closed on Wednesday.
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The content of Harrison's research note wasn't immediately available. We can say that it represents something of a contrarian view, though, as Liquidia hasn't been the most popular stock lately.
At the beginning of this week, the biotech took quite a hit when peer United Therapeutics (UTHR 1.48%) announced it had received Food and Drug Administration (FDA) approval for its pulmonary arterial hypertension (PAH) drug Tyvaso DPI. Liquidia also has a PAH drug, Yutrepia. However, this has received only tentative FDA approval and, due to a pending legal dispute with United Therapeutics, cannot yet be marketed in this country.
NASDAQ: LQDA
Key Data Points
Now what
PAH treatments are certainly worth fighting over. Liquidia CEO Roger Jeffs has said that the company's potential addressable market for Yutrepia could top $1 billion. The company clearly expects its drug to hit the market before long. Last month, it raised $50 million in a secondary stock issue to help fund commercialization efforts.
