What happened

Shares of Liquidia Technologies (LQDA -0.73%), a biopharmaceutical company specializing in treatment of pulmonary arterial hypertension and other uses of its PRINT (Particle Replication In Non-Wetting Templates) technology, rose 18.4% on Monday. The stock closed at $7.30 on Friday, then rose to a high of $8.64 on Monday before falling to $8.39 at Monday's close. The stock has a 52-week low of $2.40 with a high of $8.79. Liquidia's shares are up more than 72% so far this year.

So what

Several analysts reiterated buy ratings on the stock, sending it nearly to another new 52-week high after it hit $8.79 on Friday. The company has had no news since its second-quarter earnings report was released after the market closed on Thursday.

It wasn't the financials that lifted Liquidia stock, but other comments made in the release. Liquidia reported a loss of $9.4 million, or $0.15 in earnings per share (EPS), up from its $6.5 million loss and an EPS loss of $0.13 in the same quarter in 2021. Revenue was up only slightly, to $3.9 million, compared to $3.4 million in the second quarter of 2021.

What spiked the stock was the company's strong hints that it expects to prevail in its patent lawsuit with United Therapeutics Corporation (UTHR -1.40%) regarding Liquidia's Yutrepia (treprostinil) inhalation powder, used in a palm-sized device, to treat pulmonary arterial hypertension. United is claiming that Liquidia's therapy infringes on patents from United's Tyvaso (treprostinil) inhalation solution and Tyvaso inhalation powder.

Liquidia CEO Roger Jeffs said in the release:

We continue to work toward the goal of launching Yutrepia (treprostinil) inhalation powder as soon as possible upon resolution of the Hatch-Waxman litigation. It is encouraging to see the momentum and excitement building within the Company, between securing key wins on the legal front and bringing in new hires to help us achieve our near-term and long-term goals. We look forward to launching the next chapter in the Company's evolution pending the final approval of Yutrepia.

Now what

The court's decision is expected to come before the 30-day regulatory stay ends on Yutrepia's New Drug Application (NDA) on Oct. 27. In the meantime, investors are reading the tea leaves to see which way the judge will rule for the pharmaceutical stock. A favorable decision would likely send the stock rising even higher. It's easy to see why Liquidia is confident as the Patent Trial and Appeal Board found all the claims of one of the patents that United is fighting to protect were unpatentable. However, the PTAB's decision has no direct bearing on the court's decision.