What happened
One of the more volatile healthcare stocks of recent days, Liquidia Technologies (LQDA -1.75%), had quite the up session on Friday. Investors lifted the share price of the drug developer by almost 21%, following a series of relatively small but confidence-boosting insider buys.
So what
Liquidia has been an up-and-down stock due to developments on the legal front, specifically a patent infringement dispute it was engaged in against plaintiff United Therapeutics (UTHR 0.17%). On Monday, a district court in Delaware ruled in favor of United, finding that Liquidia had infringed one of the two patents in dispute with its Yutrepia, the generic version of an inhalation powder that treats pulmonary arterial hypertension (PAH).
Both United and Liquidia claimed victory in the dispute, as the latter was not found to infringe both patents.
Regardless of these claims, the ruling is an unambiguous negative for Liquidia because it's likely that the court will issue an injunction barring the Food and Drug Administration (FDA) from granting Yutrepia final approval. The drug received tentative approval in November 2021.
After market hours on Thursday, though, top managers at Liquidia sent a strong signal to the market that they remain believers in their company's efforts.
A series of regulatory filings shows that five of the biotech's executives -- including CEO Roger Jeffs and chief financial officer Mike Kaseta -- purchased the stock two days after the ruling was handed down. All of the buyers bought amounts within a tight range: from 1,918 shares to 2,166.
Now what
In the grand scheme of things, those amounts aren't very significant. But it's more meaningful when a clutch of C-suite denizens pile in at the same time; investors tend to take this as an honest sign of belief and dedication. The company remains vulnerable, however, since Yutrepia is the only medication it officially lists as being in development.
