Tidbits from UTHR Catch-Up; Clearing the Path to IPF Launch

Coming off our catch-up with UTHR this morning and the company's 8-K, we see a framework in place that should allow for a substantial proportion of current PH-ILD patients on Yutrepia to transition to Tyvaso, and we think much of this process could occur over the next two quarters (i.e., 4Q and 1Q). We see the net result of this lifting what had been a near-term overhang on Tyvaso's pre-IPF quarters, and we continue to see Tyvaso's IPF launch making UTHR a stock to own given the very large market opportunity. On settlement economics, Liquidia's net ~$380.7mm headline encompasses $330.4mm gross paid to UTHR ($185mm within ~30 business days plus $145.4mm in two $72.7mm installments due Feb 1, 2027 and Apr 30, 2027), offset by $10mm paid by UTHR to Liquidia to settle the Sandoz/RareGen antitrust dispute. The $185mm past-sales damages represents ~27.5% of the ~$671mm total Yutrepia sales from launch through Sept 30, 2026. We think the PH-ILD transition should be largely complete by 2Q27. W