Shares of Liquidia Technologies Inc. (NAS:LQDA) , a Durham, N.C.-based biotech, soared more than 70% Thursday before paring their gains, after Wedbush reiterated an outperform rating on the stock and said a $22.4 million fundraising will give the company the runway to keep going through the fourth quarter of 2020. The company said it sold 7.2 million shares at $3.13 a share in a private placement. Liquidia is aiming to leverage its proprietary Print technology to improve the clinical profile of approved active pharmaceutical ingredients, or APIs. The company's lead candidate called LIQ861 is a dry powder formulation of inhaled treprostinil to treat pulmonary arterial hypertension, or PAH. "In our view, LIQ861 has the potential to improve the therapeutic profile of treprostinil in treating PAH by safely delivering higher doses into the lung," Wedbush analysts led by Liana Moussatos wrote in a note to clients. The company is expecting to file a new drug application for the treatment in the first quarter of 2020. A second product candidate, LIQ865, a treatment for post-operative pain, is expected to enter phase 2 trials in 2020, said the note. Shares were last up 43% and have fallen 77% in the year to date, while the S&P 500 (S&P:SPX) has gained 29%. Company plans to initiate a Phase 2 study in 2020.
Dec. 26, 2019, 10:32 a.m. EST