How Much Downside Is Left In Liquidia Stock

Over the past month, shares of Liquidia (LQDA) have lost 59%, even as the S&P 500 gained 2.5%. Reuters reported that the stock dropped nearly 50% on September 30 after a federal judge ruled that Yutrepia, Liquidia's inhaled lung drug, infringes a United Therapeutics patent. Liquidia subsequently settled all pending litigation with United Therapeutics on October 13, stating that Yutrepia will remain available to patients with PAH without disruption. If the wider market sells off from here, how much further could Liquidia stock fall?

How Deep Have Liquidia's Downturns Gone?

Liquidia has experienced seven market shocks since 2018. Across these periods, the stock fell an average of 28.7%, compared to a 17.1% decline for the S&P 500. The steepest of these drops came during the scare over Fed policy and growth in late 2018. From October 2018 to January 2019, Liquidia lost 52.0%, while the S&P 500 lost 19.0%. The stock also retreated 27.0% during the 2025 tariff shock, against 19.0% for the index. Across its full trading history, the deepest overall decline for Liquidia was 94%, stretching from a 2018 peak to a 2021 low.

The company ultimately recovered to its pre-shock high after all seven of those falls. A typical climb back from the low took 2.7 months. After the late-2018 fall, however, Liquidia needed 83.9 months to get back. That marks the only recovery of the seven that took more than a year.

Liquidia Has Swung From Heavy Losses To Profit

Over the last twelve months, Liquidia posted an operating margin of 37.4%, against 18.5% for the S&P 500. Just a year earlier, the company was losing about seven dollars on its operations for every dollar of sales.

Net product sales for Yutrepia reached $170.4 million in the second quarter of 2026, up 31% from the first quarter. Liquidia ended that quarter with about $284.2 million in cash, an increase of $61.4 million from the first quarter. Liquidia's debt equals just 5.4% of its market value, compared to 20.1% for the S&P 500.

What Could Still Go Wrong At Liquidia?

Going forward, Liquidia expects its costs to climb. During the August 12 call, held before the ruling, management projected that research spending in the second half of 2026 would double from the first half. Management expected that spending to rise again in 2027, alongside growing sales and administrative costs as the company scales. They noted some of those costs would grow in proportion to revenue.

On that call, management said it expected revenue to keep growing in line with Liquidia's quarterly growth so far. Yet management was not ready to say that the larger sales team, in the field since June, would speed up new patient starts.

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