This Biotech Fund Made a New $40 Million Bet on Liquidia Amid Blockbuster Commercial Drug Launch
Key Points
California-based TCG Crossover Management added 1.7 million shares of Liquidia for an estimated $38.9 million in the third quarter.
The position represented 1.9% of reported assets at quarter-end.
The move marked a new investment for TCG Crossover, which didn't report holding shares of Liquidia in the previous quarter.
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California-based TCG Crossover Management disclosed a new position in Liquidia Corporation (NASDAQ:LQDA) valued at approximately $38.9 million in an SEC filing on Friday.
What Happened
According to a filing with the Securities and Exchange Commission released on Friday, TCG Crossover Management initiated a new position in Liquidia Corporation (NASDAQ:LQDA), acquiring 1.7 million shares for an estimated $38.9 million during the third quarter. This new stake accounts for 1.9% of the fund’s reportable U.S. equity assets as of September 30, bringing the total number of reportable positions to 40.
What Else to Know
Top holdings after the filing:
- NASDAQ:ABVX: $603.8 million (29.7% of AUM)
- NASDAQ:CGON: $147.8 million (7.3% of AUM)
- NASDAQ:COGT: $97.6 million (4.8% of AUM)
- NASDAQ:AMLX: $84.9 million (4.2% of AUM)
- NASDAQ:CNTA: $76.1 million (3.7% of AUM)
As of Monday, shares of Liquidia were priced at $27.95, up a staggering 184% over the past year and well outperforming the S&P 500's nearly 15% gain in the same period.
Company Overview
| Metric | Value |
|---|---|
| Price (as of Monday) | $27.95 |
| Market Capitalization | $2.4 billion |
| Revenue (TTM) | $69.2 million |
| Net Income (TTM) | ($124.1 million) |
Company Snapshot
Liquidia Corporation is a biopharmaceutical company specializing in the development and commercialization of innovative therapies for pulmonary arterial hypertension, including YUTREPIA (an inhaled dry powder formulation of treprostini). The company leverages proprietary drug delivery technologies and a focused pipeline to address significant unmet medical needs in pulmonary arterial hypertension and related conditions. Its strategic emphasis on both branded and generic products provides a diversified approach to revenue generation within the biotechnology sector.
Foolish Take
TCG Crossover backs breakthrough platforms where biology, commercial execution, and market mispricing intersect, according to its website—and Liquidia’s trajectory seemingly checks all three boxes. Unlike some clinical-stage names in TCGX’s portfolio, Liquidia already has a rapidly scaling product in YUTREPIA, giving the fund exposure to both near-term revenue and long-duration scientific optionality within pulmonary disease.
Liquidia’s latest results reinforce that thesis. Product sales climbed to $51.7 million in Q3—its first full quarter of YUTREPIA commercialization—driving the company to positive operating income of $1.8 million, a sharp swing from last year’s $29 million operating loss. Meanwhile, patient adoption has accelerated meaningfully: More than 1,500 patients have initiated therapy, over 600 physicians have prescribed it, and 85% of prescriptions are new starts. Cash and equivalents ended the quarter at $157.5 million, with September marking the company’s first month of positive net cash flow.
Within TCGX’s portfolio, Liquidia’s mix of commercial demand and a solid pipeline offers a different, potentially lower-risk source of long-term value. The firm is now being driven by commercial execution and expanding profitability, and if YUTREPIA continues its adoption curve, long-term holders may benefit from both earnings leverage and potential across future drugs.
Glossary
13F reportable assets: The U.S. equity securities that investment managers must disclose quarterly to the SEC on Form 13F.
Assets under management (AUM): The total market value of investments managed by a fund or investment firm.
Position: The amount of a particular security or asset held by an investor or fund.
Stake: The ownership interest or proportion of shares held in a company by an investor or fund.
Top holdings: The largest investments in a fund’s portfolio, typically ranked by market value or percentage of AUM.
Outperform: When an investment achieves a higher return than a benchmark or comparable index over a given period.
Biopharmaceutical company: A firm that develops drugs using biological and chemical processes, often focusing on innovative therapies.
Proprietary drug delivery technologies: Unique methods owned by a company for administering medications to patients more effectively.
Generic therapies: Medications that are equivalent to brand-name drugs but sold under their chemical name after patent expiration.
Pipeline: The portfolio of drug candidates a biopharmaceutical company is developing, from early research to late-stage trials.
Unmet medical needs: Health conditions for which current treatments are inadequate or nonexistent.
TTM: The 12-month period ending with the most recent quarterly report.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Centessa Pharmaceuticals Plc. The Motley Fool has a disclosure policy.
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