Liquidia is a top pick for this fund

Goodreid Investment Counsel portfolio manager Julien Nono-Womdim says Liquidia (Liquidia Stock Quote, Chart, News, Analysts, Financials NASDAQ:LQDA) remains one of the firm’s top picks despite a strong move in the stock.

Speaking on BNN Bloomberg’s Market Call on July 21, Nono-Womdim said Goodreid added Liquidia to its portfolio earlier this year and remains positive on the company’s outlook.

Liquidia is a biotechnology company focused on pulmonary arterial hypertension and pulmonary hypertension associated with interstitial lung disease.

Nono-Womdim said the company is targeting rare cardiovascular conditions in a market he estimates at about US$5-billion.

The investor said the market has historically been dominated by United Therapeutics, but Goodreid believes Liquidia has a stronger product offering, including dosing advantages and favourable patient outcomes.

“In this case, the incumbent is United Therapeutics, and we think Liquidia has a superior offering,” Nono-Womdim said.

He also said the valuation remains attractive, with Liquidia trading at about 10 times Goodreid’s 2028 earnings estimate.

“We believe that it’s a top pick for us,” he said.

Nono-Womdim acknowledged ongoing patent litigation with United Therapeutics, but said that type of dispute is common in biotechnology and represents a manageable risk relative to the drug’s potential.

Of the analysts covering the stock, seven rated it “Buy,” one rated it “Hold” and none rated it “Sell,” with a consensus target of US$74.25.

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