06:57 AM EDT, 10/02/2024 (MT Newswires) -- Liquidia ( LQDA ) said Wednesday it expanded its current exclusive licensing agreement with Pharmosa Biopharm to develop and commercialize L606, an inhaled, sustained-release formulation of treprostinil.

The new agreement broadens Liquidia's ( LQDA ) licensed territory beyond North America to include regions in Europe, Japan, and elsewhere. Pharmosa retains rights to territories including China, Korea, Taiwan, the Middle East, and Southeast Asia.

Liquidia ( LQDA ) will lead development, regulatory, and commercial efforts for L606 in the newly licensed territories, while Pharmosa continues manufacturing the drug.

In addition, Liquidia ( LQDA ) has secured rights to Pharmosa's next-generation smart-technology nebulizers for use with its proprietary liposomal drug formulations, Liquidia ( LQDA ) said.

As part of the deal, Liquidia ( LQDA ) will make an upfront payment of $3.5 million to Pharmosa and up to $157.75 million in additional milestone payments. Liquidia ( LQDA ) said royalties to Pharmosa on global net sales of L606 remain "two tiers of low, double-digit royalties."